Bua Foods Plc · NSENG:BUAFOODS
Bua Foods — FY2022 Earnings Presentation
34 slides from Bua Foods's earnings presentation, Apr 12, 2023
Slide 1: Leading With Purpose
Leading With Purpose Investor and Analyst Call - Full Year 2022 Performance 12th APRIL 2023
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) ▪ This presentation has been prepared by BUA Foods PLC (“BUA Foods” or the “Company”) to provide an overview of the Company. “Presentation” means this document, its contents or any part of it, any oral presentation, any question or answer session and any written or oral material dis
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) ▪ The presentation includes market share and industry data obtained by the Company from industry publications and surveys and internal surveys. BUA Foods may not have access to the facts and assumptions underlying the numerical data, market data and other information extracted from
Slide 4: Presenters
Presenters +30 years combined Industry experience in the following sectors. ❑ Automobile -ASA Workshop ❑ Construction – Servetek Engineering Ltd. ❑ Foods and Beverages ❖ Nigerian Bottling Co. ❖ Royal Beverages ❖ Seven up Bottling Company ❖ The Coca-Cola Company ❑ FinTech –. SecureID Smart Card Manuf
Slide 5: Contents
Contents Sections 1 Company Overview and Year 2022 Review. 2 Macro-economic Environment 3 Creating Values for Shareholders 4 Strategic Business updates 5 Financial Highlights 6 2023 Outlook 7 Appendix
Slide 6: Section 1: Company Overview and Year 2022 Review
SECTION 1: Company Overview and Year 2022 Review
Slide 7: Our Philosophy
OUR PHILOSOPHY To fulfill Africa’s food demands by promoting food security and nourishing lives To provide high quality foods with a focus on creating long-term value for all stakeholders Our Core Values Respect Innovation Commitment Excellence Give it! It's all about We take our We will always go G
Slide 8: Our Business and Result at a glance
Our Business and Result at a glance Company Structure Plants Locations 5 2 Business Wholly owned Sugar divisions Subsidiaries Rice Flour Edible Oils 8 #2 Largest sugar Plants across the Pasta refinery in West country Africa 100% BUA Sugar Refinery FZE LASUCO Sugar Company 100%Limited >20 #5 Years co
Slide 9: 2022 Key Achievements
2022 Key Achievements. 1. BUA Foods Plc listed on the main board of the Nigerian Exchange Limited 2. BUA Foods Plc hosts National Sugar Dev. Council in Lafiagi. 3. Successful 1st AGM 4. Commence Export Sales, Enrolled MV Bundu 5. Completed additional 720,000MTPA Flour & 250,000MTPA Pasta plant 6. Co
Slide 10: 2022 Review: capital market performance
2022 Review: Our performance in the capital market has been very positive •Share price grew 62.5% closing at N65.00 •Market Capitalization: 1.17TN from 720BN •Shareholder count closed at 435% growth • Achieved 100% dividend pay out of N63 Billion
Slide 11: 2022 Review: awards
2022 Review: Listed as one of the most profitable and valuable business ✓ Business Day Award: FMCG Company of the year ✓ NGX Award: Listing of the year (EQUITY) ✓ CSR Reporters Award: Best Company in Poverty Alleviation ✓ Brand Communicator Magazine: Most Outstanding Food Manufacturing Company of th
Slide 12: Section 2: Macro-Economics Environment
SECTION 2: Macro-Economics Environment
Slide 13: Nigeria- macro-economic environment (Key Highlights)
Nigeria- macro-economic environment (Key Highlights) • GDP - Nigeria’s annual • INFLATION - ▪ Monetary • Forex - Nigerian naira weakened Gross Domestic Product Headline inflation Policy by 8.9% to ₦482.1/$1 in 2022 at (GDP) growth rate in 2022 rate quickened to - The CBN the official window, as the
Slide 14: Section 3: Value creation for shareholders
SECTION 3: Value creation for shareholders
Slide 15: Business Performance Highlights
Business Performance Highlights Sustained value creation with strong performance. RETURN ON REVENUE: N418.3BN EQUITY: 40% 26% 14% EARNING PER SHARE: PROFIT AFTER TAX: N5.07. N91.3BN 19.6% 30% *DIVIDEND PER NET PROFIT SHARE: N4.50 SHARE PRICE:N 65.00 MARGINS: 22% 62.5% 28.6% 4% *proposed.
