Bua Foods Plc · NSENG:BUAFOODS
Bua Foods — 9M 2022 Earnings Presentation
40 slides from Bua Foods's earnings presentation, Nov 10, 2022
Slide 1: Investors & Analyst Conference Call Presentation – 9M 2022
BUA FOODS PLC Investors & Analyst Conference Call Presentation – 9M 2022 NOVEMBER 10 , 2022 Page 1
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 Engr. Ayodele Abioye (MNSE) Managing Director Mr. Abdulrasheed Olayiwola ED / Chief Financial Officer Page 4
Slide 5: Contents
Contents 1.0 Company Overview 2.0 Business Highlights 3.0 Strategy Updates 4.0 Financial Performance 5.0 Outlook Page 5
Slide 6: Company Overview
1 Company Overview
Slide 7: Our philosophy is driven by our passion to nourish lives
Our philosophy is driven by our passion to nourish lives Page 7
Slide 8: A leading foods business with well diversified and scalable operations
A leading foods business with well diversified and scalable operations, producing competitive products Installed capacity and utilisation Installed Capacity Capacity Divisions Capacity3 Expansion Utilisation 5 8 2 #2 Sugar 1.5mn MTpa 220,000 MTpa Plants across Wholly Largest sugar Business 720,000 t
Slide 9: Strategic locations across Nigeria to capture opportunities
We are structured to operate from strategic locations across Nigeria to capture opportunities LASUCO Sugar Company Rice Mill (North West) Oil Mill (North West) Industrial Complex Limited (“LASUCO Sugar”) (South South) (North Central) Oil Mill Rice Mill Sugar Refinery Lafiagi Sugar Plantation Sugar R
Slide 10: Our Journey so far
Our Journey so far…! Quarter 1 Quarter 2 Quarter 3 Page 10
Slide 11: BUA Foods: Key Facts and Highlights
BUA Foods: Key Facts and Highlights Page 11
Slide 12: A business in constant evolution, currently in 3rd phase of growth
We are a business in constant evolution and currently in a 3rd phase of GROWTH. 3 2 Integration 1 Establishment Commercial • Restructured - BUA Foods Plc • (BUA Sugar, BUA Rice, IRS Flour & Pasta, & Edible • Nigeria Oil Mill & BUA Oil Oils) • BUA Sugar Refinery • • LASUCO Market expansion • BUA Rice
Slide 13: Business Highlights (Operations & Sustainability)
Business Highlights 2 (Operations & Sustainability)
Slide 14: Business Performance: optimizing asset utilization
Business Performance. We are optimizing our asset utilization despite supply chain challenges 9M - Volume(mt) Plant Utilization 32% 644,871 Pasta 46% 705,650 83% Flour 48% -9.0% y-o-y 48% Sugar 57% 2022 2021 Q3 Q2 Page 14
Slide 15: Business Performance: sustaining growth despite headwinds
Business Performance. We are sustaining growth despite economic headwinds Revenue PAT 17% +17.2% ₦289.8bn 23% +20.2% y-o-y +38.1% 63% Sugar +30.9% Sugar Flour Pasta Flour +48% Pasta Page 15
Slide 16: Business Performance: cost elements per ton
Business Performance. With the achievement of aggregate growth on revenue at 20%, we continue to optimize key cost element largely driven by an unrelenting economic headwinds Item Cost per ton Raw Materials N269,100 +26.7% Energy N12.80 +2.4% Factory Expenses N13.43 +24.6% Selling & Distribution N16
Slide 17: Business Performance: cost elements per ton
Business Performance. With the achievement of aggregate growth on revenue at 20%, we continue to optimize key cost element largely driven by an unrelenting economic headwinds Item Cost per ton • Raw Materials N269,100 +26.7% • Energy N12.80 +2.4% • Factory Expenses N13.43 +24.6% • Selling & Distribu
Slide 18: Driving through sustainability: CO2 emission
Driving through sustainability We remain committed to responsible production and environmental stewardship CO2 Emission Q3: 2022 - 152.07 Kg CO2 e/Ton Product Q2 2022- 228.53kg CO2 e/Ton product Water Reduction Noise Pollution Q3 2022 - 2.17 m3/Ton Product Q3 2022 - 78.40 Decibel(dB) Q2 2022 - 2.51
Slide 19: Driving through sustainability
Driving through sustainability We remain committed to impacting socially with our stakeholders especially our host communities. Page 19
Slide 20: Driving through sustainability
Driving through sustainability We remain committed to impacting socially with our stakeholders especially our host communities.
