Uac Of Nigeria Plc · NSENG:UACN
Uac Of Nigeria — FY2023 Earnings Presentation
29 slides from Uac Of Nigeria's earnings presentation, Apr 4, 2024
Slide 1: UAC of Nigeria PLC FY 2023 Results
UAC of Nigeria PLC FY 2023 Results 04 April 2024 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, its subsidiaries and associate businesses (“UAC”, the “Company” or “Group”) future growth, results of operations, performance, business prospects, operating market
Slide 3: Contents
Contents 3 Introduction 4 Operating context 6 2023 highlights 9 FY 2023 financial performance 15 Outlook 19 Appendix 1: Additional financial information 23
Slide 4: Introduction
Introduction
Slide 5: Introduction
Introduction 5 ▪ UAC of Nigeria PLC (“UAC”) recorded revenue of ₦121 billion and Profit Before Tax of ₦12.3 billion for the 2023 financial year ▪ In this presentation we will cover ─ Operating conditions ─ Initiatives executed in 2023 ─ Insights on 2023 financial performance ─ Outlook for 2024 ▪ Per
Slide 6: Operating Context
Operating Context
Slide 7: Macroeconomic conditions in 2023 were very difficult
Macroeconomic conditions in 2023 were very difficult, with low growth, record 7 inflation, high interest rates, and naira devaluation Real GDP Growth Exchange Rate ₦:$ CBN rates Parallel 5.0% 1,600 4.0% 4.0% 1,400 3.5% 3.5% 3.5% 3.1% 1,200 2.5% 2.5% 1,000 2.3% 2.3% 800 600 0.5% 400 200 - Q1 Q2 Q3 Q4
Slide 8: Escalation of key input and operating costs continued in 2023
Escalation of key input and operating costs continued in 2023 8 Animal Feed Paints Maize Soya Bean Resin Titanium Dioxide Food 186 314 217 252 172 N/Kg 198 153 213 164 201 100 156 100 120 100 100 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 Flour 313 Vegetable Oil
Slide 9: 2023 Highlights
PN 2023 Highlights *\
Slide 10: We executed the following strategic objectives in 2023
We executed the following strategic objectives in 2023 10 ▪ In line with our objective to simplify the group structure, we merged UAC Foods (100% owned by UACN) and Spring Waters Simplified Nigeria Limited (SWAN) (96.64% owned by UAC Foods), effective August 2023. Group Structure ▪ UACN now owns 99.
Slide 11: Core to UAC's strength are its leading brands and distribution
Core to UAC’s strength are its leading brands and distribution… 11 Brands Reach/ Monthly Sales Packaged ▪ National distribution coverage Food and Beverages ▪ 35 million units of snacks, water and dairy sold ▪ 108 retail outlets Paints ▪ 800 thousand litres of paint ▪ 60 restaurants across Nigeria Qu
Slide 12: With meaningful manufacturing presence supporting nationwide distribution
With meaningful manufacturing presence supporting nationwide 12 distribution • Logistics – Warehouse Footprint • Quick Service Restaurants (QSR) Outlets 28 warehouses across 22 states 60 restaurants across 14 states • Paint Retail Stores • Food and Agro-Allied Distributors 108 paint retail stores ac
Slide 13: Growth and Margin Improvement – FY 2023
Growth and Margin Improvement – FY 2023 13 Revenue (₦’mn) Gross margin (%) 120,528 18% 13% +466 bps +10% 109,270 2022 2023 2022 2023 Commentary Operating margin (%) • H1 2023 performance was impacted by Naira redesign induced cash shortage in Q1 2023. 8% • Performance in H2 2023 was much stronger th
Slide 14: Segment performance highlights
Segment performance highlights 14 Animal Feeds & ▪ Enhanced profit driven by cost management initiatives and proactive pricing. Other Edibles ▪ Focus on maintaining improved profitability trend by improving product quality and reducing energy costs. Packaged Food ▪ Profitability driven by sales grow
Slide 15: FY 2023 Financial Performance
FY 2023 Financial Performance
Slide 16: 2023 financial highlights
