Zambeef Products Plc · LSE:ZAM
Zambeef Products — H1 2020 Earnings Presentation
20 slides from Zambeef Products's earnings presentation, March 2020
Slide 1: Financial Results for the half-year period ended 31 March 2020
Financial Results for the half-year period ended 31 March 2020
Slide 2: Table Of Contents
Table Of Contents Business Highlights 3 Operating Environment 4 Financial Overview 5 Retail Channel Analysis 10 Divisional Overview 11 Abridged Financials 16 Group Debt Analysis 17 Outlook 19
Slide 3: Business Highlights
Business Highlights USD Spot Rate (in ZMW) • Exponential operating profit growth 18.20 • Strong financial performance at Novatek • Improved yields & revenue in the Cropping division • High operational leverage in the Dairy division • Zambian Kwacha depreciated by 37% 12.00 • Inflationary pressures p
Slide 4: Operating Environment
Operating Environment ECONOMY INPUTS PRODUCTS ZMW / USD Maize ($) B/fast Mealie Meal (K) 22% HY20: 14.5 72% HY20: 323 /ton 71% 3% HY20: 151 /25Kg HY19: 11.9 HY19: 187 /ton HY19: 88 /25Kg Inflation Soya Cake ($) Beef (All) 56% HY20: 12.3% 12% HY20: 437 /ton 6% HY20: K26.4 /Kg HY19: 7.9% HY19: 497 /to
Slide 5: Financial Overview
Financial Overview Revenue Gross Profit 626,129 1,797,633 45,013 129,233 118,833 1,416,490 39,477 470,570 HY 19 HY 20 HY 19 HY 20 HY 19 HY 20 HY 19 HY 20 ZMW ‘000 USD ‘000 ZMW’000 USD ‘000 Operating Profit Group Income 2,140 154 9,022 125,499 HY-19 HY-20 HY-19 HY-20 11,377 (31,789) 954 (2,668) HY 19
Slide 6: Group Profit Analysis (ZMW'000)
Group Profit Analysis (ZMW’000) HY 20 HY 19 Others Others 4% 4% Gross Profit HY 20 HY 19 %∆ Cropping Retail & CCFP 316,798 282,279 12.2% Cropping 20% Stockfeed 122,378 77,544 57.8% 26% Retail & Retail & Cropping 161,886 93,323 73.5% CCFP CCFP Others 25,067 17,424 43.9% Stockfeed 51% 60% Total 626,12
Slide 7: Group Profit Analysis (USD'000)
Group Profit Analysis (USD’000) HY 20 HY 19 Others Others 4% 4% Gross Profit HY 20 HY 19 %∆ Cropping Retail & CCFP 22,775 23,681 -3.8% Cropping 20% Stockfeed 8,798 6,505 35.2% 26% Retail & Retail & Cropping 11,638 7,829 48.7% CCFP CCFP Others 1,802 1,462 23.3% Stockfeed 51% 60% Total 45,013 39,477 1
Slide 8: Financial Overview – P&L
Financial Overview – P&L 2020 2019 2020 2019 ZMW’000 ZMW’000 %∆ USD’000 USD’000 %∆ Revenue 1,797,633 1,416,490 26.9% 129,233 118,833 8.8% Cost of Sales (1,161,096) (930,191) 24.8% (83,472) (78,036) 7.0% Gross profit 626,129 470,570 33.1% 45,013 39,477 14.0% Overheads (428,435) (383,726) 11.7% (30,80
Slide 9: Retailing Network
Retailing Network HY-20 2019 2018 2017 2016 Highlights Zambia Zambeef Outlets 67 65 67 81 87 ❑ Successful roll out of two new Zambeef Macros 37 35 29 19 10 Macro’s and two outlets Novatek 29 28 24 17 10 ❑ Zambeef’s strategic focus on the Zamshu Outlets 32 28 19 12 2 roll-out of macro and retail stor
Slide 10: Retailing Revenue Channel Analysis-Zambia (ZMW'000)
Retailing Revenue Channel Analysis-Zambia (ZMW’000) -4.6% +23.3% 315,692 307,107 293,009 HY 20 HY 19 256,099 +29.7% +39.7% 184,215 158,084 142,047 113,175 +3.3% 65,752 63,681 Zambeef Outlets Zambeef Macros Novatek Shoprite Other HY 20 HY 19 Other Other 6% 7% Shoprite Shoprite Zambeef 16% Zambeef 18%
