Guinness Nigeria Plc · NSENG:GUINNESS
Guinness Nigeria — FY2013 Earnings Presentation
27 slides from Guinness Nigeria's earnings presentation, Sep 18, 2013
Slide 1: Guinness Nigeria Plc F13 Performance: Investor Briefing
DIAGEO \¥) GUINNESS NIGER GUINNESS NIGERIA PLC F13 PERFORMANCE: INVESTOR BRIEFING 18 September 2013
Slide 2: Presenters
Seni Adetu, Managing Director /CEO Lisa Nichols, Finance/Strategy Director Sesan Sobowale, Corporate Relations Director
Slide 3: Agenda
AGENDA ITEM PRESENTER SLIDE Introduction Seni Adetu - Company Overview Seni Adetu 4 Market and Performance Overview Seni Adetu 8 Financial Performance Lisa Nichols 11 Highlights of the year Seni Adetu 16 Strategic priorities Seni Adetu 24 Conclusions Seni Adetu 26 Q&A Sesan Sobowale 28
Slide 4: Company Overview
DIAGEO \¥) GUINNESS NIGER COMPANY OVERVIEW ube JINVSHARP y nes / x UNV SHARB
Slide 5: Our Company
OUR COMPANY Guinness Nigeria is a part of Diageo – the world’s foremost premium alcoholic drinks company. We have been in Nigeria since 1962 with a strong pedigree operating from four sites - 2 in Lagos (Ogba & Ikeja), Benin and Aba. Strong portfolio diversity including alcoholic and non-alcoholic b
Slide 6: Our Brands
OUR BRANDS We have a diverse portfolio of brands that are adored by Nigerian consumers. These include: STOUT LAGER RTD NON-ALCOHOLIC - Harp Lager - Malta Guinness - Smirnoff Ice - Guinness Foreign Extra Stout - Malta Guinness Low - Dubic Lager - Snapp Sugar - Guinness Extra Smooth - Satzenbrau - Top
Slide 7: Our Ambition
OUR AMBITION Guinness Nigeria Plc is the best performing, most trusted and respected consumer products company in Nigeria Superior Total Most reputable in Employer of Choice Shareholder the Community Returns
Slide 8: Market & Performance Overview
MARKET & PERFORMANCE OVERVIEW
Slide 9: Economic indicators, opportunities and challenges
Economic indicators: • GDP has been growing and averaging 6% - 8% in past two years • Nigeria to remain in top quartile of GDP growth from 2011-2016 • Inflation Rate averaging 10% Y.O.Y Opportunities: Challenges: • Rapid growth of emerging middle class: (20m living • Pressured Consumer Discretionary
Slide 10: Key Drivers of Performance
KEY DRIVERS OF PERFORMANCE Performance Overview: Growth % Net Revenue 5% Operating Profit – 6% Profit After Tax -17% Market softness: De-prioritization of beer by consumers, declining discretionary income , down trading leading to faster growth of value brands, government spending behind plan,
Slide 11: Financial Performance
DIAGEO \¥) GUINNESS NIGER FINANCIAL PERFORMANCE ubic JINVSHARP y nes / x UNV SHARB
Slide 12: GN Plc F13 Results – Comprehensive Income
GN PLC F13 RESULTS – COMPREHENSIVE INCOME Q4 F13 Growth FY F13 Growth Nbillion % Nbillion % Gross Revenue 36.5 7% 131.4 4% Net Revenue 34.0 8% 122.5 5% Cost of Sales (18.2) 13% (66.4) 8% Gross Profit 15.8 3% 56.1 2% Marketing & Distr. (6.6) 18% (26.0) 6% Admin Costs (2.9) 28% (10.3) 9%
Slide 13: GN Plc F13 Results – Comprehensive Income
GN PLC F13 RESULTS – COMPREHENSIVE INCOME Q4 F13 Growth FY F13 Growth Nbillion % Nbillion % Operating Profit 6.8 -9% 20.6 -6% Financing charges (1.1) 52% (3.6) 138% PBT 5.8 -15% 17.0 -17% Tax (1.3) -21% (5.1) -17% PAT 4.5 -13% 11.9 -17% K K EPS 299 -14% 793 -18%
Slide 14: Drivers of Profit Before Tax
