Quantum Foods Holdings Ltd · JSE:QFH
Quantum Foods — H1 2021 Earnings Presentation
26 slides from Quantum Foods's earnings presentation, March 2021
Slide 1: Results Presentation for the six months ended 31 March 2021
RESULTS PRESENTATION for the six months ended 31 March 2021 QUANTUM FOODS | RESULTS PRESENTATION 2021
Slide 2: Agenda
Agenda Business overview H Lourens Financial overview A Muller Operational overview H Lourens Management focus H Lourens QUANTUM FOODS | RESULTS PRESENTATION 2021 2
Slide 3: Business Overview
BUSINESS OVERVIEW BUSINESS OVERVIEW H Lourens QUANTUM FOODS | RESULTS PRESENTATION for the six months ended 31 March 2021
Slide 4: Salient features
Salient features BUSINESS OVERVIEW • Continuous raw material price increases: Operating Revenue profit • Maize – 26% • Soybean meal – 28% 8% 19% • Customers under pressure – medium-sized abattoir in Western Cape went into business Interim dividend HEPS per share rescue 22% Nil • Consumers remain fin
Slide 5: Financial Overview
FINANCIAL OVERVIEW FINANCIAL OVERVIEW A Muller QUANTUM FOODS | RESULTS PRESENTATION for the six months ended 31 March 2021
Slide 6: Statement of income
Statement of income FINANCIAL OVERVIEW 2021 2020 % For the six months ended 31 March Rm Rm change Revenue 2 643.8 2 439.1 8 Operating profit* 73.8 91.4 (19) Income from associates 0.6 1.2 Net finance cost (1.7) (0.8) Profit before tax 72.7 91.8 (21) Tax (20.2) (25.2) Profit for the period 52.4 66.6
Slide 7: Revenue analysis
Revenue analysis FINANCIAL OVERVIEW Total R2 644 million (2020: R2 439 million) ANIMAL FEEDS EGGS FARMING OTHER AFRICA R1 204m R598m R696m R147m 45% 23% 26% 6% 2020: R1 085m | 44% 2020: R578m | 24% 2020: R647m | 27% 2020: R129m | 5% QUANTUM FOODS | RESULTS PRESENTATION for the six months ended 31 Ma
Slide 8: Segment results
Segment results FINANCIAL OVERVIEW 2021 2020 Adjusted operating profit for the six months ended 31 March Rm Rm Eggs (18.2) (19.5) Farming 34.0 67.8 Animal feeds 49.2 48.1 Other African countries 17.6 0.6 Head office costs (8.7) (5.7) Profit for the period 73.9 91.3 QUANTUM FOODS | RESULTS PRESENTATI
Slide 9: Statement of financial position
Statement of financial position FINANCIAL OVERVIEW 31 Mar 2021 30 Sep 2020 Rm Rm Non-current assets 1 286.2 1 222.1 Net working capital 823.1 713.6 Non-current liabilities (excluding lease liabilities) (258.0) (229.9) Cash 86.3 251.8 Total net assets 1 937.6 1 957.5 Lease liabilities (70.3) (71.9) E
Slide 10: Statement of cash flow
Statement of cash flow FINANCIAL OVERVIEW 2021 2020 For the six months ended 31 March Rm Rm Cash profit from operating activities 138.5 144.5 Working capital outflow (110.7) (73.1) Cash effect of hedging activities (7.7) 13.5 Tax paid (20.7) (11.2) Cash (utilised) / generated by operations (0.6) 73.
