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Albaad Massuot Yitzhak Ltd.
Investor Presentation • May 18, 2023
6630_rns_2023-05-18_52a083df-6761-4c96-b2ce-4a19b8db84ae.pdf
Investor Presentation
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May
Results Overview Q1.2023
Forward looking statement
Legal disclaimer Important notice
This presentation (the "Presentation") is for informational purposes only and does not constitute or form any part of any offer for sale or subscription of, or solicitation of, any offer to buy or subscribe for any shares of Albaad Massuot Yitzhak LTD. (the "Company") or any of its affiliated entities.
This presentation contains partial information from the public reports of the Company under the Israeli Securities Law 5728-1968 (the "Securities Law"), which can be accessed on the Israeli Securities Authority's website, www.magna.isa.gov.il. A review of this presentation is not a substitute for a review of the detailed reports of the Company under the Securities Law and is not meant to replace or qualify them; rather, the presentation is prepared merely for the convenience of the reader, with the understanding that the detailed reports are being reviewed simultaneously.
Everything stated in this Presentation with respect to an analysis of the Company's business is merely a summary and any forwardlooking statements involve risks and uncertainties. These statements include descriptions regarding the intent, belief or current expectations of the Company. Such forward-looking statements are not guarantees of future results, performance or achievements and are based on current expectations, estimations, and assumptions, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performances or achievements of the Company may differ materially from what is or may be expressed or implied in this presentation due to a variety of factors, many of which are beyond the Company's control, including, without limitation, certain risk factors contained in the Company's reports. The Company disclaims any obligation or commitment to update these forward-looking statements to reflect new information, future events or developments or changes in expectations, estimates, projections and assumptions or otherwise.
The company is the largest manufacturer in Europe and one of the leaders in the world as production of wet wipes for the "private label" market
The company has 7 production sites in the world in a wide layout that allows proximity to the customer
The company is a vertical manufacturer of wet wipes, and produces most of the non-woven fabric for itself, which accounts for about 60% of the product's cost
In 2017, the company operated a new green production site in Dimona. The site produces flushable and dispersible paper in accordance with the advanced European regulation
The company continues to invest in innovation in its variety of products in accordance with the needs of advanced customers
The company is the largest manufacturer for USA and one of the leaders in the world as production of tampons for the "private label" market
New Operating Plan
Focusing on Wipes core activity Europe
Focusing on Tampons PL players in USA
Dimona Green hybrid product Line
Executing our finance strength plan
Highlights Q1.2023 results VS. Last year(000 NIS)
| Q1 2023 |
Q1 2022 |
Var | Var % |
|
|---|---|---|---|---|
| Sales | 413 | 354 | 58 | 16 |
| 293 | 708 | 585 | 5% | |
| , | , | , | ||
| EBIT | 16 | 166 | 1 | 11 |
| 925 | 15 | 759 | 6% | |
| , | , | , | ||
| EBIT | 17 | 15 | 2 | 16 |
| (Before | 637 | 157 | 480 | 4% |
| Others) | , | , | , | |
| EBITDA | 38 | 36 | 2 | 6 |
| (Continued | 348 | 117 | 231 | 2% |
| operation) | , | , | , | |
| EBITDA | 33 | 28 | 5 | 19 |
| 444 | 084 | 360 | 1% | |
| , | , | , | ||
| Profit Net (Continued operation) |
6 950 , |
436 7 , |
-486 | -6 5% |
| Profit Net |
1 419 , |
(2 576) , |
3 995 , |
|
| Operating activities CF - |
34 144 , |
(27 042) , |
61 186 , |
Sales +16% Sales in original currency +10%
+16% Operating Profit Before others
+6% EBITDA +19% inc. discontinued operation
+4M
Net Profit From negative to positive
Sales and EBITDA trends 2021-2023 *
Quarterly basis (000 NIS)
Sales and EBIT by Division *
Q1.2023 VS. Last year (000 NIS)
| Sales | EBIT | |||||
|---|---|---|---|---|---|---|
| Q1 2023 |
Q1 2022 |
Var % |
(Org ) Var % |
Q1 2023 |
Q1 2022 |
|
| Albaad Europe from sales % |
302 129 , |
262 001 , |
3% 15 |
0% 9 |
7 878 , 6% 2 |
16 087 , 1% 6 |
| Albaad IL from sales % |
56 372 , |
59 049 , |
-4 5% |
0% -7 |
(1 408) , (2 5%) |
4 608 , 7 8% |
| Albaad Fabric IL % from sales |
99 342 , |
87 294 , |
13 8% |
7 5% |
13 312 , 13 4% |
3 321 , 3 8% |
