RESILIENCE CONFIRMED IN 2020 ..., LAUNCH OF A MAJOR INVESTMENT PROGRAM
A limited drop in revenue thanks to the diversification
In 2020, Mutandis achievements are in line with our initial forecasts (Cf. Start 2021 under the
cash-conversion perspective). In a challenging context, the Group is demonstrating the resilience
of its business model, benefiting from the diversification of its business portfolio.
The operator's revenue recorded a relatively limited drop of -4.5% to MAD 1,396 Mn against AGR
estimate of -3.0%. This is attributed to the significant drop in sales volumes for Food Bottles of
-11.0% and the decline in revenues for Seafood and Fruit Juices of -4.7% and -3,3% respectively.
In contrast, the Detergents segment rose by 2.6% supported by a solid domestic Demand.
An appreciable resilience of EBITDA above MAD 220 Mn
In terms of profitability, the EBITDA remained almost stable at MAD 225 Mn, i.e. a slight decrease
of -1.0%. This indicator have benefited from an almost general improvement in the contribution
margin at the level of the various business segments. Finally, the reported NIGS stands at
MAD 68 Mn against an initial estimate of MAD 66 Mn. This is a decrease of -17.4% under the effect
of the increased investment effort and the integration of the Covid-19 donation.
A stable dividend policy, in line with the Management's announcements
Thanks to the resilience of its cash-flow levels, Mutandis offers a stable 2020 DPS at MAD 8.5.
Under these conditions, the D/Y settles at 3.8%, offering an attractive spread of 190 BPS compared
to the 5-year TB. It is comforting that the evolution of the DPS is taking place in stages
since the Group’s IPO, as it has been raised from MAD 7.5 to MAD 8.5 currently.
Imminent launch of a major investment program
At the release of its 2020 results, Mutandis announced the launch of a new investment program
worth MAD 300 Mn. This has been eagerly awaited by the market since its IPO in December 2018.
This major investment would support the operator's future growth thanks to a significant impact
on the Group’s profitability over the MT.
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