Slide 16: Business Performance Highlights: Production and Utilization
Business Performance Highlights. We are optimizing our asset utilization despite supply chain challenges Aggregate Production (million-tons) Aggregate Utilization (%) *Impacted by energy disruption half year in 2022. *Impacted by energy disruption half year in 2022. 2022* 60.6% Year 2022 1,126,620 9
Slide 17: Business Performance Highlights: Cost per ton
Business Performance Highlights. We are balancing rising cost and other headwinds while preserving business profitability margins Revenue per tone Cost of Sales per ton Energy Cost per ton SD &A per ton (N’000) (N’000) (N’000) (N’000) +31% +31.3% +40.6% +33% ₦320.09 ₦9.31 ₦37.00 ₦244.60 ₦7.10 ₦26.3
Slide 18: Section 4: Strategic Business Update
SECTION 4 : Strategic Business Update
Slide 19: Business Growth Strategy - Clear strategic priorities
Business Growth Strategy - Clear strategic priorities Short to Medium Term Long Term 1 Improve Market 2 Boost Capacity Share across all through Expansion of Expansion of Five Business Expansion of Operating Market Share Divisions Funding Base Platforms and Products Improve 4 Improve Route 1 2 3 Prox
Slide 20: Capacity expansion in Flour and Pasta Divisions
Additional 720,000MTPA Flour & 250,000MTPA Pasta plant We completed our capacity expansion plans in Flour and Pasta Divisions.
Slide 21: Rice Mills upgradation
200KMTPA Rice Mill in Kano. We completed our Rice Mills upgradation
Slide 22: Market Expansions
Market Expansions. Expanded our market into the subregion. As we continue to develop new products offerings.
Slide 23: Driving through Sustainability
Driving through Sustainability. We remain committed to responsible production and environmental stewardship GHGe(KgC/ton): Water Economy (m3/ton): Air Quality (ppm): Noise Pollution (decibel): 2022: 191 2022: 2.5 2022: 0.49 2022: 78 2021: 205 2021: 3.24 2021: 0.58 2021: 84 Our social impact investme
Slide 24: Section 5: Financial Highlights
SECTION 5: Financial Highlights
Slide 25: Group
BUA Foods maintained double digit growth and strong performance in FY 2022 Group In thousands of naira FY 2022 FY 2021 Δ Revenue 418,347,770 333,272,234 26% Cost of Sales 285,555,236 230,312,612 24% Gross Profit 132,792,534 102,959,622 29% Gross Margin (%) 31.8% 30.9% 90bps Selling and distribution
Slide 26: Underlying revenue growth from pricing, product mix and export sales
Underlying revenue growth from pricing, product mix and export sales strategy +31.7% ₦275.1 billion ❑ Strategic Price +26% adjustment to reflect the rise in input cost ❑ Export sales impacting ₦418.3bn +24.0% the west African market ₦85.9 billion for growth ₦333.2bn ❑ Managing volume mix dynamics to
Slide 27: Effective management of costs across the business divisions
Effective management of costs across the business divisions, despite marginal volume decline Inflationary Pressure Levers deployed to manage such pressure Revenue growth management – volume planning, pricing actions to reflect market realities +23.2% +24% Raw material & FX sourcing dynamics +7.9% En
Slide 28: Positive impact of growth strategy
Positive impact of growth strategy EBITDA Operating Profit Profit after Tax +45.3% +47% +31% ₦125.8bn ₦117.5bn ₦91.3bn ₦86.6bn ₦79.9bn ₦69.7bn FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 ROE (%) ROA (%) FY 2021 35.0% FY 2021 12% +25% +14% FY 2022 FY 2022 15% 40.00%
Slide 29: We remain committed to strengthening our balance sheet
We remain committed to strengthening our balance sheet Strong total asset with decent growth Capital risk management by Reducing Net Continuous growth of Retained Term Borrowing with improved Gear Ratio Earnings +15.7% +2.3% -26% 109% ₦222.9bn ₦607.2bn 80% ₦198.4bn ₦593.5bn ₦192.6bn FY 2021 FY 2022
Slide 30: Section 6: 2023 Outlook
SECTION 6: 2023 Outlook
Slide 31: Outlook for 2023
Outlook for 2023. We remain commitment to deliver superior value to our shareholders in the mid to long-term leveraging our Unique Strategic Business Model. FY 2023 Growth Targets Grow Revenue - commercialization of Rice, Double digits Grow Flour and Pasta additional capacities. growth in Revenue Ex
Slide 32: Thank You
THANK YOU Investor Relations Contact: Gabriel Fapojuwo | Investor Relations Manager BUA Foods Plc: PC 32, Churchgate Street,Victoria Island. Tel: +234 14610669, +234 8166723182 Contact Us: info@buafoodsplc.com | Email: customerservice@buafoodsplc.com | Website: www.buafoodsplc.com buafoods
Slide 33: Q&A
Q&A Investor Relations Contact: Gabriel Fapojuwo | Investor Relations Manager BUA Foods Plc: PC 32, Churchgate Street,Victoria Island. Tel: +234 14610669, +234 8166723182 Contact Us: info@buafoodsplc.com | Email: customerservice@buafoodsplc.com | Website: www.buafoodsplc.com buafoods
Slide 34: FOODS
FOODS courant -" Like you, we put cur l ¢ heart inte it 4 ayes 4/12/2023 34