Slide 21: Strategy Updates
3 Strategy Updates
Slide 22: Clear strategic priorities
Clear strategic priorities Short to Medium Term Long Term 1 Improve Market 2 Boost Capacity Expansion of Expansion of Share across all through Operating Market Share Five Business Expansion of Platforms and Products Funding Base Divisions ✓ Flour & Pasta 1 2 ✓ Rice ✓ Export Market Improve 4 Improve
Slide 23: Strategic Updates- Expansion
Strategic Updates- Expansion We remain focus on expanding our capacities across our divisions to further growing our market share Our integrated plant of Flour and Pasta with respective capacity of 700,000 MTPA and 250,000MTPA Page 23
Slide 24: Strategic Updates- Expansion
Strategic Updates- Expansion We remain focus on expanding our capacities across our divisions to further growing our market share Our integrated plant of Flour and Pasta with respective capacity Our integrated plant of Flour and Pasta with respective capacity ofof700,000 700,000MTPA MTPAandand250,00
Slide 25: Rice division to be upstream by end of Q4 2022
The Rice division operation will be upstream by end of Q4 2022 and fully commercialize in Q1 2023 Strategic Updates- Expansion We remain focus on expanding our capacities across our divisions to further growing our market share Page 25
Slide 26: Rice division to be upstream by end of Q4 2022
The Rice division operation will be upstream by end of Q4 2022 and fully commercialize in Q1 2023 Strategic Updates- Expansion We remain focus on expanding our capacities across our divisions to further growing our market share Page 26
Slide 27: Rice division to be upstream by end of Q4 2022
The Rice division operation will be upstream by end of Q4 2022 and fully commercialize in Q1 2023 Strategic Updates- Expansion We remain focus on expanding our capacities across our divisions to further growing our market share Page 27
Slide 28: Sugar backward integration program
Strategic Updates- Expansion We are focused on accelerating our strategy on local sourcing of raw material through our sugar backward integration program The integrated factory is targeted to be upstream by 2023 Page 28
Slide 29: Integrated factory components
Strategic Updates- Expansion We are focused on accelerating our strategy on local sourcing of raw material through our sugar backward integration program ❑ The integrated factory comprises of: 1. Sugar cane crushing & Milling 2. Juice processing 3. Sugar refinery 4. Industrial ethanol plants Page 29
Slide 30: Strategic Updates- Market Expansion
Strategic Updates- Market Expansion Our export strategy is driving our market expansion across the African region and beyond. While our retail packs extensions is progressing Page 30
Slide 31: Continuing to strengthen our balance sheet
Continuing to strengthen our balance sheet Page 31
Slide 32: Financial Performance
3 Financial Performane
Slide 33: Double digit growth and strong performance in 9M 2022
BUA Foods maintained double digit growth and strong performance in 9M 2022 Group Company In thousands of naira 9M 2022 9M 2021 Δ 9M 2022 9M 2021 Δ Revenue 289,819,825 241,078,629 20.2% 221,650,393 166,001,829 33.5% Cost of Sales 195,641,326 158,825,185 23.2% 159,203,255 109,825,155 45.0% Gross Profi
Slide 34: Underlying revenue growth from pricing, mix and export sales
Underlying revenue growth from pricing, mix and export sales strategy +17.0% ❑ Strategic Price ₦180.9 billion adjustment to reflect +20.2% the rise in input cost ❑ Export sales impacting ₦289.8bn the west African market for growth ₦241.1bn +38.0% ₦66.2 billion ❑ Managing volume mix dynamics to meet
Slide 35: Effective management of costs across business divisions
Effective management of costs across the business divisions, despite volumes decline. Inflationary Pressure Levers deployed to manage such pressure Revenue growth management – +26.7% volume planning, pricing actions to reflect market realities +23.2% +13.9% Raw material & FX sourcing dynamics -6.2%
Slide 36: Positive impact of growth strategy
Positive impact of growth strategy EBITDA Operating Profit Profit after Tax +2.0% +15.1% +17.2% ₦86.4bn ₦79.3bn ₦68.7bn ₦84.6bn ₦68.9bn ₦58.6bn 9M 2021 9M 2022 9M 2021 9M 2022 9M 2021 9M 2022 9M 2021 33.3% ROE (%) 9M 2021 10.9% ROA(%) +400bps +100bps 9M 2022 9M 2022 9.9% 29.3% Page 36
Slide 37: Continuing to strengthen our balance sheet
Continuing to strengthen our balance sheet Strong Net Cash from Operations Reducing Net Term Borrowing within Continuous growth of is a Catalyst for Growth with Flexibility to Manage Liquidity Retained Earnings +3.0% +337% -11% ₦218.5bn ₦198.4bn ₦103.7bn ₦194.4bn ₦192.6bn ₦23.7bn ₦198.4bn 9M 2021 9M
Slide 38: Summary & Outlook
5 Summary & Outlook
Slide 39: Summary and outlook
Summary and outlook Our 2022 guidance is driven by topline growth in line with our growth model FY 2022 Growth Targets ❑ We are progressing our capacity Double digits expansion across our divisions. growth in Revenue ❑ Our export strategy is on course, and we are positioning to gain more market shar
Slide 40: Ly» AA
Ly» AA