Guinness Nigeria Plc · NSENG:GUINNESS
Guinness Nigeria — Q3 2013 Earnings Presentation
26 slides from Guinness Nigeria's earnings presentation, May 13, 2013
Slide 1: Q3 F13 Performance Investor Briefing
Guinness Nigeria Plc Q3 F13 Performance Investor Briefing 13 May 2013 DIAGEO <2 GUINNESS NIGERIA
Slide 2: Outline of Q3 F13 Performance Briefing
Outline of Q3 F13 Performance Briefing Slide Contents Presenter 3 Strategic overview Seni Adetu 8 Performance summary Seni Adetu 11 Highlights of the year so far Seni Adetu 18 Q3 F13 financial results Lisa Nichols 23 Conclusions / outlook Seni Adetu 26 Q&A Sesan Sobowale DIAGEO 2
Slide 3: Strategic overview
Strategic overview DIAGEO = GUINNESS
Slide 4: Our Company
Our Company Strong portfolio diversity including alcoholic and non-alcoholic beverages covering a wide range of consumer segments Commitment to significant investment to deliver long-term growth Major investments in capacity expansion Business doubled in the past 4 years Largest Guinness m
Slide 5: Our growing and diverse portfolio covers a wide range of consumer segments
Our growing and diverse portfolio covers a wide range of consumer segments Beer RTD Malt Premium Mainstream Emerging DIAGEO 5
Slide 6: Our Vision
Our Vision Guinness Nigeria Plc is the most iconic and admired consumer goods company in Nigeria Superior Total Most reputable Employer of Shareholder in the Choice Returns Community Guinness Nigeria will have the no. 1 brand in every segment in which we compete supported by an advantaged Route to C
Slide 7: Long term strategic intent
Long term strategic intent Consumer “We have the most adored adult drink brands for every occasion’’ “We are the preferred partner to our customers delivering profitable Customer arms-reach availability” “Our people are capable and inspired to deliver exceptional Capability performance everyday” “Ou
Slide 8: Performance Summary
Performance Summary DIAGEO 8
Slide 9: Current market / structural context
Current market / structural context Economic environment Macro economic environment relatively stable Inflationary pressure Some interest rate reduction, but levels still high Increasing tax burden Consumer trends Reducing discretionary income Prioritising spend on essential items Secu
Slide 10: Q3 F13: Performance overview
Q3 F13: Performance overview Q3 F13 YTD F13 Growth % Growth % Net Revenue 1% 4% Operating Profit -7% -4% PBT -25% -17% DIAGEO 10
Slide 11: Highlights of the year so far
Highlights of the year so far Brands Innovation Route to Consumer Supply People CSR DIAGEO 11
Slide 12: Highlights - Brands
Highlights - Brands Guinness Harp Malta Guinness Smirnoff Ice AFCON Campaign and Bus branding Jersey Tour New OOH EPL broadcast Competitive pricing Sponsorship Distribution drive Fly With The Eagles Campaign Made of More campaign Improved media and OOH Distribution drives visibil
Slide 13: Highlights - Innovation
Highlights - Innovation H1 H2 Snapp Snapp Launched in Lagos and 4 other cities – Rolled out Abuja, Benin, Port Harcourt and Calabar nationally Focus on advertising, sampling and Refreshed distribution build advertising Snapp sleek cans launched in Dec 2012 Dubic • New green bottle • Region
Slide 14: Highlights - Route to Consumer
Highlights - Route to Consumer Cold & Events GDC Branding Sales coverage Guinness Distribution Increased sales areas Centres (GDC) driving Additional van sales staff rural re-distribution Wholesaler management Roll out progressing well New sales and customer incentive schemes Investmen
Slide 15: Highlights - Supply
Highlights - Supply Warehousing & Bottle sorting and Loading capacity packaging DIAGEO 15
Slide 16: Highlights - People
Highlights - People Exceptional Talent Development Employee Engagement Performance Culture GN Leadership team strengthened with addition of Improved performance local external hires and internal monitoring driving Seni Adetu visibility of outcomes Cephas Afebuameh moves Managing Director Supply
Slide 17: Highlights - CSR
Highlights - CSR Responsible Drinking & Community Investments •Ikeja Golf Tournament 2013 •Won award as the Best Private Sector company •Responsible Drinking campaign partnering Sponsorship in March bringing c supporting the water sector (Min of Water Res) with Journalists and Actors 300 golfers Pan
Slide 18: Q3 F13 Financial results
Q3 F13 Financial results DIAGEO 18
Slide 19: GN Plc Q3 F13 results - Comprehensive Income
GN Plc Q3 F13 results - Comprehensive Income Q3 F13 Growth YTD F13 Growth Nbn % Nbn % Gross Revenue 29.2 0% 94.9 3% Net Revenue 27.3 1% 88.4 4% Cost of Sales (15.6) 1% (48.2) 7% Gross Profit 11.7 0% 40.3 1% Marketing & Distrib'n (6.6) 0% (19.4) 2% Admin Costs (2.4) -2% (7.4) 3% Operating Profit 2.6
Slide 20: GN Plc Q3 F13 results - Comprehensive Income
GN Plc Q3 F13 results - Comprehensive Income Q3 F13 Growth YTD F13 Growth Nbn % Nbn % Operating Profit 2.6 -7% 13.8 -4% Financing costs (0.8) 101% (2.6) 210% PBT 1.8 -25% 11.2 -17% Tax (0.6) -24% (3.6) -17% PAT 1.2 -26% 7.6 -18% N N EPS 0.8 -27% 5.1 -19% DIAGEO 20
Slide 21: Drivers of Profit before tax
Drivers of Profit before tax YTD F13 vs. YTD F12 (Nbillion) 6.5 3.1 3.0 13.6 0.3 0.2 0.5 1.7 11.2 YTD F12 Price Volume COGS Mktg & Admin Other Financing YTD F13 PBT Distn Costs Income PBT DIAGEO 21
Slide 22: GN Plc Q3 F13 results - Financial Position
GN Plc Q3 F13 results - Financial Position Q3 F13 YTD F13 Mvt Nbn Nbn Nbn Non-Current Assets 89.0 68.0 21.0 Inventories 16.8 16.8 (0.0) Receivables 23.0 16.7 6.3 Cash 3.0 3.7 (0.7) Total Assets 131.9 105.3 26.6 Current Liabilites (66.4) (52.7) (13.7) Non-Current Liabilities (23.6) (18.4) (5.2) Equit
Slide 23: Conclusions / outlook
Conclusions / outlook DIAGEO 23
Slide 24: Conclusion
Conclusion Market has been challenging, but we are holding our own in market share terms We remain confident in our business strategy: Upweight investment in core brands to outperform competition Innovate/renovate profitably and sustainably Transform our Route to Consumer Optimize our second
Slide 25: We feel very positive about the future of GN
We feel very positive about the future of GN Encouraging long-term prospects for the consumer economy We have strong consumer brands with strong brand equities We still have significant share growth potential We have a proven business model which is highly cash generative We are investing
Slide 26: Q & A
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