Guinness Nigeria Plc · NSENG:GUINNESS
Guinness Nigeria — H1 F21 Earnings Presentation
20 slides from Guinness Nigeria's earnings presentation, February 2021
Slide 1: F21 GNL Half Year Results Investor's Call
F21 GNL Half Year Results Investor’s Call * Confidential *
Slide 2: Half Year Results Investors' Call
F21 Half Year Review Baker Magunda HALF YEAR F21 Half Year Financial Performance Review RESULTS Stanley Njoroge INVESTORS’ CALL F21 Priorities Baker Magunda Q&A Viola Graham-Douglas * Confidential *
Slide 3: F21 Half Year Review
F21 HALF YEAR REVIEW Baker Magunda Managing Director * Confidential *
Slide 4: Tough Macroeconomic Environment and #EndSARS Disruptions Impacted Q2
Tough Macroeconomic Environment and #EndSARS Disruptions Impacted Q2… Negative GDP Growth FX Scarcity Inflation Unemployment 44.6 43 27.1 21.8 23.1 35 2018 2019 2020 Nigeria External reserve (bn $) TradingEcomic.com - CBN Budget As of Q1 2018Q1 2019Q2 2020 2020 Oil price NBS, EIU, FDC Think Tank ($/
Slide 5: Despite this, we have delivered growth across strategic categories
Despite this, we have delivered growth across strategic categories… WITHIN STOUT MAINSTREAM PREMIUM SPIRITS MALTS & RTDS SPIRIT Malts Brand Mainstream Premium +5% Guinness* Spirits Spirits -1% +46% +12% RTDs *Local Guinness grew in revenue by 5% but was dragged +1% down by there being no intercompan
Slide 6: We have maintained A&P investments in line with strategy
We have maintained A&P investments in line with strategy… • Rolled out NCP, A&P Re-investment rates Trademark & Smooth Tribe Campaigns • Eastern Engagement executed across 3 Key 11% Cities & 200 Outlets WITHIN STOUT 8% • Leveraged the BBN platform to position Johnnie Walker as the most distinctive p
Slide 7: We remain focused on supporting our people while working mainly online
We remain focused on supporting our people while working mainly online due to COVID-19… 1. Favorable media features e.g. Baker with Anne 1 Nwaghodoh of Channels Television speaking about our contributions to Nigeria & Guinness Nigeria’s 70th Annual General meeting. 2. GLT-led Mission business sessio
Slide 8: We have maintained our engagement and investment in our communities
We have maintained our engagement and investment in our communities during the challenging environment… 1. Water Replenishment/ Water of Life 1 2 We completed the renovation of 4 Water of Life (WOL) projects in Lagos and Ogun States impacting 5760 direct beneficiaries. 2. Community Outreach: Our foo
Slide 9: F21 Half Year Financial Highlights
F21 Half Year Financial Highlights Stanley Njoroge Finance and Strategy Director * Confidential *
Slide 10: Continued growth in spirits contribution, in line with strategic focus
Continued growth in spirits contribution, in line with strategic focus. At 10% in FY18…now 25% contribution to TBA, 32% plus RTD. * Confidential *
Slide 11: Growth plus Efficiencies Maintains Operating Margin but fx and one-off tax charge impacted PAT
Growth plus Efficiencies Maintains Operating Margin but fx and one-off tax charge impacted PAT… 6 Months Ended 6 Months Ended 31 December 31 December Var vs. LY Top line growth of +6% driven by increase 2020 2019 in spirits, Malta Guinness and local N'000 N'000 % Revenue 72,350,954 68,327,257 6% Gui
Slide 12: Pricing opportunities in beer and malts remain elusive competitively unlike spirits
Pricing opportunities in beer and malts remain elusive competitively unlike spirits… * Confidential *
Slide 13: Our RTC Reboot has ensured continued strong cash delivery and low credit risk
Our RTC Reboot has ensured continued strong cash delivery and low credit risk… ❑ Significant reduction in Trade debt due to increased cash sales. ❑ On-going implementation of Project runway (RTC) via the Distributor Finance Scheme. 98 of 101 zones covered. ❑ Reduced credit risk as we see increase in
Slide 14: Cash and Deposit Position
CASH AND DEPOSIT POSITION N’Bn F21 H1 F20 H1 Δ% COMMENT Bullish cash collection largely as a result of the DFS, EPD, & CASH 31.5 8.5 494% Diageo brand support; FCY closing cash position is 9% (US$7m) N’Bn F21 H1 F20 H1 Δ% COMMENT Repayment of trade loans (IFF) – N3b & short-term DEBT 11.7 18.1 (18%)
Slide 15: Cash Optimization
CASH AND DEBT MANAGEMENT EMBEDDING THE DISTRIBUTOR HOLDING FCY POSITION FINANCING SCHEME FOR TRADE SETTLEMENT CASH OPTIMIZATION REPAYMENT OF ICO LOAN EXCESS CASH INVESTING * Confidential *
Slide 16: Capital Structure Ratios
CAPITAL STRUCTURE RATIOS N’ Bn F21H1 F20H1 Δ% EBITDA 7.8 8.9 (1%) NET INTEREST 1.0 1.4 (29%) EQUITY 72.7 87.1 (17%) NET DEBT (19.8) 9.6 (306%) TARGET NET DEBT/EBITDA (2.54x) 1.08x 0.5x – 1.0x NET DEBT/EQUITY -27% 11% 30% - 50% NET INTEREST COVER 7.8x 6.4x > 4x * Confidential *
Slide 17: F21 Priorities
F21 Priorities Baker Magunda Managing Director * Confidential *
Slide 18: Within Stout, Mainstream Spirit, Premium Spirits, Malts & RTDs priorities
WITHIN STOUT MAINSTREAM PREMIUM SPIRITS MALTS & RTDS ✓ GROW SHARE SPIRIT ✓ GROW SHARE ✓ HOLD SHARE ✓ GROW EQUITY ✓ GROW SHARE ✓ HOLD EQUITY ✓ HOLD EQUITY ✓ EXPAND ✓ GROW EQUITY ✓ EXPAND ✓ EXPAND FOOTPRINT ✓ EXPAND FOOTPRINT FOOTPRINT ✓ PROTECT FOOTPRINT ✓ PROTECT ✓ COST MARGINS ✓ PROTECT MARGINS ABS
Slide 19: Q&A
Q&A Viola Graham-Douglas Corporate Communications Director * Confidential *
Slide 20: Cautionary Statement concerning forward-looking statements
Cautionary Statement concerning forward-looking statements • This presentation is based on Guinness Nigeria Plc’s audited financial results for full year period ended 31st December 2020. Guinness Nigeria Plc (“GN” or the “Company”) has obtained some information in this presentation from sources it b