Zambeef Products Plc · LSE:ZAM
Zambeef Products — FY2019 Earnings Presentation
22 slides from Zambeef Products's earnings presentation, September 2019
Slide 1: Financial Results for the year ended 30 September 2019
Financial Results for the year ended 30 September 2019
Slide 2: Overview
Overview Strong Continued Stockfeed Disposal of performance rollout of volume and non-core from the Zambeef revenue assets: Cropping Macro outlets growth Sinazongwe division & Shoprites Farm Govertment Net debt Margins Devastating legislation: increase & under regional Revenue Negative cash pressure
Slide 3: Operating Environment
Operating Environment ECONOMY INPUTS PRODUCTS ZMW / USD Maize ($) Wheat ($) 24% 2019: 12.32 28% 2019: 207 Ton 3% 2019: 447 Ton 2018: 9.92 2018: 161 Ton 2018: 433 ton Inflation Soya Cake ($) Soya Beans ($) 18% 22% 2019: 8.4% 2019: 442 Ton 4% 2019: 400 Ton 2018: 7.2% 2018: 363 Ton 2018: 417 Ton Diesel
Slide 4: Financial Overview
Financial Overview Revenue Gross Profit 13% 13% (ZMW) 2019: ZMW 3.13bn (ZMW) 2019: ZMW 1.09bn 2018: ZMW 2.78bn 2018: ZMW 0.96bn 9% 2019: USD 254m 9% 2019: USD 88m (USD) (USD) 2018: USD 280m 2018: USD 97m Operating Profit Group Income 36% 76% (ZMW) 2019: ZMW 161m (ZMW) 2019: ZMW 18.5m 2018: ZMW 118m
Slide 5: Financial Overview
Financial Overview 2019 2018 % 2019 2018 % Group ZMW'000 ZMW'000 Change USD'000 USD'000 Change Revenue 3,134,967 2,780,589 13% 254,462 280,301 -9% Gross Profit 1,081,547 959,159 13% 87,788 96,689 -9% Overheads -920,771 -841,319 9% -74,738 -84,810 -12% Central Overhead -136,070 -129,907 5% -11,045 -1
Slide 6: Group Operating Profit Analysis
Group Operating Profit Analysis Other Stockfeed 5% 2019 25% Retail & CCFP 36% Cropping Other 34% 3% 2018 Stockfeed 27% Retail & CCFP 58% Cropping 12% 6
Slide 7: Divisional Overview (ZMW)
Divisional Overview (ZMW) Retail & CCFP Stockfeed Revenue Revenue 6% 2019: ZMW 2.12bn 40% 2019: ZMW 986m 5.3% 2018: ZMW 2.01bn 2018: ZMW 706m Operating Profit Operating Profit 26% 2019: ZMW 108m 7% 2019: ZMW 73m 2018: ZMW 146m 2018: ZMW 68m Cropping Other businesses Revenue Revenue 49% 8% 2019: ZMW
Slide 8: Divisional Overview (USD)
Divisional Overview (USD) Retail & CCFP Stockfeed Revenue Revenue 15% 2019: USD 172m 7% 2019: USD 80m 2018: USD 202m 2018: USD 71m Operating Profit Operating Profit 41% 2019: USD 8.7m 14% 2019: USD 5.9m 2018: USD 14.7m 2018: USD 6.9m Cropping Other businesses Revenue Revenue 26% 2019: USD 39m 20% 20
Slide 9: Financial Overview - Revenue
Financial Overview - Revenue 9
Slide 10: Financial Overview – Operating Profit
Financial Overview – Operating Profit 10
Slide 11: Retailing Network
Retailing Network Actual Actual Actual Actual 2019 2018 2017 2016 Zambia Zambeef Outlets 65 67 81 87 Zambeef Macros 35 29 19 10 Novatek 28 24 17 10 Zamshu Outlets 28 19 12 2 Bakery 1 1 0 0 157 140 129 109 Shoprites 38 34 31 31 Total Zambia 195 174 160 140 Nigeria Shoprite 25 25 23 20 ❑ 6 Macro outle
Slide 12: Retailing Revenue Channel Analysis
Retailing Revenue Channel Analysis West Africa Novatek 11% 8% 2019 Macro 30% Shoprite 22% Outlet 29% West Africa 8% 2018 Novatek 8% Macro 27% Shoprite 24% Outlet 33% 12