2023 financial highlights 16 Operating Free Cash Return on Revenue EPS1 Profit Flow Invested Capital2 FY FY FY FY FY ₦121bn ₦9.1bn 314 kobo ₦3.8bn 20% +10% (₦2.4bn)3 (107 kobo) ₦9.6bn 2,487 bps vs FY 2022 FY 2022 FY 2022 FY 2022 vs FY 2022 (1) Earnings per share from continuing operations (2) Invest
Slide 17: Key factors impacting UAC Group's underlying operating profit
Key factors impacting UAC Group’s underlying operating profit 17 Operating Profit Bridge, in ₦ mn (FY 2022 to FY 2023) Largely driven by sale impact of inflation and of non-core property Naira devaluation on assets (₦7.8bn) operating costs. Topline growth across all operating segments, Impacted by ₦
Slide 18: Balance sheet and liquidity
Balance sheet and liquidity 18 Net Assets Net Debt/(Cash) Capex Cash Cycle ₦53.2bn ₦2.2bn ₦4.7bn 83 days +₦7.9bn (₦2.8bn) ₦7.1bn 74 days vs Dec 2022 Dec 2022 Dec 2022 Dec 2022
Slide 19: Outlook
Outlook
Slide 20: Corporate action: N644 million dividend to UAC shareholders
Corporate action: N644 million dividend to UAC shareholders 20 ▪ Total dividend of 22 kobo per ordinary share (₦644 million) FY 2023 ▪ Qualification date: June 6, 2024 Dividend ▪ Register of shareholders will be closed from June 7, 2024, to June 13, 2024 (both dates inclusive) (N644 million) ▪ Annua
Slide 21: Outlook
Outlook 21 ▪ We expect challenging macroeconomic conditions to continue over the course of 2024 and will focus on steering our businesses through these challenges. ▪ We anticipate margin pressure on account of the lag between rising input costs and passing these on to the already stressed consumer v
Slide 22: Questions & Answers
Questions & Answers For further information please contact UACN Investor Relations Email: Investorrelations@uacnplc.com Phone: +234 906 269 2908
Slide 23: Appendix 1: Additional financial information
Appendix 1 Additional financial information
Slide 24: Income statement – FY 2023
Income statement – FY 2023 24 ₦ mn, unless otherwise stated FY 2023 FY 2022 ∆% Revenue 120,528 109,270 10% Gross Profit 21,319 14,237 50% Gross Profit Margin (%) 18% 13% 466 bps Operating Profit 9,093 (2,384) n/m Operating Profit Margin (%) 8% (2%) 973 bps Net Finance Income 2,388 (2,085) n/m Share
Slide 25: 2023 financial performance
2023 financial performance 25 In Naira Millions H1 2023 H1 2022 % Change H2 2023 H2 2022 % Change FY 2023 FY 2022 % Change Revenue 52,870 52,042 2% 67,658 57,228 18% 120,528 109,270 10% COGS (44,252) (43,105) 3% (54,958) (51,928) 6% (99,210) (95,033) 4% Gross Profit 8,619 8,937 (4%) 12,700 5,300 140
Slide 26: Financial Position – 31 December 2023
Financial Position – 31 December 2023 26 Summary Balance Sheet Working Capital N mn Dec-23 Dec-22 D% N mn Dec-23 Dec-22 D% Non-current Assets 48,348 45,994 5% Inventory 26,917 24,396 10% Current Assets 63,467 47,292 34% Trade Receivables 1,280 1,562 (18%) Other Assets 531 542 (2%) Trade Payables 5,5
Slide 27: Segment Performance Snapshot – FY 2023
Segment Performance Snapshot – FY 2023 27 Revenue Profit Before Tax N mn FY 2023 FY 2022 D% N mn FY 2023 FY 2022 D% Group 120,528 109,270 10% Group 12,340 (4,365) (383%) Animal Feeds & Other Edibles 66,942 65,939 2% Animal Feeds & Other Edibles (2,452) (6,863) (64%) Paints 23,890 19,208 24% Paints 3
Slide 28: Net Debt Position
Net Debt Position 28 Net (Debt)/Cash Position as at 31 Dec 2023 (in ₦ mn) Net Debt Cash & Cash Short-Term Long-Term (excl. Intra- Intra-Group Net Debt (incl. Equivalents Debt Debt Group) Payable Intra-Group) UAC HoldCo 15,841 (3,323) - 12,518 4,795 17,312 Other Operating Segments 9,429 (21,666) (2,4
Slide 29: Cash Flow
Cash Flow 29 PBT to Free Cash Flow ₦ mn, unless otherwise stated FY 2023 FY 2022 Profit/(loss) Before Tax from continuing operations 12,340 (4,365) Profit/(Loss) before tax from discontinued operations - 7 Non-Cash charges (3,215) 6,081 Changes in working capital (8,137) 16,026 of which receivables