Bid Corporation Limited · JSE:BID
Bid — Bidcorp — H1 2017 Earnings Presentation
34 slides from Bid's earnings presentation, February 2017
Slide 1: Financial results for the half year ended December 31 2016
A leading Foodservice group trading across five continents in over 30 countries Financial results for the half year ended December 31 2016
Slide 2: Agenda
Agenda Brian Joffe, Executive Chairman Introduction Bernard Berson, CEO Strategy and Trading David Cleasby, CFO Financial Q&A Appendices Financial results for the half year ended December 31 2016 2
Slide 3: Update on Strategic and Operational Delivery
Update on Strategic and Operational Delivery Bernard Berson
Slide 4: Delivering strategically
Delivering strategically Focused Johannesburg Stock Exchange listing Delivering as we guided for Foodservice Largest listed Foodservice group outside of the US the first full six months as a investment “Bidfood” branding being rolled out internationally listed company Refining the focus on t
Slide 5: Delivering operationally
Delivering operationally Exiting of Logistics has gone to plan in Australia, boosting overall profit margin and profitability Australasia Increased focus on free trade and supply chain initiatives in New Zealand An overall record interim result again Realistic about the uncertainties posed b
Slide 6: Trading Performance
Trading Performance Bernard Berson
Slide 7: Trading performance: Australasia
Trading performance Australasia Australia (incorporating Australia and New Zealand) Three small bolt-ons to plug network gap Trading profit R million Trading margin % 1800 6,5% Competitor activity on the increase 6,2% 1600 6,0% Sales down 8,1% in AUD on exit of low margin Logistics 1400 1200 1
Slide 8: Trading performance: United Kingdom
Trading performance United Kingdom Foodservice (incorporating Foodservice, Fresh and Logistics) Sales down 4,6% in GBP, in line with quality of business Trading profit R million Trading margin % Trading margin % (excl. Logistics) strategy and an extra week LY 1 700 5,0% Trading profit up 20,8% w
Slide 9: Trading performance: Europe
Trading performance Europe Netherlands (incorporating Netherlands, Belgium, Czech, Slovakia, Poland, Italy, Baltics, Spain) Sales growth of 4,7% in EUR driven by double digit Trading profit R million Trading margin % growth in national accounts and free trade 1 200 3,8% 3,6% 3,6% Investment in c
Slide 10: Trading performance: Czech, Slovakia, Poland, Italy
Trading performance Czech and Slovakia Italy Sales up 8,7% and trading profits up 16,0% in CZK Sales up 5,2% like-for-like, up 19,9% including Quartiglia Shift in mix from retail to HORECA in Czech acquisition Slovakia grew sales strongly in HORECA and retail Trading profits up 14,4% like-
Slide 11: Trading performance: Emerging Markets
Trading performance Emerging Markets Greater China (incorporating Hong Kong, China, Singapore, South Africa, Chile, Brazil, Middle East) Hong Kong Trading profit R million Trading margin % Sales up 5,5% in HKD with trading profits up 7,2% 950 6,5% Benefits of promotional initiatives and new prod
Slide 12: Trading performance: South Africa, Middle East, Chile, Brazil
Trading performance South Africa Middle East A weak economy, vigorous competition, accelerating Outperforming in a challenging regional economy food inflation Sales up 23,3% in AED with trading profit up 28,4% Sales up 12,6% and trading profits up 27,1% in ZAR HORECA sales in UAE especiall
Slide 13: Outlook
Outlook Australia – budgeting for continued real growth, driven by free trade, Australasia product development and new branches New Zealand – substantial investment, budgeting for a record year Innovation United ZAR result in 2016 represents a high base due to currency weakness Disruption King
Slide 14: Financial
Financial David Cleasby
Slide 15: Dynamic trading businesses with a healthy financial position
Dynamic trading businesses with a healthy financial position Robust financial position EBITDA R billion Trading profit R billion Capital investments delivering efficiencies and future 6,4 growth capacity 5,2 3,5 A healthy platform off which to deliver on the return 3,0 2,8 2,4 objectives Inv
Slide 16: Statement of profit
Statement of profit Revenue R billion EBITDA margin % Healthy financial result driven organically 160 5,4 Positive momentum maintained through the period 140 5,1 5,2 120 5,0 Revenue flat at R67,8 billion 4,7 4,8 100 4,6 4,6 Constant currency revenue grew by 3,1% 4,4 80 140,5 4,4 60 Trading
Slide 17: Statement of profit
