Uac Of Nigeria Plc · NSENG:UACN
Uac Of Nigeria — H1 2024 Earnings Presentation
30 slides from Uac Of Nigeria's earnings presentation, Aug 27, 2024
Slide 1: UAC of Nigeria PLC H1 2024 Results
UAC of Nigeria PLC H1 2024 Results 27 August 2024 Fola Aiyesimoju – Group Managing Director Funke Ijaiya-Oladipo – Group Finance Director
Slide 2: Disclaimer
Disclaimer 2 This presentation contains forward-looking statements which reflect management's expectations regarding UAC of Nigeria PLC, its subsidiaries and associate businesses (“UAC”, the “Company” or “Group”) future growth, results of operations, performance, business prospects, operating market
Slide 3: Contents
Contents 3 Introduction 4 Operating context 6 H1 2024 highlights 9 H1 2024 financial performance 15 Outlook 18 Appendix 1: Segment performance highlights 21 Appendix 2: Additional financial information 24
Slide 4: Introduction
Introduction
Slide 5: Introduction
Introduction 5 ▪ UAC of Nigeria PLC (“UAC”) recorded revenue of ₦83 billion and Profit Before Tax of ₦15 billion in H1 2024. ▪ In this presentation we will cover ─ Operating conditions ─ Initiatives executed in H1 2024 ─ H1 2024 financial performance ─ Outlook ▪ Performance in H1 2024 was much stron
Slide 6: Operating Context
Operating Context
Slide 7: Operating conditions remain very difficult, with low growth, record high inflation, and increasing interest rates
Operating conditions remain very difficult, with low growth, record high inflation, 7 and increasing interest rates Real GDP Growth Exchange Rate ₦:$ 1,800 CBN rates Parallel 5.0% 1,600 4.0% 4.0% 1,400 3.5% 3.5% 3.5% 1,200 3.1% 3.0% 2.5% 2.5% 1,000 2.3% 2.3% 800 600 0.5% 400 200 - Q1 Q2 Q3 Q4 Q1 Q2
Slide 8: Escalation of raw materials and operating costs continues in 2024
Escalation of raw materials and operating costs continues in 2024 8 Animal Feed Paints Maize Soya Bean Resin Titanium Dioxide Food 427 N/Kg 257 247 187 161 109 122 115 110 105 116 112 100 100 100 100 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2
Slide 9: H1 2024 Highlights
PN H1 2024 Highlights
Slide 10: Packaged Food & Beverages, Paints and Edibles & Feed are UAC's key operating segments
Packaged Food & Beverages, Paints and Edibles & Feed are UAC’s key operating segments 10 Portfolio Holdings (Controlling Interests) Associate Holdings (Non-controlling Interests) Packaged Food Edibles and Feed Real Estate Logistics Tech Paints Quick Service and Beverages Restaurants Revenue contribu
Slide 11: Core to UAC's strength are its leading brands and distribution
Core to UAC’s strength are its leading brands and distribution 11 Brands Reach Packaged ▪ National distribution coverage Food and Beverages ▪ 63 million units of snacks, water and dairy sold ▪ 201 retail outlets Paints ▪ 5.5 million litres of paint ▪ 22 restaurants across Nigeria Quick Service Resta
Slide 12: Our response to the operating context impacted performance
Our response to the operating context impacted performance 12 Our H1 2024 Performance was impacted by Strategic Pricing, Cost Management and Employee Salary Adjustments. Proactive and ▪ Proactive and disciplined approach to pricing and protecting our margins. disciplined pricing ▪ Focused on profita
Slide 13: We executed the following strategic objectives in H1 2024
We executed the following strategic objectives in H1 2024 13 Portfolio ▪ UAC Foods - 2 products launched in the last 12 months. Growth ▪ CAP Paints - Launched 30 new stores in line with objective of deepening retail reach. ▪ Improved control: In line with efforts to exercise appropriate oversight ov
Slide 14: We recorded robust revenue and profit growth in H1 2024
We recorded robust revenue and profit growth in H1 2024 14 Revenue (₦’mn) Gross margin (%) 83,252 22.5% +617bps +57% 16.3% 52,870 H1 2023 H1 2024 H1 2023 H1 2024 Commentary Operating margin (%) • Strong H1 2024 performance driven by volume growth in Packaged Food and Beverages segment, dynamic prici
Slide 15: H1 2024 Financial Performance
