Uac Of Nigeria Plc · NSENG:UACN
Uac Of Nigeria — H1 2021 Earnings Presentation
23 slides from Uac Of Nigeria's earnings presentation, August 2021
Slide 1: UAC of Nigeria PLC H1 2021 Results
UAC of Nigeria PLC H1 2021 Results August 2021 Fola Aiyesimoju – Group Managing Director Funke Ijaiya-Oladipo – Group Finance Director
Slide 2: Disclaimer
Disclaimer 2 This presentation contains forward-looking statements which reflect management's expectations regarding UAC of Nigeria PLC's (“UAC”, the “Company” or “HoldCo”) future growth, results of operations, performance, business prospects, operating markets and opportunities. Wherever possible,
Slide 3: Contents
Contents 3 Operating context 4 Performance highlights 7 Conclusion 15 Appendix 1: Operating segment overview 17 Appendix 2: Additional financial information 22
Slide 4: Operating context
Operating context
Slide 5: Low growth, rising inflation, and currency under pressure
Low growth, rising inflation, and currency under pressure… 5 Real GDP Growth (%) Exchange Rate ₦:$ 2.3% 2.6% 2.1% 2.1% 1.9% Parallel rate CBN rate 0.5% 500 0.1% 450 400 350 300 250 200 150 (3.6%) 100 50 0 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jan-20 Apr-20 Apr-21 Feb-20 May-20 Sep-2
Slide 6: With escalation of key production input costs
….with escalation of key production input costs 6 Animal Feed Corn Soya Bean Resin Titanium Dioxide Paints Food 276 207 211 120 100 100 100 100 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 Flour Vegetable Oil Skimmed Milk Sugar 146 315 202 198 100 100 100 100 H1 2020 H1 2021 H1 20
Slide 7: Performance highlights
Performance highlights
Slide 8: H1 2020 versus H1 2021: Key reporting changes
H1 2020 versus H1 2021: Key reporting changes 8 Overview • There are two key reporting differences from H1 2020 to H1 2021 • UAC recorded a N944 million profit from discontinued operations with no comparable event for H1 2021 • Corporate action relating to MDS Logistics Limited (sale of 8% stake) re
Slide 9: Income statement
Income statement 9 ₦ mn, unless otherwise stated Q2 20212 Q2 20201 D% H1 20212 H1 20201 D% FY 20203 FY 20193 D% Revenue 24,478 17,085 43.3% 46,499 36,633 26.9% 81,358 79,202 2.7% Gross Profit 4,313 2,759 56.3% 8,324 6,993 19.0% 15,990 16,627 (3.8%) Gross Profit Margin (%) 17.6% 16.2% 147 bps 17.9% 1
Slide 10: Performance Snapshot – H1 2021
Performance Snapshot – H1 2021 10 Revenue Profit Before Tax N mn H1 2021 H1 2020 D% N mn H1 2021 H1 2020 D% Animal Feeds & Other Edibles 28,260 24,922 13% Animal Feeds & Other Edibles 521 (10) n/m Paints 6,789 4,259 59% Paints 763 826 (8%) Packaged Food & Beverages 11,903 8,180 46% Packaged Food & B
Slide 11: Performance Snapshot – Q2 2021
Performance Snapshot – Q2 2021 11 Revenue Profit Before Tax N mn Q2 2021 Q2 2020 D% N mn Q2 2021 Q2 2020 D% Animal Feeds & Other Edibles 14,244 12,489 14% Animal Feeds & Other Edibles 171 (22) n/m Paints 4,219 1,556 171% Paints 442 194 127% Packaged Food & Beverages 6,002 3,464 73% Packaged Food & B
Slide 12: Continued focus on efficiency in spite of cost escalation
Continued focus on efficiency in spite of cost escalation 12 Q2 Operating Expenses Trend for Operating Segments: Opex / Sales (%) Q2 2020 Q2 2021 31.7% 29.3% 24.9% 23.3% 24.0% 17.2% 9.5% 7.3% Animal feeds Paints Food and beverages QSR Commentary • Improvement in Opex/Sales across all operating platf
Slide 13: Financial Position – June 2021
Financial Position – 30 June 2021 13 Summary Balance Sheet Working Capital N mn Jun-21 Dec-20 D% N mn Jun-21 Dec-20 D% Non current Assets 37,768 40,986 (7.9%) Inventory 32,342 20,123 60.7% Current Assets 59,537 50,912 16.9% Trade Receivables 1,682 2,701 (37.7%) Other Assets 3,830 269 1,321.8% Trade
Slide 14: Increase in debt largely working capital for Animal Feeds segment
Increase in debt largely working capital for Animal Feeds segment 14 In Naira millions Group debt Inventory 17,315 32,342 N19 bn increase; N14 bn increase; N13 N18 bn of increase bn of increase due to due to Animal Feeds Animal Feeds segment segment 13,324 2,977 H1 2020 H1 2021 H1 2020 H1 2021 Inter
Slide 15: Conclusion
Conclusion
Slide 16: Conclusion
Conclusion 16 • In H1 2021, UAC recorded 27% revenue growth, 105% increase in operating profit, and 25% increase in profit before tax • We will continue to focus on driving growth in our core operating platforms ➢ Animal Feeds and Edible Oils: Investing in higher margin oil and dog food segments. Dr
Slide 17: Appendix 1: Operating segment overview
Appendix 1 Operating segment overview
Slide 18: Snapshot of the animal feeds segment
Snapshot of the animal feeds segment 18 Overview Value creation Grand Cereals Limited • Expansion of oil capacity (higher margin product) • Private company; 71% ownership Margins • Improve procurement processes to leverage • Produces animal feed, cereals, oils and dog food combined scale for direct
Slide 19: Snapshot of the paints segment
Snapshot of the paints segment 19 Overview Value creation Chemical and Allied Products PLC • Public company listed on The NGX; 56.54% ownership • Aggressive footprint expansion Expand • Expand mid-tier offering • Recently concluded merger with Portland Paints (1 July 2021) Range • Grow industrial ca
Slide 20: Snapshot of the packaged food & beverages segment
Snapshot of the packaged food & beverages segment 20 Overview Value creation • UAC Foods is a leading packaged food and beverages • Invest in greenfield state of the art factory company • Implement plans to optimise snacks margins Grow • UAC Foods manages a family of brands across several product •
Slide 21: Snapshot of the restaurants segment
Snapshot of the restaurants segment 21 Overview Value Creation • UAC Restaurants (UACR) pioneered QSR in Nigeria with the launch of Mr Bigg’s in 1986 • Piloted 5 company-owned stores earning annualised ROI of 39% (ahead of plan) • In addition to the Mr Bigg’s chain, UACR also operates the Debonairs
Slide 22: Appendix 2: Additional financial information
Appendix 2 Additional financial information
Slide 23: Cash Flow
Cash Flow 23 PBT to Free Cash Flow ₦ mn, unless otherwise stated H1 2021 FY 2020 FY 20191 Profit Before Tax from continuing operations 1,296 5,121 7,456 2 Profit/ (Loss) before tax from discontinued operations (2) 544 (14,696) Non-Cash charges & other 1,432 (1,636) (1,117) Changes in working capital