Statement of profit PF H1 2016 H1 2017 PF 2016 Quality of earnings evident in the result, underpinned by 25% 21,4% 20,8% disciplined trading 20,2% 20% 16,6% 17,3% 17,1% Gross profit percentage of 21,4% versus 20,2% 15% Reflecting the benefit of focusing on the correct mix of business 10% Ope
Slide 18: Statement of profit
Statement of profit Taxation Effective tax rate of 24,7% is in line with our expectations (excluding capital items) Mix of tax rates in differing jurisdictions F2017 guidance approximately 25% Associates Principally specialist Fresh businesses in the Netherlands Share of profit of asso
Slide 19: Financial position
Financial position Equity R billion Net debt R billion Strong statement of financial position backed by 25,0 24,2 24,2 4,5 historically reliable cash flows provides flexibility to 4,3 24,0 23,1 4,0 pursue growth ambitions, both organic and acquisitive 23,0 22,3 3,5 Equity decline driven by posit
Slide 20: Cash flow
Cash flow H1 2017 Cash generated from operations pre working capital R3,4 billion Working capital Working capital absorbed in H1 and released in H2 Working capital absorption of R1,3 billion – normal for the first half Net working capital cycle of 3 days (PF H1 2016: 5 days) (PF2016: (1)
Slide 21: Financial guidance
Financial guidance Low gearing with adequate unused facilities Highly cash generative (managed correctly) Businesses are anticipating continued real growth in their home currencies in the period ahead Improving ROE and ROFE Currency volatility will continue to be a feature but businesses m
Slide 22: All
CBidcorp
Slide 23: Appendix: Operations
Appendix: Operations
Slide 24: International foodservice presence
International foodservice presence Revenue Trading profit Emerging 24 500 employees Emerging Markets Markets 15% Australasia 260 warehouses, 1,3 million m² 20% Australasia 23% 33% 500 000 distribution points 5 000 distribution vehicles Europe >300 000 customers Europe 24% United 60% Inde
Slide 25: Group overview (pro forma)
Group overview (pro forma) Pro forma Half year ended Half year ended R’000s Dec 31 2016 Dec 31 2015 Change Revenue 67 821 938 140 523 301 (0,5%) Trading profit 2 825 913 2 441 784 15,7% Trading margin 4,2% 3,6% 16,3% Proven formula delivers strong result Momentum continued through the first half wit
Slide 26: Australasia
Australasia Features of the trading period in Australia Winding down of Logistics, Foodservice growth, and tight expense control positively affected margin by 0,9% Mining industry linked branches experienced weaker trading but overall trading was positive Acquisitions in Port Macquarie and Lau
Slide 27: Australasia
Australasia Features of the trading period in New Zealand Food deflation but price pressures are evident in a buoyant domestic economy Higher margins across Foodservice, Fresh, and Processing Complementary offerings to Foodservice increasingly important, adds to total service solution Freshe
Slide 28: United Kingdom
United Kingdom Features of the trading period in United Kingdom Captures full six months following EU referendum vote on June 23 2016 Management assesses risks, opportunities and customer impacts – scenarios, contingencies Economic conditions have been favourable and free trade volume growth p
Slide 29: Europe
Europe Features of the trading period in Europe Food focus yielding results across the region In Netherlands, national accounts and free trade sales growth 13,3% and 14,1% respectively In Belgium, HORECA segment flat like-for-like but sales in total were up 18,5% due to Bestfood (four months)
Slide 30: Emerging markets
Emerging markets Features of the trading period in Emerging Markets Chinese consumer demand for the expanding Bidcorp product offering, including gourmet, delivered through the supermarket chain, hotels, restaurants, bakery and other channels, continues to accelerate Second-tier Chinese cities b
Slide 31: Bidcorp strategy
Bidcorp strategy Foodservice is our business across multiple customer segments Internationally diverse across five continents in over 30 countries An entrepreneurially decentralised business model proven over a quarter-century Leveraging off positive industry growth dynamics driven by an acceleratin
Slide 32: Appendix: Bidcorp segment profits detail
Appendix Bidcorp segment profits detail
Slide 33: Segment profits detail
Segment profits detail Trading profit Margin Share of Change Trading profit Margin Share of ZAR’000 H1 2017 % group % % PF H1 2016 % group % Foodservice 2 867 081 101,5 2 458 345 100,7 Australasia 943 601 6,2 33,4 22,5 770 231 5,3 31,6 United Kingdom 749 751 2,9 26,5 (1,1) 757 726 2,5 31,0 Europe 58
Slide 34: Thank you
Thank you