Bua Foods Plc · NSENG:BUAFOODS
Bua Foods — H1 2023 Earnings Presentation
26 slides from Bua Foods's earnings presentation, Aug 9, 2023
Slide 1: Leading With Purpose
Leading With Purpose Investor and analyst conference call – H1 2023 performance 9th August 2023
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) ▪ This presentation has been prepared by BUA Foods PLC (“BUA Foods” or the “Company”) to provide an overview of the Company. “Presentation” means this document, its contents or any part of it, any oral presentation, any question or answer session and any written or oral material dis
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) ▪ The presentation includes market share and industry data obtained by the Company from industry publications and surveys and internal surveys. BUA Foods may not have access to the facts and assumptions underlying the numerical data, market data and other information extracted from
Slide 4: Presenters
Presenters +30 years combined Industry experience in the following sectors. ❑ Automobile -ASA Workshop ❑ Construction – Servetek Engineering Ltd. ❑ Foods and Beverages ❖ Nigerian Bottling Co. ❖ Royal Beverages ❖ Seven up Bottling Company ❖ The Coca-Cola Company ❑ FinTech –. SecureID Smart Card Manuf
Slide 5: Themes
Themes: 1 Our business philosophy 2 Business performance and key highlights 3 Financial highlights 4 2023 Outlook 5 Q&A 05
Slide 6: SECTION 1: Our business philosophy
SECTION 1: Our business philosophy 06
Slide 7: Our Philosophy
OUR PHILOSOPHY To fulfill Africa’s food demands by promoting food security and nourishing lives To provide high quality foods with a focus on creating long-term value for all stakeholders Our Core Values Respect Innovation Commitment Excellence Give it! It's all about We take our We will always go G
Slide 8: SECTION 2: Business performance and key highlights
SECTION 2: Business performance and key highlights 09
Slide 9: Our business situation at a glance
Our business situation at a glance Business Facts Our Locations Our Performance 5 2 Business Wholly owned divisions Subsidiaries REVENUE: PROFIT AFTER N320.93BN TAX: N95.19BN 8 #2 Largest sugar Plants across the refinery in West country Africa EXPORT VOLUME: FLOUR VOLUME >20 #5 16% GROWTH: 77% Years
Slide 10: Highlights – Business and economic environment
Highlights – Business and economic environment. The CBN introduced a free-floating exchange rate system which led to a sharp depreciation of the Fx currency. This is likely to spur an increase in forex supply in the coming months and encourage unifications economic growth in the long term as investo
Slide 11: H1 2023 Highlights
H1 2023 HIGHLIGHTS A G G R E G AT E D S A L E S V O L U M E G R O W T H - 3 6 % . Delivering volume growth across our product and markets segments. • Sugar – 29.6% • Flour – 77% • Pasta – 11% • Rice divisions starting up @ N466M • Export sales 15% o Sustained other income @ N900M 11
Slide 12: H1 2023 Lowlights
H1 2023 LOWLIGHTS W I T H T H E U N E N D I N G D I S R U P T I O N S I N T H E B U S I N E S S C L I M AT E , W E C O N T I N U E T O H E D G E A G A I N S T R I S I N G C O S T. o Raw materials – 59% Cost: o Energy – 53% o S&D = 201% o Admin Expenses – 165% o Finance Cost – 54% “Whilst the impact
Slide 13: Driving through Sustainability
Driving through Sustainability. We remain committed to responsible production and environmental stewardship GHGe(KgC/ton): Water Economy (m3/ton): Air Quality (ppm): Noise Pollution (decibel): 2023 Actual: 249 2023 Actual: 2.61 2023 Actual: 0.39 2022 Actual: 83 2023 Target: 251 2023 Target: 3.51 202
Slide 14: Shareholders dashboard
Shareholders dashboard Sustaining value creation with strong performance. Share Price Growth Return on Equity: YTD:N 135.75 29.2% 108% 71.4% Gross Profit Margin Earning Per Share: ratio : 41.4% N5.29 34.2% 142.6% Net Profit Margins Current Ratio: 1.2X Debt to Equity Ratio: ratio: 29.6% 40.5% 27.5% 3
Slide 15: YTD 2023 Key achievements - highlights
YTD 2023 Key achievements - highlights ₦ Board declaration of N4.50 Dividend Share price growth @108% with current market cap at N2.40T Market expansion +70% vs same prior year Commercialized additional 720MTPA Flour Commercialized 200KMTPA Rice Mill. Rebranded products packs to be customer friendly
Slide 16: re sweetness
re sweetness in every grain m VAN PREMIUM WHEAT Like you, we put cur heart inte it
Slide 17: SECTION 3: Financial highlights
SECTION 3: Financial highlights 17
Slide 18: BUA Foods maintained decent double digits growth in H1 2023
BUA Foods maintained decent double digits growth in H1 2023 In thousands of naira (Group) H1 2023 H1 2022 Δ Revenue 320,930,303 168,854,513 90.63% Cost of Sales 188,097,329 116,788,996 61.05% Gross Profit 132,832,974 52,065,517 155% Gross Margin (%) 41.39% 30.83% 1,056bps Selling and distribution ex
Slide 19: Focused revenue growth management with aligned strategic actions
Focused revenue growth management with aligned strategic actions. +80% ₦196.5 billion ❑ Aggregate volume growth by 36% +90.6% ❑ Strategic price +154% adjustment to reflect ₦320.9bn ₦86 billion the rise in input cost ₦168.8bn ❑ Export sales impacting the West +47% African market ₦37.9 billion ❑ Volum
Slide 20: Effective management of cost across the business divisions
Effective management of cost across the business divisions, even as aggregate volume grew by 36% Inflationary Pressure Levers deployed to manage such pressure Aggressive sales strategy to average +59% reduce cost per tone Raw material Energy Sourcing mix for production +61% Middle-line cost optimiza
Slide 21: Delivering positive returns across key financial metrics
Delivering positive returns across key financial metrics Return on Equity EBITDA Operating Profit Profit After Tax H1 2021 16.4% CAGR ROE CAGR CAGR CAGR +25.99% H1 2022 +37.1% +39.8% +39.9% 17.02% H1 2023 29.18% ₦6649. ₦6649. ₦6649. 6bn 6bn 6bn Return on Asset ₦115.8bn ₦95.2bn ₦120.88b ₦46.7bn ₦39.3
Slide 22: We remain consistent to strengthening our balance sheet
We remain consistent to strengthening our balance sheet as we take advantage of emerging opportunities Strong total asset with Capital risk management by Continuous growth of Retained consistent growth Reducing Net Term Borrowing with Earnings improved Gearing Ratio CAGR CAGR CAGR +8.5% - 15.5% +18.
Slide 23: SECTION 4: 2023 Outlook
SECTION 4: 2023 Outlook 23
Slide 24: Outlook for 2023
Outlook for 2023: We remain commitment to deliver strong growth despite the headwinds. FY 2023 Growth Targets Grow Revenue – Exploiting additional Double digits Grow commercialized capacities of Flour, Rice and growth in Pasta to capture more market demands. Revenue We continue to drive and expand o
Slide 25: Thank You
THANK YOU Investor Relations Contact: Gabriel Fapojuwo | Investor Relations Manager BUA Foods Plc: PC 32, Churchgate Street,Victoria Island. Tel: +234 14610669, +234 8166723182 Contact Us: info@buafoodsplc.com | Email: customerservice@buafoodsplc.com | Website: www.buafoodsplc.com buafoods
Slide 26: Fortified
FORTIFIED WITH VITAMINS AND MICRO NUTRIENTS 8 3 3 ES i