DRIVERS OF PROFIT BEFORE TAX Drivers of PBT decline F13 vs. LY (Nbillion) 6.9 -0.9 -5.1 -1.4 20.4 -0.8 Capacity expansion 0.1 -2.1 depreciation 17.0 Expansion investment 2012 Price Volume CoGS Mktg & Admin Other Financing 2013 PBT distr. costs income PBT 1
Slide 15: GN Plc F13 Results - Financial Position
GN PLC F13 RESULTS - FINANCIAL POSITION FY F13 FY F12 Movt Nbillion Nbillion Nbillion Non-Current Assets 88.8 77.2 11.6 Inventories 12.4 13.2 (0.8) Receivables 16.6 10.8 5.8 Cash 3.2 4.8 (1.6) Total Assets 121.1 106.0 15.1 Current Liabilities (51.3) (45.2) (6.1) Non-Current Liabilities (23.7) (22.2)
Slide 16: Highlights of F13
DIAGEO \¥) GUINNESS NIGER HIGHLIGHTS OF F13 ube JINVSHARP y nes / x UNV SHARB
Slide 17: Highlights of F13
HIGHLIGHTS OF F13 Route to Brands Innovation Supply Reputation People Consumer
Slide 18: Highlights - Brands
HIGHLIGHTS - BRANDS Guinness Harp & Dubic Malta Guinness Smirnoff Ice Promoting healthier living EPL broadcast Sponsorship Competitive pricing Fly With The Eagles Campaign Distribution drive and AFCON Campaign and consumer experience Jersey Tour Made of More campaign Partnership with
Slide 19: Highlights - Innovation
HIGHLIGHTS - INNOVATION H1 H2 Malta Guinness Low Sugar Snapp Launched nationally in May F12 Rolled out nationally F13 saw weighted distribution grow by Refreshed advertising double digits Snapp Launched in Lagos and 4 other cities – Abuja, Dubic Benin, Port Harcourt and Calabar • New green
Slide 20: Highlights - Route to Consumer
HIGHLIGHTS - ROUTE TO CONSUMER Cold & Events GDC Branding Sales coverage Guinness Distribution Centres Additional sales vans (GDC) driving rural re- Maximised opportunity in Key distribution Account. Roll out progressing well Increased visibility via Kitting of Bar men Investments in pro
Slide 21: Highlights - Supply
HIGHLIGHTS - SUPPLY Gas / Diesel Generator CO₂ Plant and and Boilers Loading capacity 21
Slide 22: Our Work in the Community
OUR WORK IN THE COMMUNITY Quality & Safety Responsible Drinking & Community Investments Harp Lager Beer & Malta Guinness •Project DIY: skills training •World AIDS campaign •WOL in Ago Ibami and Oza Nogogo won the 2012 Monde Gold Quality for children's in the •Motor Park Health and Safety •Relief m
Slide 23: Highlights – People
HIGHLIGHTS – PEOPLE Talent Development •We have secured more local leaders externally to strengthen our leadership pipeline Eyitemi Taire Afeez Ajibowu Patrick Awotwi •We have made internal movements and promotions to fill vacancies created to support our growth ambitions Gender diversity of leade
Slide 24: Strategic Priorities
STRATEGIC PRIORITIES Strengthen and accelerate our premium core brands Innovate at scale to meet new consumer needs Build and then constantly extend our advantage in Route to Consumer (RtC) Drive out cost to invest in growth Guarantee our plans with the right people and capability
Slide 25: Conclusion
CONCLUSION • In F13 we delivered a 5% growth in revenue in a challenging market with constrained consumer discretionary income, security concerns, highly competitive RtC and increased competition • The industry has experienced a decline in the last c.2years but is expected to rebound in the near to
Slide 26: DIAGEO 1)
DIAGEO 1) GUINNESS NIGERIA ie [Br DubicWINNESHA RP a
Slide 27: DIAGEO \¥)
DIAGEO \¥) GUINNESS INN! SHARP