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Albaad Massuot Yitzhak Ltd. Interim / Quarterly Report 2024
6630_rns_2024-05-21_0548221a-d4ac-41aa-9d60-63065be80a70.pdf
Interim / Quarterly Report
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May
2024
Financial Results Overview Q1.2024
1
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.
Q1.2024 COMPANY MAIN HIGHLIGHTS CONCLUDING Q1.2024 WITH
- SALES INCREASE OF 0.7% TO 416M NIS
- GROSS PROFIT MARGIN improved to 20.2%
- EBIT* INCREASE OF 46% TO 25.7M NIS
- EBITDA** INCREASE OF 26% TO 48.3M NIS
- NET PROFIT** INCREASE OF 37% TO 9.5M NIS
- OPERATING Cash Flow 31.5M NIS
- NET DEBT DECREASE TO 526M NIS
SALES & EBITDA* TRENDS 2022-2024
QUARTERLY BASIS (000 NIS)
Sales EBITDA
NET DEBT TO EBITDA* TRENDS 2022-2024
QUARTERLY BASIS (000 NIS)
Net Debt EBITDA (LTM)
HIGHLIGHTS
Q1.2024 Results VS. Last year (000 NIS)
+1% Sales Sales in original currency -3.4% +46% Operating Profit
+52% including others
+26%
EBITDA +45% inc. discontinued operation
+37%
Net Profit +13 M inc. discontinued operation
| Q1 2024 |
Q1 2023 |
Var | Var % |
|
|---|---|---|---|---|
| Sales | 416 222 , |
413 293 , |
2 929 , |
0 7% |
| EBIT | 25 755 , |
16 925 , |
8 830 , |
52 2% |
| EBIT (Before Others) |
25 755 , |
17 637 , |
8 118 , |
46 0% |
| EBITDA (Continued operation) |
48 278 , |
38 348 , |
9 930 , |
25 9% |
| EBITDA | 48 626 , |
33 440 , |
15 186 , |
45 4% |
| Profit Net (Continued operation) |
9 512 , |
6 950 , |
2 562 , |
36 9% |
| Profit Net |
14 501 , |
1 419 , |
13 082 , |
SALES & EBIT* BY DIVISION
Q1.2024 VS. Last year (000 NIS)
| Sales | * EBIT |
|||||||
|---|---|---|---|---|---|---|---|---|
| Q1 2024 |
Q1 2023 |
Var % |
(Org.) Var % |
Q1 2024 |
Q1 2023 |
|||
| Albaad Europe |
326 010 , |
302 129 , |
7 9% |
3 0% |
23 087 , |
7 878 , |
||
| % from sales |
7.1% | 2 6% |
||||||
| Albaad IL |
55 829 , |
56 372 , |
(1 0%) |
(2 5%) |
3 073 , |
(1 408) , |
||
| from % sales |
5.5% | (2 .5%) |
||||||
| Fabric Albaad IL |
044 77 , |
99 342 , |
(22 4%) |
(26 0%) |
3 089 , |
13 312 , |
||
| from sales % |
4 0% |
13 4% |
||||||
| Albaad Fem IL |
49 136 , |
67 384 , |
(27 1%) |
(29 8%) |
1 292 , |
9 636 , |
||
| % from sales |
2 6% |
14 3% |
||||||
| Intercompany | (91 797) , |
(111 934) , |
732 | (5 979) , |
||||
| HeadQuarter Others & |
(5 518) , |
(5 802) , |
||||||
| Company Total |
416 222 , |
413 293 , |
7% 0 |
4% -3 |
25 755 , |
17 637 , |
||
| % from sales |
6 2% |
4 3% |
||||||
| Other Income/Expenses |
(712) | |||||||
| Total Company |
416 222 , |
413 293 , |
0 7% |
-3 4% |
25 755 , |
16 925 , |
||
| from % sales |
6 2% |
4 1% |
BALANCE SHEET
AS OF 31.03.2024 VS. 31.12.2023 (000 NIS)
| 31 03 2024 |
from % total |
31 12 2023 |
from % total |
|||
|---|---|---|---|---|---|---|
| 18M Cash on hand |
Cash and cash equivalents |
17 921 , |
1% | 19 133 , |
1% | |
| Trade Receivables |
218 944 , |
14% | 213 956 , |
14% | ||
| Inventory | 321 982 , |
21% | 328 969 , |
21% | ||
| Other Current Assets |
34 925 , |
2% | 32 184 , |
2% | ||
| 7M | Reduction of inventory | Current Total Assets |
593 772 , |
38% | 594 242 , |
38% |
| Non Current Assets |
969 348 , |
62% | 988 361 , |
62% | ||
| Total Assets |
1 563 120 , , |
100% | 1 582 603 , , |
100% | ||
| 417M | Equity | Credit banking & institutions |
408 829 , |
26% | 392 243 , |
25% |
| Trade Payables |
213 289 , |
14% | 222 718 , |
14% | ||
| Current Total Liabilities |
563 733 , |
47% | 713 183 , |
45% | ||
| 27% Equity from total balance sheet |
Total Long-Term Liabilities |
412 976 , |
26% | 466 178 , |
29% | |
| Equity | 416 581 , |
27% | 403 242 , |
25% | ||
| Total liabilities |
1 563 120 , , |
100% | 1 582 603 , , |
100% |
INNOVATION & FUTURE GROWTH Green product line in Dimona - the next generation
- o Green hybrid production line that enables production in both paper technology and green non-woven technology
- o The Hydrofine® Products from the new hybrid line will serve both flushable MTT wipes as well as traditional baby, cosmetic and cleaning wipes
- o All Hydrofine® Products are made from 100% natural, plant based components
- o Production is expected during H2 2024
- o Approximately 158M NIS invested up to March 2024 from total budget of about 200M NIS
SUMMARY
Improving Banks Covenants*
o Net Liabilities to EBITDA Ratio 1.91 (Covenant <3.6) / Tangible Equity Ratio 27.4% (Covenant >21%)
Completing USA project
- o Selling/clearing all wipes, fabric and chemicals inventory
- o Moving to a sub-tenant lease agreement, reducing the rental area & maintenance cost
- o Receiving the deal Escrow of \$1m
- o Recognizing from the above 5.2m NIS net profit
Maintaining positive performance for EBITDA Growth & Operating Cash Flow
- o Inventory reduction of 7m NIS since Dec 2023, reduction of 68m NIS vs. Q1.2023
- o Operating Cash Flow of 31.5m NIS
- o Free Cash Flow** of 15.5m NIS including Dimona line 2 investments
** FCF 15.5 m = Operating CF 31.5 m + Leasing liability repayment (-7.5 m) – Interest (-9.6 m) + CAPEX (-18.1 m)
FURTHER STRENGTHENING & FUTURE GROWTH
Further Finance Strengthening
- o Optimizing our debt structure, given our achievement in exceeding bank covenants
- o Closing Sale & Lease Back transaction of Dimona facility
Future Growth
- o Dimona Green hybrid production line as milestone for growth, aligns with our sustainability strategy
- o Continues efforts to develop Spunlace-based tampon after getting patent approval
- o Focusing on new customers & Innovation products expanding Europe sales teams
- o Establish production excellence project to enhance efficiency
THANK YOU
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