| Albaad Fem IL % from sales |
67 384 , |
45 775 , |
2% 47 |
0% 34 |
9 636 , 14 3% |
(4 072) , (8 9%) |
| Intercompany | (111 934) , |
(99 411) , |
(5 979) , |
245 | ||
| HeadQuarter Others & |
(5 802) , |
(5 032) , |
||||
| Total Company from sales % |
413 293 , |
354 708 , |
16 5% |
9 8% |
* 17 637 , 3% 4 |
15 157 , 3% 4 |
| Income/Expenses Other |
(712) | 9 | ||||
| Total Company from sales % |
413 293 , |
354 708 , |
5% 16 |
8% 9 |
16 925 , 1% 4 |
15 166 , 3% 4 |
Diverse Product Range
Home Care
Wipes Disinfecting /All Purpose Cleaning / Windows / Floors / Furnitures / Automotive
Hygiene
Wipes Moist Toilet Paper Consumer Healthcare Adult Care
Baby Care
Wipes Based formulas: Aqua / Gel / Rich Lotion / Diaper Rash Cream / Bathing Wipes
Cosmetics Wipes Makeup Remover / Hydrating / Exfoliating (abrasive) / Anti-aging
Fem. Care Tampons, Wipes Tampons: Tampon with a plastic applicator Tampon without applicator Tampon with a paper applicator Intimate Wipes
Albaad's Added Value
Global deployment
- ✓ Avoid Supply chain disruption
- ✓ Back up plan in case of disruption in one of our facilities
- ✓ Sufficient capacity in case market needs fast growing
- ✓ Nonwoven Production Albaad produces majority of its own nonwoven consumption
Marketing
- ✓ Identify and adjust the needs of each customer
- ✓ Highly qualified team well experienced with A brands needs
- ✓ Well informed on innovative raw materials (fabrics, laminate, Chemicals), products and customers trends worldwide
R&D
- ✓ Well trained and highly educated R&D corporate's team – led by PhD.
- ✓ Focuses on innovation
- ✓ Expertise in all production chain – Fibers, Fabrics and End-Products
Innovation & Future Growth Green product line in Dimona - the next generation
- In 2017, the company operated a new production site in Dimona.
- The site produces flushable and dispersible paper that is used as a basic material for moist toilet tissue products with the best washable quality.
- In July 2021, came into force the EU directives of labeling of single-use products made of plastic (SUPD). This decision has consequences regarding the composition of raw materials in wipes, which the company estimates will increase the demand for fabrics produced in the planned production line in Dimona.
- Completion of another production line for green fabrics by the end of 2023.
- The new line is a hybrid line that allows production in both paper technology and green non-woven technology.
Our Sustainability Management
Sustainable Supply Chain
Supply chain certifications in sites to promote production with sustainable raw materials.
Hydrofine® is made of 100% pulp and fibers that come from sustainably-managed forests.
Investments in Sustainable Production Lines
Investments in plastic-free production lines in Dimona enable us to deliver products that are in line with emerging regulations and markets needs.
Innovations & Future Growth
Sequel Partners with Albaad To Bring Revolutionary Game-Changing Tampons to Market
Finance strength plan – First phase completed
Dec. 2022 Successful Rights issue of 48.3 MNIS to Strengthen Albaad BS
Mar. 2023 Closing USA wipes activity
Receiving \$6M mainly for the inventory Stop losses in USA
May 2023 Receiving Bank waivers for Q2 & Q3.2023
Commitment to work plan and Budget that support our finance strength plan
Balance Sheet
Q1.2023 VS. Last year(000K NIS)
| 31 03 2023 |
from % total |
31 12 2022 |
from % total |
|||
|---|---|---|---|---|---|---|
| Cash and cash equivalents |
50 358 , |
3% | 27 186 , |
2% | ||
| Trade Receivables |
260 800 , |
16% | 254 547 , |
16% | ||
| 50M Cash on hand |
Inventory | 389 941 , |
24% | 393 313 , |
25% | |
| Other Current Assets |
45 836 , |
3% | 37 580 , |
2% | ||
| Total Current Assets |
746 935 , |
45% | 712 626 , |
45% | ||
| 366M Equity |
Non Current Assets |
896 424 , |
55% | 883 964 , |
55% | |
| Total Assets |
1 643 359 , , |
100% | 1 596 590 , , |
100% | ||
| Credit banking & institutions |
* 563 493 , |
34% | 538 805 , |
34% | ||
| 22% | Equity from total | Trade Payables |
263 285 , |
16% | 252 518 , |
16% |
| balance sheet | Total Liabilities Current |
950 753 , |
58% | 910 734 , |
57% | |
| Total Liabilities Long-Term |
326 041 , |
20% | 331 194 , |
21% | ||
| Equity | 366 565 , |
22% | 354 662 , |
22% | ||
| Total liabilities |
1 643 359 , , |
100% | 1 596 590 , , |
100% |
Finance strength plan – Going forward
Focus on company performance : EBITDA Growth, Operating Cash Flow
Sales & Lease Back of Dimona facility
Jordan site - continues to grow, becoming tampons' main packaging site
Strive to meet Banks Initial Covenants
THANK YOU
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