Zambeef Products Plc · LSE:ZAM
Zambeef Products — FY2015 Earnings Presentation
19 slides from Zambeef Products's earnings presentation, September 2015
Slide 1: Results for the year ended 30 September 2015
for the year ended 30-September 2015 5 nae Pt Ne a = a = Se = rt SCaING A Growing COnMHeNT,
Slide 2: Disclaimer
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Slide 3: Our vision and strategy
Our vision and strategy Our vision is to be one of the most accessible and affordable quality protein provider in the Southern Africa region, delivered through the Group’s extensive retail and distribution network. Retail and cold chain Meat and dairy – Agreement with Shoprite to manage the Shoprite
Slide 4: Highlights
• Strong performance from core cold chain food products division – Market-driven strategy – new macro outlets. • Further progress in West Africa – 3 new Shoprite stores – 8 expected • RCL Foods Ltd hatchery joint venture and Zamchick • Disposal of our edible oils business, Zamanita Ltd, to Cargill f
Slide 5: Financial highlights
Revenue 4% (USD) 25% (ZMW) 2015: USD220 million 2015: ZMW1,555 million Gross Profit 12% (USD) 34% (ZMW) 2015: USD94 million 2015: ZMW667 million Operating Profit 140% (USD) 189% (ZMW) 2015: USD23 million 2015: ZMW162 million Net cash inflow from operating activities 171% (USD) 223% (
Slide 6: Exchange losses and profit before tax
Exchange losses 20m loss (USD) 142m loss (ZMW) • 2014: USD3.9m loss • 2014: ZMW22.6m loss Profit before tax 5m loss (USD) 35.6m loss (ZMW) • 2014: USD1.7m loss • 2014: ZMW9.8m loss Zambeef Products PLC 2015 6
Slide 7: 2015 Financials
2015 Financials lll
Slide 8: Income statement
30 September 2015 30 September 2014 USD'000 USD'000 % Change Revenue 220 237 211 588 4.09% Cost Of Sales (125 801) (127 108) 1.03% Gross Profit 94 436 84 480 11.79% Other Income 100 467 -78.53% Administrative Expenses (71 578) (75 395) 5.06% Administrative Expenses (excluding depreciation) (62 081)
Slide 9: Balance sheet
30 September 2015 30 September 2014 USD'000 USD'000 Non-Current Assets 165 515 257 182 Current Assets 65 818 115 538 Total Assets 231 333 372 720 Capital and Reserves 122 736 214 249 Non-Current Liabilities 42 952 63 374 Current Liabilities 65 645 95 096 Total Equity and Liabilities 231 333 372 720
Slide 10: Cash flow
30 September 2015 30 September 2014 USD'000 USD'000 Profit Before Taxation (5 038) (3 598) EBITDA 21 176 18 259 Movement in Working Capital 16 185 (4 456) Cash inflow/(outflow) from Operating Activities 37 361 13 803 Cash inflow/(outflow) from/(on) investment activities (3 551) (16 992) Cash inflow/
Slide 11: Divisional performance: perishables, farming, manufacturing
PERISHABLES FARMING MANUFACTURING BEEF CROPPING EDIBLE OILS 5.65% 35.86% 48.38% GP: USD 19.26m GP: USD 35.88m GP: USD 5.72m • Beef sales increased by 410t to 14,110t • 24,174 Ha planted • Crushed 34,050 M.T. • 57,945 cattle slaughtered – predominantly soya, wheat and • Challenges – Exchange Rate; in
Slide 12: Percentage of group gross profit
% OF GROUP Cold Chain Food Products GROSS PROFIT 2015: 40.58% 2014: 40.46% 40.00% 2015 35.45% 2014 35.00% 27.98% 30.00% 25.00% 19.32% 19.03% 20.00% 11.74% 15.00% 10.44% 9.85% 7.57% 7.40% 6.51% 10.00% 6.01% 5.65% 4.60% 4.21% 3.71% 3.54% 2.71% 2.16% 2.09% 1.94% 1.80% 1.73% 1.59% 5.00% 1.35% 0.96% 0.64
Slide 13: Gross profit by division (USD'000)
GROSS PROFIT (USD’000) Cold Chain Food Products 2015 2015: 41 075 2014: 38 192 2014 35,882 40,000 35,000 26,411 30,000 25,000 19,263 18,233 20,000 11,077 15,000 10,567 9,301 7,493 7,150 10,000 6,149 6,088 5,718 4,660 3,977 3,759 3,341 2,560 2,041 1,970 1,959 1,823 1,748 1,612 5,000 1,277 904 650 - B
Slide 14: Core cold chain food products revenue and stores
45 SHOPRITE STORES 26 in Zambia, 14 in Nigeria, 5 in Ghana CORE COLD CHAIN FOOD PRODUCT REVENUE 92 7 NEW SHOPRITE STORES ZAMBEEF STORES 86 in Zambia, 6 in Nigeria opened during 2015 – 3 in Zambia, 3 in Nigeria & 1 in Ghana Beef Chicken 4 MACRO STORES NEW PROCESSING AND & 3 WHOLESALES DISTRIBUTION HU
Slide 15: Focus on strategic priorities
Focus on Strategic Priorities: Chicken Breeder Farm, Retailing of cold chain meat West African Hatchery and new Stock and dairy products Expansion Feed Plant at Mpongwe Strong operating Unlocking value and capital gains Farm within the group and reducing debt / 8 new Shoprite stores due to performan
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Slide 17: Operating in some of the fastest growing parts of the world
Zambia • One of the fastest growing economies in Sub-Saharan Africa (“SSA”) in recent years. • GDP growth averaging >6.5% over last five years and forecast to grow at c.5% over next three years. • Current population of c.15.5 million. • One of the world’s fastest growing populations, expected to rea
Slide 18: Africa today and future
TODAY FUTURE Strengthening external demand is expected to support growth over the forecast period, GDP Growth Currently 4.2% for 2015 with GDP growth projected to rise to 4.6% in 2016 Estimated to increase to 1.4 billion in 2025 Population 1.1 billion people in 2015 and 2.5 billion in 2050 One third
Slide 19: Contact details
Private Bag 17, Woodlands Plot 4970, Manda Road Industrial Area, Lusaka. Zambia Tel: +260 211 369 000; Fax: +260 211 369 050 www.zambeefplc.com