Slide 13: Retailing Revenue Channel Analysis
Retailing Revenue Channel Analysis 800 000 Revenue ZMW'000 2019 2018 34% 3% 600 000 9% 400 000 69% 200 000 28% 0 Macro Outlet Shoprite Novatek West Africa 80 000 Revenue USD'000 60 000 2019 2018 8% 17% 40 000 12% 20 000 36% 3% 0 Macro Outlet Shoprite Novatek West Africa 13
Slide 14: Retail & Cold Chain Food Products P&L
Retail & Cold Chain Food Products P&L 2019 2018 % 2019 2018 % Retail & CCFP ZMW'000 ZMW'000 Change USD'000 USD'000 Change Revenue 2,123,648 2,004,711 6% 172,374 202,088 -15% Gross Profit 581,159 578,987 0% 47,172 58,366 -19% Overheads -419,417 -385,484 9% -34,044 -38,859 -12% Operating Profit 107,74
Slide 15: Stockfeed P&L
Stockfeed P&L 2019 2018 % 2019 2018 % Novatek ZMW'000 ZMW'000 Change USD'000 USD'000 Change Revenue 986,075 706,008 40% 80,039 71,170 12% Gross Profit 191,011 163,442 17% 15,504 16,476 -6% Overheads -103,751 -82,460 26% -8,421 -8,313 1% Operating Profit 73,092 68,264 7% 5,933 6,881 -14% GP % 19.4% 2
Slide 16: Cropping P&L
Cropping P&L 2019 2018 % 2019 2018 % Cropping ZMW'000 ZMW'000 Change USD'000 USD'000 Change Revenue 474,202 515,585 -8% 38,490 51,974 -26% Gross Profit 270,116 189,601 42% 21,925 19,113 15% Overheads -126,413 -118,729 6% 10,262 11,969 -14% Operating Profit 101,082 29,380 244% 8,205 2,962 177% GP % 5
Slide 17: Other businesses P&L
Other businesses P&L 2019 2018 % 2019 2018 % Other ZMW'000 ZMW'000 Change USD'000 USD'000 Change Revenue 210,348 141,452 49% 17,074 14,259 20% Gross Profit 39,261 27,129 45% 3,187 2,736 16% Overheads -21,930 -18,521 18% -1,780 -1,867 -5% Operating Profit 15,361 6,885 123% 1,247 694 80% GP % 18.7% 19
Slide 18: Abridged Balance Sheet
Abridged Balance Sheet 30 Sep 19 30 Sep 18 30 Sep 19 30 Sep 18 ZMW'000 ZMW'000 USD'000 USD'000 Non Current Assets 3,077,526 3,132,288 233,146 255,907 Current Assets 1,389,279 1,031,956 105,248 84,310 TOTAL ASSETS 4,466,805 4,164,244 338,394 340,217 Capital and Reserves 3,240,828 3,107,114 245,517 25
Slide 19: Abridged Cash Flow Statement
Abridged Cash Flow Statement 30 Sep 19 30 Sep 18 30 Sep 19 30 Sep 18 ZMW'000 ZMW'000 USD'000 USD'000 Profit before taxation 38,653 28,011 3,138 2,823 EBITDA, Fair value adj. & FOREX 224,904 294,390 18,255 29,677 Net cash inflow from operating activities -30,806 79,635 -2,500 8,028 Movement in Workin
Slide 20: Capex
Capex Record low of ZMW113.8 million (USD 9.2 million) with a focus on completing expansion projects started in previous reporting periods; ❑ USD5.02 million on Retail & Cold Chain Food Products with the addition of • Retail: 6 new Macro outlets and the expansion of the logistics fleet. • Zamhatch:
Slide 21: Outlook & Strategic focus
Outlook & Strategic focus ❑Macro Economic factors o Zambia’s GDP is forecast to grow by 3% in 2020 (Target 2% end 2019) o Electricity constraints • Supply (Hydro-electricity reliance, Regional drought) • Tariff increase to cost reflective rates expected o Zambian Kwacha further sharp depreciation •
Slide 22: Questions?
Questions? As V4 { k \ CELEBRATING TBYEARS) - CELEBRATIN— . 25 YEARS