Slide 11: Capital expenditure
Capital expenditure FINANCIAL OVERVIEW YTD Mar 2021 Future cash flow Rm Rm RSA Expansion/efficiency 23.7 20.5 – Feed mills 10.8 11.2 – Farms 6.4 7.3 – Packing stations 0.1 0.4 – Energy 6.4 1.5 Replacement/compliance 24.8 38.8 Africa Expansion/efficiency 12.9 6.1 – Uganda breeder farms 12.9 3.3 – Moz
Slide 12: Operational Overview
OPERATIONAL OVERVIEW OPERATIONAL OVERVIEW H Lourens QUANTUM FOODS | RESULTS PRESENTATION for the six months ended 31 March 2021
Slide 13: Nova Feeds
Nova Feeds OPERATIONAL OVERVIEW STEADY PERFORMANCE IN RISING INPUT COST ENVIRONMENT • Continuous increase in raw material costs • Challenging market conditions – aggressive pricing by competitors • Total volumes declined by 5% – internal volumes declined by 7% • Stable margins • Feed performance rem
Slide 14: Bergvlei Layer Farming
Bergvlei Layer Farming OPERATIONAL OVERVIEW STEADY PERFORMANCE • Breeder performances remain on standard • Commercial pullet-rearing cycle in process of normalising • Commercial layer results weaker than 2020 but still at targeted level • Placement cycle not in sync, which has a negative impact on s
Slide 15: Broiler Farming
Broiler Farming OPERATIONAL OVERVIEW OPERATIONAL & INDUSTRY CHALLENGES • Customer in Western Cape went into business rescue • Volumes of day-old chicks produced declined by 2.3% • Customer preference for smaller-frame bird resulted in lower total weight sold • Breeder challenges continue and exit of
Slide 16: Nulaid Eggs
Nulaid Eggs OPERATIONAL OVERVIEW TOUGH INDUSTRY CONDITIONS EXPECTED TO CONTINUE • Negative impact on margin due to higher feed costs • Volumes declined due to fewer eggs available from own farms • Egg prices responded well to slow reduction in national layer flock (27.9m May 2021 vs. 29.4m September
Slide 17: Rest of Africa
Rest of Africa OPERATIONAL OVERVIEW MUCH-IMPROVED PERFORMANCE IN ZAMBIA • Maize prices well below previous period in Uganda and Zambia • Final product prices increased in Zambia and Mozambique • Productivity improvement in Zambia • Cost base increased due to weakening of local currencies • Capital p
Slide 18: Management Focus
MANAGEMENT FOCUS MANAGEMENT FOCUS H Lourens QUANTUM FOODS | RESULTS PRESENTATION for the six months ended 31 March 2021
Slide 19: Management focus
Management focus MANAGEMENT FOCUS • Judicious procurement – expect high raw material price environment to continue • Final synchronisation of layer placement and cull cycles • Continuous vigilance regarding Avian Influenza • Continued strong focus on cost management and efficiencies • Maintain margi
Slide 20: Thank you
Thank you MANAGEMENT FOCUS QUANTUM FOODS | RESULTS PRESENTATION for the six months ended 31 March 2021 20
Slide 21: Appendix
APPENDIX APPENDIX QUANTUM FOODS | RESULTS PRESENTATION for the six months ended 31 March 2021
Slide 22: Safex yellow maize Rand per ton
Safex yellow maize Rand per ton APPENDIX 4 500 4 200 3 900 3 399 3 600 3 351 3 300 3 000 2 749 2 634 2 700 2 460 2 367 2 400 2 099 2 100 1 800 1 500 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Average for financial period QUANTUM FOODS | RESULTS
Slide 23: CBOT US Dollar soybean meal
CBOT US Dollar soybean meal APPENDIX 500 475 450 425 405 400 375 339 341 350 313 314 325 306 297 300 275 250 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Average for financial period QUANTUM FOODS | RESULTS PRESENTATION for the six months ended 31
Slide 24: Rand:US Dollar exchange rate
Rand:US Dollar exchange rate APPENDIX 20 19 18 17 16.22 16 15.28 14.77 14.34 15 13.37 14 13.07 13 12.01 12 11 10 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Average for financial period QUANTUM FOODS | RESULTS PRESENTATION for the six months ende
Slide 25: Egg realisation movement
Egg realisation movement APPENDIX 140.00 135.00 130.00 AI effect 125.00 120.00 Index Flock 115.00 Normal replacement cycle 110.00 Lockdown 105.00 increased demand 100.00 95.00 90.00 Sep 16 Mar 17 Sep 17 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 QUANTUM FOODS | RESULTS PRESENTATION for the six
Slide 26: www.quantumfoods.co.za
www.quantumfoods.co.za QUANTUM FOODS | RESULTS PRESENTATION 2021