Slide 11: Divisional Overview – Revenue
Divisional Overview – Revenue Retail & CCFP Stockfeed 1,163,355 46,129 641,656 84,636 34,593 412,344 1,008,866 83,634 HY 19 HY 20 HY 19 HY 20 HY 19 HY 20 HY 19 HY 20 ZMW ‘000 USD ‘000 ZMW ‘000 USD ‘000 Cropping 18,475 Other Businesses 8,065 256,990 109,476 12,628 150,529 96,129 7,871 HY 19 HY 20 HY
Slide 12: Retail & Cold Chain Food Products P&L
Retail & Cold Chain Food Products P&L HY 20 HY 19 HY 20 HY 19 Highlights ZMW'000 ZMW'000 USD'000 USD'000 ❑ Favourable beef prices resulted in Retail & CCFP 1,163,355 1,008,866 15.3% 83,634 84,636 -1.2% increased revenue despite marginal Gross Profit 316,798 282,279 12.2% 22,775 23,681 -3.8% increase
Slide 13: Stockfeed P&L
Stockfeed P&L HY 20 HY 19 HY 20 HY 19 Highlights ZMW'000 ZMW'000 USD'000 USD'000 ❑ 109% increase in export sales with Revenue 641,656 412,344 55.6% 46,129 34,593 33.3% 10,560 tonnes having been Gross Profit 122,378 77,544 57.8% 8,798 6,505 35.2% exported to 11 neighbouring and Overheads (60,752) (53
Slide 14: Cropping P&L
Cropping P&L HY 20 HY 19 HY 20 HY 19 ZMW'000 ZMW'000 USD'000 USD'000 Highlights Revenue 256,990 150,529 70.7% 18,475 12,628 46.3% ❑ Cropping revenue increased 71% Gross Profit 161,886 93,323 73.5% 11,638 7,829 48.7% on the back of improved soya Overheads (85,151) (80,593) 5.7% (6,122) (6,761) -9.5%
Slide 15: Other divisions P&L
Other divisions P&L HY 20 HY 19 HY 20 HY 19 ZMW'000 ZMW'000 USD'000 USD'000 Highlights Revenue 109,476 96,129 13.9% 7,870 8,065 2.4% ❑ Shoe sales increased by 26% to Gross Profit 25,067 17,424 43.9% 1,802 1,462 23.3% 56,093 pairs (HY 2019: 44,370 Overheads (11,634) (13,305) -12.6% (836) (1,116) -25.
Slide 16: Abridged Balance Sheet
Abridged Balance Sheet HY 20 FY 19 HY 19 HY 20 FY 19 HY 19 ZMW'000s ZMW'000s ZMW'000s USD '000s USD '000s USD '000s Non – current assets 3,550,005 3,077,526 3,123,611 196,567 233,146 256,243 Current assets 1,479,447 1,389,279 1,092,947 81,918 105,248 89,659 Total assets 5,029,452 4,466,805 4,216,558
Slide 17: Group Debt Analysis
Group Debt Analysis Net Debt Net Debt (in USD’000s) (in ZMW’000s) Term Loan Repayments during HY ZMW 56,612,295 71,063 67,148 1,001,779 (USD 4,069,899) 55,470 886,350 ZMW:USD Average FX rate Closing rate 866,261 HY 2019 11.92 12.19 FY 2019 12.32 13.2 HY 2020 13.91 18.06 HY 20 FY 19 HY 19 HY 20 FY 19
Slide 18: Abridged Cashflow Statement
Abridged Cashflow Statement HY 20 FY 19 HY 19 HY 20 FY 19 HY 19 ZMW'000s ZMW'000s ZMW'000s USD '000s USD '000s USD '000s Profit/(Loss) before taxation 12,490 38,653 (30,156) 898 3,138 (2,531) EBITDA, Fair value adjustments and Forex 160,951 224,904 81,601 11,566 18,255 6,846 Net cash (outflow)/inflo
Slide 19: Outlook
Outlook Macro Economic factors ❑ Zambia is forecasted to experience its first recession in more than 20 years with GDP growth forecasted to be -3.0% in 2020 ❑ Electricity supply is expected to stabilize with reduced load-shedding hours in H2 • Over dependence on Hydro-electric power supply which is
Slide 20: Questions?
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