H1 2024 Financial Performance
Slide 16: H1 2024 financial highlights
H1 2024 financial highlights 16 Operating Free Cash Return on Revenue EPS1 Profit Flow Invested Capital2 H1 H1 H1 H1 H1 ₦83bn ₦6.7bn 304 kobo ₦6.3bn 28.2% +57% (₦35.2mn)3 53 kobo (₦239mn) 2,835 bps vs H1 2023 H1 2023 H1 2023 H1 2023 vs H1 2023 (1) Earnings per share from continuing operations (2) In
Slide 17: Balance sheet and liquidity
Balance sheet and liquidity 17 Net Assets Net Debt/(Cash) Capex Cash Cycle ₦61.6bn (₦7.9bn) ₦2.2bn 71 days +₦8.4bn ₦2.2bn ₦4.7bn 83 days vs Dec 2023 Dec 2023 Dec 2023 Dec 2023
Slide 18: Outlook
Outlook
Slide 19: Outlook
Outlook 19 Despite the challenging operating context, we aim to build on the strong performance recorded thus far. Our focus remains on creating shareholder value by prioritising profitable growth, simplicity, and scale. • Growth: Prioritise growth across our leading consumer segments, with strong p
Slide 20: Questions & Answers
Questions & Answers For further information please contact UACN Investor Relations Email: Investorrelations@uacnplc.com Phone: +234 906 269 2908
Slide 21: Appendix 1: Segment performance highlights
Appendix 1 Segment performance highlights
Slide 22: Segment performance highlights
Segment performance highlights 22 Edibles and ▪ Enhanced profit driven by cost management initiatives and proactive pricing. Feed ▪ Focus is on expanding solvent extraction capacity to drive growth for the Grand Pure Soya Oil business and (40% EBIT) maintaining improved profitability trend. ▪ As of
Slide 23: Packaged Food and Beverages: Spotlight on Key Innovation
Packaged Food and Beverages: Spotlight on Key Innovation 23 Kingsway Pastry Roll Gala Sausage Roll – N200 Gala Chin Chin • Launched in August 2023. • Gala at ₦200 SKU has now been • Launched in July 2024. • Now #2 in sausage roll fully established in the market. • Potential to be a significant categ
Slide 24: Appendix 2: Additional financial information
Appendix 2 Additional financial information
Slide 25: Income statement – H1 2024
Income statement – H1 2024 25 ₦ mn, unless otherwise stated H1 2024 H1 2023 % change Revenue 83,252 52,870 57% Gross Profit 18,712 8,619 117% Gross Profit Margin (%) 22% 16% 617 bps Operating Profit 6,658 (35) n/m Operating Profit Margin (%) 8% (0.1%) 806 bps Net Finance Income 7,816 2,717 188% Shar
Slide 26: H1 2024 financial performance
H1 2024 financial performance 26 In Naira Millions Q1 2024 Q1 2023 % Change Q2 2024 Q2 2023 % Change H1 2024 H1 2023 % Change Revenue 40,556 24,620 65% 42,696 28,250 51% 83,252 52,870 57% COGS (31,462) (21,341) 47% (33,079) (22,910) 44% (64,541) (44,252) 46% Gross Profit 9,094 3,279 177% 9,617 5,340
Slide 27: Segment Performance Snapshot – H1 2024
Segment Performance Snapshot – H1 2024 27 Revenue Profit Before Tax ₦ mn H1 2024 H1 2023 % ₦ mn H1 2024 H1 2023 % Group 83,252 52,870 57% Group 14,950 3,163 373% Edibles and Feed 39,585 30,645 29% Edibles and Feed 913 (2,171) n/m Paints 15,613 9,777 60% Paints 2,675 1,912 40% Packaged Food & Bever
Slide 28: Financial Position – June 2024
Financial Position – 30 June 2024 28 Summary Balance Sheet Working Capital N mn Jun-24 Dec-23 % N mn Jun-24 Dec-23 % Non-current Assets 50,964 48,348 5% Inventory 29,689 26,917 10% Current Assets 73,305 63,467 16% Trade Receivables 1,343 1,280 5% Other Assets 493 531 (7%) Trade Payables 5,569 5,53
Slide 29: Net Cash Position
Net Cash Position 29 Net (Debt)/Cash Position as at 30 June 2024 (in ₦ mn) Net Cash Cash & Cash Short-Term Long-Term (excl. Intra- Intra-Group Net Cash (incl. Equivalents Debt Debt Group) Payable Intra-Group) UAC HoldCo 19,854 (10,015) - 9,839 12,527 22,366 Other Operating Segments 12,917 (12,458) (
Slide 30: Cash Flow
Cash Flow 30 PBT to Free Cash Flow ₦ mn, unless otherwise stated H1 2024 H1 2023 Profit Before Tax from continuing operations 14,950 3,163 Non-Cash charges (5,978) (1,273) Changes in working capital: 1,317 1,526 of which receivables 340 (204) of which inventory (2,849) (1,934) of which payables 3,29