Uac Of Nigeria Plc · NSENG:UACN
Uac Of Nigeria — H1 2022 Earnings Presentation
22 slides from Uac Of Nigeria's earnings presentation, Aug 4, 2022
Slide 1: UAC of Nigeria PLC H1 2022 Results
UAC of Nigeria PLC H1 2022 Results 4 August 2022 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 Operating context 4 H1 2022 financial performance 7 H2 2022 focus areas 11 Appendix 1: Additional financial information 16
Slide 4: Operating Context
Operating Context
Slide 5: Low Growth, High Inflation, Currency Under Pressure, Higher Interest Rates
Low Growth, High Inflation, Currency Under Pressure, Higher Interest Rates 5 Real GDP Growth Exchange Rate ₦:$ 5.0% CBN rates Parallel 4.0% 4.0% 3.1% 700 1.9% 0.5% 600 0.1% 500 400 300 (3.6%) 200 (6.1%) 100 0 Q1 2020 Q2 2020 Q3 2020 Q4 2024 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 2017 Jan-21 Dec-21
Slide 6: Escalation of Key Production Input Costs
Escalation of Key Production Input Costs 6 Animal Feed Paints Maize Soya Bean Resin Titanium Dioxide Food 257 231 178 216 209 151 208 151 100 100 100 100 2020 2021 YTD 2022 2020 2021 YTD 2022 2020 2021 YTD 2022 2020 2021 YTD 2022 Flour Vegetable Oil Skimmed Milk Sugar 151 148 100 272 220 100 199 214
Slide 7: H1 2022 Financial Performance
H1 2022 Financial Performance
Slide 8: H1 2022 Financial Highlights
H1 2022 Financial Highlights 8 Operating Free Cash Return on Revenue EPS1 Profit Flow Invested Capital2 ₦52bn ₦1.6bn (17 kobo) (₦4.5bn) 5.4% +11.9% (9.3)% 5 kobo ₦14.4bn (25 bps) vs H1 2021 vs H1 2021 H1 2021 vs FY 2021 vs H1 2021 (1) Earnings per share from continuing operations (2) Invested capita
Slide 9: Balance Sheet and Liquidity
Balance Sheet and Liquidity 9 Net Assets Net Debt Net Capex Cash Cycle ₦48.3bn ₦16.5bn (₦2.4bn) 169 days (₦2.6bn) +₦8.0bn (₦1.0bn) +33 days vs Dec 2021 vs Dec 2021 vs Dec 2021 vs Dec 2021
Slide 10: Increase in Debt Largely Working Capital for Animal Feeds Segment
Increase in Debt Largely Working Capital for Animal Feeds Segment 10 In Naira millions Group debt Inventory N12.4bn increase; 44,757 • +N8bn Animal Feeds 29,660 ₦12.3 bn net increase; • +N3bn Paints + ₦ 12.9bn Animal Feeds; • +₦1.3bn Packaged - ₦875mn Paints Food & Beverages + ₦232mn QSR 32,342 17,3
Slide 11: H2 2022 Focus
PN H2 2022 Focus *\
Slide 12: Animal Feeds Impact on H1 2022 Performance (PAT)
Animal Feeds Impact on H1 2022 Performance (PAT) 12 In Naira millions • Holdco – ₦264 mn • Paints – ₦350 mn • Packaged F & B – (₦156 mn) • QSR – (₦278 mn) • GCL - (₦ 1,512 mn) • Associates: ₦ 322 mn • LSF - (₦ 431 mn)
Slide 13: Reduce Animal Feeds Leverage and Inventory
Reduce Animal Feeds Leverage and Inventory 13 Animal Feeds Leverage (in ₦’mn) Animal Feeds Inventory (in ₦’mn) 35,717 29,105 27,674 16,217 H1 2021 H1 2022 H1 2021 H1 2022 Animal Feeds Revenue (in ₦’mn) Aggressive Sell down of Inventory 252 ▪ Focus on reduction of inventory to reduce leverage 187 30,
Slide 14: Commission New SWAN Water Line
Commission New SWAN Water Line 14 Monthly production (in millions of litres) New Capacity 20.6mn 3x Current Capacity 5.9 6.2 5.9 5.9 6.4 6.0 5.9 5.8 4.8 5.2 5.0 4.9 5.3 5.5 5.5 4.5 4.9 6.9mn 4.0 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22
Slide 15: Other Focus Areas
Other Focus Areas 15 ▪ We have recently completed the transition to a new enterprise resource planning tool SAP S/4 Hana SAP ▪ We are in the Hypercare stage focused on addressing end user complaints ▪ The next stage will be maximizing value from the investment ▪ UAC Restaurants, our Quick Service Re
Slide 16: Appendix 1: Additional Financial Information
Appendix 1 Additional financial information
Slide 17: Income Statement
Income Statement 17 ₦ mn, unless otherwise stated Q2 2022 Q2 2021 D% H1 2022 H1 2021 D% FY 2021 FY 2020 D% Revenue 24,376 24,478 (0.4%) 52,042 46,499 11.9% 101,377 81,358 24.6% Gross Profit 3,862 4,313 (10.5%) 8,937 8,324 7.4% 17,540 15,990 9.7% Gross Profit Margin (%) 15.8% 17.6% (178 bps) 17.2% 17
Slide 18: Performance Snapshot – H1 2022
Performance Snapshot – H1 2022 18 Revenue Profit Before Tax N mn H1 2022 H1 2021 D% D% N mn H1 2022 H1 2021 Animal Feeds & Other Edibles 30,403 28,260 7.6% Animal Feeds & Other Edibles (1,500) 521 (388.2%) Paints 8,745 6,789 28.8% Paints 1,329 763 74.3% Packaged Food & Beverages 12,658 11,903 6.3% P
Slide 19: Performance Snapshot – Q2 2022
Performance Snapshot – Q2 2022 19 Revenue Profit Before Tax N mn Q2 2022 Q2 2021 D% N mn Q2 2022 Q2 2021 D% Animal Feeds & Other Edibles 13,859 14,244 (2.7%) Animal Feeds & Other Edibles (1,370) 171 (902.3%) Paints 4,089 4,219 (3.1%) Paints 548 442 24.1% Packaged Food & Beverages 6,172 6,002 2.8% Pa
Slide 20: Financial Position – 30 June 2022
Financial Position – 30 June 2022 20 Summary Balance Sheet Working Capital N mn Jun-22 Dec-21 D% N mn Jun-22 Dec-21 D% Non-current Assets 43,171 42,029 2.7% Inventory 44,757 36,214 23.6% Current Assets 63,172 56,354 12.1% Trade Receivables 2,179 1,104 97.4% Other Assets 550 550 - Trade Payables 6,53
Slide 21: Net Debt Position
Net Debt Position 21 Net (Debt)/Cash Position as at 30 June 2022 (in ₦ mn) Intra group Net Net Cash & Cash Short term Long term Net debt (exc. receivable/ (debt)/cash (debt)/cash equivalents Debt Debt Intra-group loans) (payable) (June 2022) (Dec. 2021) UAC Company 5,546 (18,239) - (12,693) 18,674 5
Slide 22: Cash Flow
Cash Flow 22 PBT to Free Cash Flow ₦ mn, unless otherwise stated H1 2022 H1 2021 Profit Before Tax from continuing operations 12 1,296 Profit/ (Loss) before tax from discontinued operations (39) (2) Non-Cash charges 2,531 1,432 Changes in working capital (4,571) (15,983) of which receivables 3,469 (