Zambeef Products Plc · LSE:ZAM
Zambeef Products — FY2021 Earnings Presentation
21 slides from Zambeef Products's earnings presentation, September 2021
Slide 1: Financial Results for the year ended 30 September 2021
Financial Results for the year ended 30 September 2021
Slide 2: Table Of Contents
Table Of Contents Zambeef at a Glance 3 Operating Environment 4 Macro-Economic Highlights 5 Financial Highlights 6 Divisional Analysis 7 Retail Channel Analysis 12 Segmented P&L 13-16 Abridged Financials 17-19 Strategic Objectives 20 Outlook 21
Slide 3: Zambeef at a glance
Zambeef at a glance Zambeef Brands A robust business model of vertical integration Cropping One of the largest row cropping operations in Zambia; Double cropping of irrigated land means Zambeef Network Zambeef plants 20,696 ha p.a Stockfeed The leading stockfeed producer in Zambia, operating two fee
Slide 4: Operating Environment
Operating Environment ECONOMY INPUTS PRODUCTS ZMW / USD Standard Beef (K) Beef (All) 22% 2021: 20.85 44% 2021: 35.90 /Kg 61% 2021: K44.4 /Kg 2020: 16.58 2020: 24.92 /Kg 2020: K27.6 /Kg Inflation Pork 70kg+ (K) Chicken IQF 54% 2021: 21.73% 67% 2021: 50.0 /Kg 27% 2021: K39.9 /Kg 2020:14.07% 2020: 30.0
Slide 5: Macro-Economic Highlights
Macro-Economic Highlights Elevated Investor Sentiment, FX Recovery and a Debilitating Third Wave Business Environment USD Mid-Rate (in ZMW) • High inflation and the subsequent erosion of -16% 22.64 purchasing power from consumers characterized the business environment as average Inflation increased
Slide 6: Financial Highlights
Financial Highlights Operational Growth Driven by Revenue growth and cost efficiencies ZMW ‘000 USD ‘000 Revenue +28% -2% • Revenue growth of 28% in Kwacha terms on prior year driven by pricing as demand for products held, despite supply challenges and input cost pressures 239,648 across most produc
Slide 7: Divisional Highlights (ZMW'000)
Divisional Highlights (ZMW’000) Retail & CCFP Stockfeed Cropping Other Businesses Revenue Revenue Revenue Revenue +30% +31% +26% +69% 3,254,929 908,783 1,747,742 203,609 2,512,758 343,391 719,025 1,331,965 2020 2021 2020 2021 2020 2021 2020 2021 • CCFP performance was • Shortage of day-old chicks •
Slide 8: Group Profit Analysis (ZMW'000)
Group Profit Analysis (ZMW’000) Others Others 70,579 48,676 5% 4% Retail & Cropping Cropping CCFP 345,391 Retail & 266,405 644,653 YoY Growth 22% CCFP 22% 53% Retail & CCFP 28.4% 827,447 Gross Profit 54% Gross Profit Stockfeed 17.4% 2021 2020 Cropping 29.6% 1,543,853 1,215,622 Others 45.0% Total 27.
Slide 9: Group Profit Analysis (USD'000)
Group Profit Analysis (USD’000) Others Others 3,342 3,010 5% 5% Retail & CCFP Cropping 39,867 16,354 Retail & 54% YoY Growth 22% Cropping CCFP 16,475 Retail & CCFP -1.7% Gross Profit 39,178 Stockfeed -10.1% 22% Gross Profit 2021 54% 2020 Cropping -0.7% 73,099 75,178 Others 11.0% Total -2.8% Stockfee
Slide 10: Headline Earnings Waterfall (ZMW'000)
Headline Earnings Waterfall (ZMW’000) 456,771 (189,441) 2021 23,332 (115,282) (3,358) 31,949 168,823 (35,148) EBITDA Depreciation, Share of loss Exchange gains Finance Costs Taxation Charge Profit from asset Total profit for the Amortisation and equity investment held for sale period Adjustments 415
Slide 11: Financial Overview – P&L
Financial Overview – P&L 2021 2020 2021 2020 ZMW’000 ZMW’000 %∆ USD’000 USD’000 %∆ Revenue 4,974,351 3,875,104 28.4% 235,528 239,648 -1.7% Cost of Sales (3,503,635) (2,659,482) 31.7% (165,892) (164,470) 0.9% Gross profit 1,470,716 1,215,622 21.0% 69,636 75,178 -7.4% Administrative Expenses (1,150,65
