Zambeef Products Plc · LSE:ZAM
Zambeef Products — H1 2014 Earnings Presentation
23 slides from Zambeef Products's earnings presentation, March 2014
Slide 1: Interim Results for the six months to 31 March 2014
Interim Interim Results Results for forthe thesix sixmonths months to to31 31March March2014 2014
Slide 2: Disclaimer
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Slide 3: Key Points
2014 Key Key Points Points 3
Slide 4: Overview
Overview • Difficult six months - Revenues USD 140m (2013: USD 153m) - Adjusted PBT USD 3.2m loss (2013: USD 9.3m profit) • Good performance - Cropping, West Africa, Milk & Dairy • Challenging performance - Pork, Beef, Edible Oils, • Improved balance sheet and cashflow • Focus on strategic prioritie
Slide 5: 2014 Financials
2014 Financials 5
Slide 6: Abridged Income Statement
Abridged Income Statement Period to 31 Mar Period to 31 Mar USD‘000s 2014 2013 % CHANGE Turnover 140,230 153,351 (8.6%) Gross Profit 45,852 55,602 (17.5%) Other Income 77 14 448.1% Administrative Expenses (43,228) (42,892) 0.8% Admin expenses excl Depreciation (37,994) (38,509) (1.3%) Depreciation (
Slide 7: Income Statement Key Movements
Income Statement Key Movements • Depreciation of Kwacha - 15% against USD in six months • Effect on input prices - Edible oils, crops, stock feed • Decrease of soya price – USD 100 a tonne • African Swine Fever *Source xe.com 7
Slide 8: Abridged Balance Sheet
Abridged Balance Sheet Period to 30 March Period to 30 March USD‘000s 2014 2013 Non-Current Assets 255,999 183,714 Current Assets 106,174 147,718 TOTAL ASSETS 362,173 331,432 Capital and Reserves 216,293 163,245 Non-Current Liabilities 67,651 67,161 Current Liabilities 78,229 101,026 TOTAL EQUITY AN
Slide 9: Abridged Cash Flow
Abridged Cash Flow Period to Period to USD‘000s March 2014 March 2013 Profit Before Taxation (6,537) 6,406 EBITDA 8,544 16,557 Movement in Working Capital 2,719 (5,790) Cash inflow/(outflow) from Operating Activities 11,263 10,767 Investing activities Cash inflow/(outflow) from/(on) investment activ
Slide 10: Revenue and Gross Profit Summary
Revenue and Gross Profit Summary 2014 2013 2014 2013 Revenue Revenue Gross Profit Gross Profit Segment USD ‘m USD ‘m Movement USD ‘m USD ‘m Movement Edible oils 32.0 38.8 (17.5%) 6.2 9.2 (32.6%) Beef 30.1 34.1 (11.7%) 7.5 11.2 (33.0%) Stock feed 27.6 24.0 15.0% 4.9 5.8 (15.5%) Cropping 28.3 23.4 20.
Slide 11: Divisional Review
Divisional Review Farming Perishables Manufacturing • Cropping (GP USD14m, down 9%) • Beef (GP USD8m, down 33%) • Edible oils (GP USD6m, down 33%) - Beef product imports - 16,199 Ha planted - 25,789 tonnes crushed (27,133 in - Traditional cattle supply pressure H1 2013) - Soya price - Commercial cat
Slide 12: Segmental Analysis
Segmental Analysis West Africa (GP USD2m, up 37%) • Nigeria – 9 Shoprite stores (3 more by the year end) – 6 Self-operated stores • Ghana – 3 Shoprite stores (2 more by the year end) • Infrastructure complete Retail - Retail Sales recovered 12
Slide 13: Segmental Summary
Segmental Summary Revenue Gross Profit Fish, Zam Milk & Dairy, Fish, Zam Milk & Dairy, Chick Inn & 4% Chick Inn, 4% 7% Edible Oils, Mill & Bakery, Leather, 3% Edible Oils, 14% 4% Mill & Bakery, 20% 3% West Africa, West Africa, 6% 5% Beef, 16% Pork, 6% Pork, 2% Chicken Chicken & Egg, 9% & Egg 8% Beef
Slide 14: Business Update and Strategic Re-focus
Business Update and Strategic Re-focus • The Zambeef Platform in Africa • Feeding the Region • Strategic Partnerships • Realising Value 14
Slide 15: The Zambeef Platform in Africa
The Zambeef Platform in Africa • Zambia: − One of the fastest growing economies in SSA & ranked 9 th in the IMF’s forecast of the world’s fastest growing global economies − GDP growth averaging >6.5% over last 5 years & forecast to grow at c.7% over next 3 years − Rapidly expanding consumer base, dr
Slide 16: Feeding the Region
Feeding the Region • Exports increasing: – 2011: USD 5.4m – 2013: USD 30.3m – 2014 H1: USD 20.2m • Current African export countries: Kenya, DRC, Malawi, Namibia, Botswana, Zimbabwe, South Africa 16
Slide 17: Strategic Partnerships
Strategic Partnerships • Leverage large player industry expertise and experience to accelerate growth and reduce risk • Success of Rainbow JV with Zam Chick and Zamhatch • Key focus on value added processed chicken products • Zamhatch JV to establish breeder farm, hatchery and stockfeed plant – impr
Slide 18: Realising Value
Realising Value • Significant asset revaluation gains in 2013 • Actively looking to realise value • Help to reduce debt and to lower exchange rate risk 18
Slide 19: Summary/Outlook
Summary/Outlook • Macro economic factors, increased competition and external events have impacted 2014 H1 But… • Fully integrated and operationally robust business model will deliver long term growth • 3 prong strategy: – become a regional player – forge alliances and partnerships – unlock value • D
Slide 20: Appendices
APPENDICES Appendices 20
Slide 21: Attractive Zambia Fundamentals
Attractive Zambia Fundamentals • One of the fastest growing economies in SAA; with GDP growth averaging more than 6.5% over the last 5 years • Ranked 9th in IMF’s forecast of the world’s fastest growing global economies • Consumer sector growing at an average of >14% • GDP per capita has increased f
Slide 22: Why Invest In Africa?
Why Invest In Africa? Today Future GDP Growth Increased to 4.7% in 2013 supported by Strengthening external demand is robust domestic demand, notably expected to support growth over the investment growth forecast horizon, with GDP growth projected to rise to 5.5% in 2016 Population 1 billion people
Slide 23: Private Bag 17 Private Bag 17 Plot 4970
Private Bag 17 Private Bag 17 Plot 4970 Woodlands Woodlands PlotIndustrial Manda Road 4970 Area Manda Road Industrial Area Lusaka Lusaka Zambia Zambia Tel: +260 211 369 000 Tel:Fax: +260 211 211 +260 369 369 000 050 Fax: +260 211 369 050 www.zambeefplc.com www.zambeefplc.com 23