East African Breweries Plc · NSEKE:EABL
East African Breweries — FY2015 Earnings Presentation
27 slides from East African Breweries's earnings presentation, 2015
Slide 1: Full Year Results 2015
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Slide 2: Full Year Results Briefing
F15 Full Year Review FULL YEAR Charles Ireland RESULTS BRIEFING Financial Performance Tracey Barnes Q&A
Slide 3: F15 Full Year Review
F15 FULL YEAR REVIEW Charles Ireland Group Managing Director
Slide 4: Our ambition is clear
Our ambition is clear To create the best performing, most trusted and respected consumer products company in Africa Strengthen and accelerate our premium core brands Win in reserve in every market Innovate at scale to meet new consumer needs Build and then constantly extend our advantage in
Slide 5: Good top line performance with strong profit growth
Good top line performance with strong profit growth KES ‘m’ vs LY Net Sales 64,420 + 6% Cost of Sales + 6% Gross Profit + 6% Profit After Tax 9,575 40% + Underlying Profit growth + 16% 5
Slide 6: Underlying growth in all four markets
Underlying growth in all four markets Contribution FY FY to Overall Growth(Local Key Brands Growth(KES) EABL currency) KENYA 61% +3% +3% UGANDA 18% +4% +7% TANZANIA 11% -2% +2% EABLi 10% +53% +48% Total EABL 100% +6% 6
Slide 7: Growth in 6 out of 8 categories
Growth in 6 out of 8 categories Premium RTD’s Mainstream Emerging Beer & RTDs +17% +70% -2% -2% Reserve Premium Mainstream Emerging Spirits +71% +31% +9% +32% 7
Slide 8: Kenya: strong growth across spirits, premium beer and RTDs
Kenya Strong growth across +3% spirits, premium beer and RTD’s New Tusker Excluding Senator NSV +6% campaign launched Premium beer NSV grew by New Tusker 14% mainly due to Guinness and Tusker Lite Lite pack well received All Spirits categories recorded growth Reserve brands Growth in RTD cat
Slide 9: Uganda: Building momentum
Uganda Building momentum +4% Innovation driven by NSV grew by 7% in local the Waragi Sachet currency. and new Senator Stout Double digits growth of Growth based Premium beer on local currency Strong Waragi performance + 7% Bell Lager introduced Strong Reserve new consumer performance campaig
Slide 10: Tanzania: Gaining traction in a challenging market
Tanzania Gaining traction in a -2% challenging market Kibo Gold volumes up NSV grew by 2% at local currency. +++ Growth based Strong growth in emerging on local beer driven by Kibo Gold currency Lager Work required to strengthen Serengeti + 2% Lager Rapid growth in Reserve and International
Slide 11: EABLi: Progress in Rwanda, South Sudan is tough
EABLi Progress in Rwanda, +53% South Sudan is tough Currency Performance in South challenges in H2 Sudan slowed in H2 due to lack of US dollars $ Political instability in Burundi Progress in Rwanda Strong performance of spirits 11
Slide 12: We continue to invest in our future growth
We continue to invest in our future growth CAPEX Total F15 investment of KES 4.9bn • KBL stand by power • In Uganda, effluent treatment plant upgrade • Beer brewing efficiency Drive out Costs Local sourcing Driving up OEE’s Increasing productivity across all functions and investments 12
Slide 13: Route to Consumer delivering deeper brand availability
Route to Consumer delivering deeper brand availability 12,000 additional direct outlet calls Over 1000 newly licensed outlets in Kenya Distributor transformation in Kenya and Uganda Driving outlet standards through use of sales force automation Increased use of incentives and rewards
Slide 14: Our investment in people and communities underpins our business objectives
Our investment in people and communities underpins our business objectives Sustainability Diversity & Inclusiveness at the heart of our business #1 Values in Africa for number of women on the Board Amazing Line Manager programme- +400 participants Water Conservation 9,600 initiatives Retail st
Slide 15: Many successes across the year: F15 Highlights
Many successes across the year F15 Highlights Strong performance of Guinness Significant progress in Reserve and Premium spirits Many successful innovations: Smirnoff Ice Guarana, Senator Stout, Liberty, Platinum Serengeti Lager, Jebel Special, Jebel Gold, Jebel Coconut and Orijin. Culture t
Slide 16: Focus areas for F16
Focus areas for F16 Opportunities for further growth Accelerate volume growth Strengthen our mainstream beer brands Drive productivity Hedging East Africa currencies Further improvements in Working capital management 16
Slide 17: Thank You
Thank You Please hold the questions to the end 17
Slide 18: Financial Performance
FINANCIAL PERFORMANCE Tracey Barnes Group Finance Director
Slide 19: Good top and bottom line performance in F15
Good top and bottom line performance in F15 KES ‘m’ vs LY Net Sales 64,420 + 6% Cost of Sales + 6% Gross Profit + 6% Profit After Tax 9,575 40% +
Slide 20: Spirits growth is running faster than beer
Spirits growth is running faster than beer Spirits grew by 31% across the region 30-Jun-15 30-Jun-14 vs LY KES ’m’ KES ’m’ Beer grew by 4% mainly driven by premium and value category. Net Sales 64,420 60,749 + 6% Growth in RTD at 70% 20
Slide 21: Drive out costs helped to mitigate impact of inflation in cost of sales
Drive out costs helped to mitigate impact of inflation in cost of sales Local sourcing of raw and packaging materials Utilities usage reduction 30-Jun-15 30-Jun-14 vs LY KES ’m’ KES ’m’ Improvement on waste levels, utility usage and product quality Cost of Sales (32,389) (30,587) + 6% Develo
Slide 22: Investment in our brands and overheads management supported growth
Investment in our brands and overheads management supported growth 30-Jun-15 30-Jun-14 Selling and Distribution vs LY KES ’m’ KES ’m’ costs are 5% above last year Selling and Distribution (6,038) (5,761) + 5% Administrative expenses improved by 16% benefitting from last year’s re-organisation Ad
Slide 23: Decreased our finance cost and reduced the effective tax rate
Decreased our finance cost and reduced the effective tax rate Total group borrowings decreased by KES 2.8bn. 30-Jun-15 30-Jun-14 vs LY KES ’m’ KES ’m’ Issued medium term loan of KES 5bn Finance cost (4,074) (4,259) - 4% Net reduction in average interest costs to 11.4% Income tax Reduced effe
Slide 24: We are disposing Central Glass Industries to focus on our core business
We are disposing Central Glass Industries to focus on our core business 30-Jun-15 30-Jun-14 vs LY KES ’m’ KES ’m’ Profit after Taxation 9,535 6,849 39% Profit from discontinued operations 40 10 Profit for the year 9,575 6,859 40% Non Controlling interest (623) (360) 73% Profit attributable to Equity
Slide 25: Proposed dividends
Proposed dividends Proposed Dividends KES/Share Final Dividend 6.0 25
Slide 26: Q & A Session
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Slide 27: Cautionary statement concerning forward-looking statements
Cautionary statement concerning forward-looking statements This presentation contains ‘forward-looking’ statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looking statements include all statem
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