Guinness Nigeria PLC · NSENG:GUINNESS
Guinness Nigeria — H1 F14 Earnings Presentation
18 slides from Guinness Nigeria's earnings presentation, Feb 17, 2014
Slide 1: Guinness Nigeria Plc F14 Half-Year Results
Guinness Nigeria Plc F14 Half-Year Results 17 February 2014
Slide 2: Agenda
Agenda d Introduction & Performance Review Seni Adetu, Managing Director/Chief Executive Officer Financial Performance Lisa Nichols, Finance and Strategy Director Strategic Priorities and Outlook Seni Adetu, Managing Director/Chief Executive Officer Questions & Answers Sesan Sobowale, Company Secret
Slide 3: H1 F14 Introduction and Performance Review
H1 F14 Introduction and Performance Review Seni Adetu
Slide 4: Nigeria continues to be an attractive market
Nigeria continues to be an attractive market … The MINT (Mexico, Indonesia, Nigeria and Turkey ) economies all have very favorable demographics for at least the next 20 years, and their economic prospects are interesting. - Jim O’Neil (millions) LPA+ Adults LPA+ adults today in 10 years Nigeria 80.0
Slide 5: … but challenges remain
… but challenges remain Power supply: Continues to be an issue but recent developments in the sector give cause for optimism as we expect to start to see a difference before the end of 2015. Discretionary income: Removal of fuel subsidy in 2012 continues to impact consumer spending. Security:
Slide 6: Key Drivers of Performance
Key Drivers of Performance The half has witnessed: Continued contraction of the beer market even though a slight improvement was reported in December 2013. Increasing growth of the value segment. Premium brands experienced softness in volume following price increases. This has led to: We
Slide 7: H1 F14 Financial Performance
H1 F14 Financial Performance Lisa Nichols
Slide 8: Comprehensive Income
Comprehensive Income H1 F14 H1 F13 Variance Growth Nbillion Nbillion Nbillion % Net Revenue 52.8 60.9 (8.1) -13% Cost of sales (27.5) (32.6) 5.1 -16% Gross profit 25.3 28.3 (3.0) -11% Marketing, Distr. & Admin costs (17.2) (17.1) (0.2) 1% Operating profit 8.0 11.2 (3.2) -28% Finance charges (1.6) (1
Slide 9: Drivers of Profit
Drivers of Profit Drivers of PAT F14 H1 vs. LY (=N= billion) 2.4 6.4 6.6 5.0 1.6 0.2 0.2 1.8 Lower profit and 0.6 Pioneer tax incentives F13 H1 Price Volume Mix Reduction in Marktg, Interest Tax F14 H1 PAT PAT increases downside other costs distr. and admin exp
Slide 10: Financial Position
Financial Position H1 F14 H1 F13 Movt Nbillion Nbillion Nbillion Non-current assets 91.7 84.8 6.9 Inventories 15.7 13.0 2.6 Receivables 19.7 15.8 3.8 Cash 4.3 4.4 (0.1) Total assets 131.3 118.0 13.2 Equity (40.6) (40.5) (0.0) Non-current liabilities (23.8) (21.6) (2.2) Current liabilities (66.9) (55
Slide 11: Strategic Priorities and Outlook
Strategic Priorities and Outlook Seni Adetu
Slide 12: Our strategic priorities
Our 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 Drive out cost to invest in growth Guarantee our plans with the right people and capability
Slide 13: Premium Core
Premium Core Guinness Harp Smirnoff Ice Malta Guinness • Re-launch of the Smirnoff brand Guinness brand awareness drive (Colorful world of Copa Lagos Beach more concert). Soccer sponsorship • Guinness Football Manager. • Continued EPL sponsorship. • Unveiling of the New • Associate Sponsor Look
Slide 14: Innovation
Innovation Orijin Alvaro Masters Choice Orijin Bitters Orijin to celebrates Alvaro – an adult Locally produced Locally produced the vibrancy of premium non-alcoholic premium spirit with premium spirit with African culture. Made malt based drink whisky flavors herbal extract with the flavour of Afric
Slide 15: Route to Consumer
Route to Consumer Outlet Rural Off Trade Sales Working Coverage Distribution Management Effectiveness Capital Increase Increase Sufficient Increase our Improve the availability of availability in distributor share in the efficiency & our brands and rural areas funding to growing off effectiveness sh
Slide 16: Going forward
Going forward We are conducting a pricing review on key brands in line with market realities. We plan to sustain A&P investments behind our brands. We expect to begin to see some of the benefits of our RtC transformation work. We expect that the re-launch of Guinness and Harp will drive incr
Slide 17: Questions and Answers
v GUINNESS NIGERIA Questions and Answers V. Guinness EGRY33
Slide 18: Important Notice
Important Notice This presentation is based on Guinness Nigeria Plc’s unaudited interim financial results for the half-year period ended 31st December 2013. Guinness Nigeria Plc (“GN” or the “Company”) has obtained some information in this presentation from sources it believes to be reliable. Althou