Slide 12: Retailing Revenue Channel Analysis-Zambia (ZMW'000)
Retailing Revenue Channel Analysis-Zambia (ZMW’000) 13% +20% 2021 2020 577,899 570,159 +28% 509,548 482,442 476,885 +13% 402,465 376,717 357,119 +8% 255,411 237,353 Zambeef Outlets Zambeef Macros Novatek Shoprite Other 2021 2020 Other Other 11% Zambeef Zambeef 12% Outlets Outlets 25% 26% Shoprite Sh
Slide 13: Retail & Cold Chain Food Products P&L
Retail & Cold Chain Food Products P&L 2021 2020 2021 2020 Highlights ❑ Favourable prices across protein ZMW'000 ZMW'000 USD'000 USD'000 categories resulted in increased Retail & CCFP 3,254,929 2,512,758 29.5% 154,116 155,396 -0.8% revenue for the CCFP despite supply Gross Profit 827,447 644,653 28.4
Slide 14: Stockfeed P&L
Stockfeed P&L 2021 2020 2021 2020 Highlights ZMW'000 ZMW'000 USD'000 USD'000 ❑ Revenue growth driven by pricing Revenue 1,747,742 1,331,965 31.2% 82,753 82,373 0.5% ❑ Feed plant operating efficiently. Gross Profit 300,436 255,888 17.4% 14,225 15,825 -10.1% Pelleting capacity remains a Overheads (153
Slide 15: Cropping P&L
Cropping P&L 2021 2020 2021 2020 ZMW'000 ZMW'000 USD'000 USD'000 Highlights Revenue 935,904 719,025 30.2% 44,314 44,467 -0.3% ❑ Zambia experienced a good Gross Profit 345,391 302,977 14.0% 16,354 18,736 -12.7% rainfall season Overheads (234,033) (195,661) -19.6% (11,081) (12,100) -8.4% ❑ Cropping re
Slide 16: Other divisions P&L
Other divisions P&L 2021 2020 2021 2020 ZMW'000 ZMW'000 USD'000 USD'000 Highlights Revenue 343,391 203,609 68.7% 16,259 12,592 29.1% ❑ Shoe sales grew by 47% to Gross Profit 70,579 48,676 45.0% 3,342 3,010 11.0% 102,704 pairs compared to the Overheads (31,985) (23,450) 36.4% (1,514) (1,450) 4.4% 70,
Slide 17: Abridged Balance Sheet
Abridged Balance Sheet FY 21 FY 20 FY 19 FY 21 FY 20 FY 19 ZMW'000s ZMW'000s ZMW'000s USD '000s USD '000s USD '000s Non – current assets 3,331,337 3,484,684 3,077,526 199,004 173,023 233,146 Current assets 2,170,917 1,710,524 1,446,032 129,683 84,932 109,547 Total assets 5,502,254 5,195,208 4,523,55
Slide 18: Debt Analysis for September 2021
Debt Analysis for September 2021 FY-21 HY-21 FY-20 ZMW'000 ZMW'000 ZMW'000 Vs HY-21 Vs FY-20 Highlights Interest bearing liabilities 406,264 483,392 517,117 -15.96% -21.44% ❑ The increase at half-year Obligations under finance lease 19,671 26,688 43,009 -26.29% -54.26% reflects the seasonal working
Slide 19: Abridged Cashflow Statement
Abridged Cashflow Statement FY 21 FY 20 FY 19 FY 21 FY 20 FY 19 ZMW'000s ZMW'000s ZMW'000s USD '000s USD '000s USD '000s Profit/(Loss) before taxation 203,971 (22,673) 38,653 9,658 (1,402) 3,138 EBITDA, Fair value adjustments and Forex 456,771 415,405 224,904 21,627 25,689 18,255 Net cash inflow/(ou
Slide 20: Strategic Objectives
Strategic Objectives During the year, Our board embarked on five year strategic refresh process for the Group. The strategy developed will position the Group to tackle the challenges ahead while capitalising on opportunities presented The following pillars will underpin the strategy Focus and streng
Slide 21: Operating Environment | Outlook
Operating Environment | Outlook Indicators 2018 2019 2020 2021 2022 2023 GDP Growth % 3.7 2.0 -4.2 2.4% 3,0 6.4 MPC % 9.75 11.5 8 8.5 7.5 7.5 Inflation % 7.9% 10.8% 15.7% 22.6% 15.5% 11.9% ZMW per $ 10.45 15 20.0 16.5 15.6 15 Threats • The Zambian economy is expected to grow by 1% in 2021 and 2% in