Bua Foods Plc · NSENG:BUAFOODS
Bua Foods — H1 2022 Earnings Presentation
36 slides from Bua Foods's earnings presentation, Aug 16, 2022
Slide 1: Investors & Analyst Conference Call Presentation – H1 2022
BUA FOODS PLC Investors & Analyst Conference Call Presentation – H1 2022 August 16, 2022 Page 1
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) ▪ This presentation has been prepared by BUA Foods PLC (“BUA Foods” or the “Company”) to provide an overview of the Company. “Presentation” means this document, its contents or any part of it, any oral presentation, any question or answer session and any written or oral material dis
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) ▪ The presentation includes market share and industry data obtained by the Company from industry publications and surveys and internal surveys. BUA Foods may not have access to the facts and assumptions underlying the numerical data, market data and other information extracted from
Slide 4: Presenters
Presenters Engr. Ayodele Abioye (MNSE) Managing Director Mr. Abdulrasheed Olayiwola Chief Financial Officer Page 4
Slide 5: Contents
Contents Sections 1 Introduction Page 6 2 Key Business Highlights Page 13 3 Strategic Updates Page 19 4 H1 2022 Financial Performance Page 27 5 Summary & Outlook Page 33 Page 5
Slide 6: Introduction
1 Introduction
Slide 7: Integration stage of growth aligned with strategic business model
As a brand of choice, our integration stage of growth is aligned with our strategic business model. Integration Establishment Commercial • Restructured - BUA Foods Plc • (BUA Sugar, BUA Rice, IRS Flour & Pasta, & Edible • Nigeria Oil Mill & BUA Oil Oils) • BUA Sugar Refinery • • LASUCO Market expans
Slide 8: Our philosophy is driven by our passion to nourish lives
Our philosophy is driven by our passion to nourish lives Page 8
Slide 9: A leading foods business with diversified, scalable operations
We are a leading foods business with well diversified and scalable operations, producing competitive products Installed capacity and utilisation 5 8 2 #2 Divisions Installed Capacity Capacity Largest sugar Capacity3 Expansion Utilisation Business Plants across the Wholly owned refinery in West divis
Slide 10: BUA Foods: Key Facts and Highlights
BUA Foods: Key Facts and Highlights. ✓ 1. A leading player in the food and FMCG industry with reputation for high quality products at competitive price. ✓ 2. Most Valuable Businesses in Sub Sahara Africa based on market capitalizations by Business Insider Africa. ✓ 3. The only company in West Africa
Slide 11: 1st Annual General Meeting held with focus on stakeholder engagement
1st Annual General Meeting has held with a focus on maximizing stakeholder engagement Page 11
Slide 12: 1st Annual General Meeting held with focus on stakeholder engagement
1st Annual General Meeting has held with a focus on maximizing stakeholder engagement 1 Engaged over 50 individuals at the Reporting to and maiden AGM held on 4 engaging with investors August 2022 2 Executing a compelling long-term strategy and communicating it to investors (local and foreign) 3 All
Slide 13: Key Business Highlights - H1 2022
2 Key Business Highlights - H1 2022
Slide 14: Sustained positive performance in H1 2022 driven by efficiency
Sustained positive performance in H1 2022 driven by efficiency Revenue EBITDA Profit after Tax EPS Profit after Tax (PAT) grew Sustained performance and EBITDA increased by 7.7% by 13.7% to ₦39.3 billion in positive outlook supported by to ₦50.1 billion in H1 2022 H1 2022 (H1 2021: ₦34.6 Earnings pe
Slide 15: Strategy sustaining positive performance across Divisions
BUA Foods’ strategy is sustaining positive performance across its Divisions. With half year volume decline at 13.6% to 400,066MT Revenue (₦’bn) EBITDA (₦’bn) Brand +11.3% +7.7% building Innovation 168.9 50.1 TOPLINE 151.7 46.5 Consolidation H1 2021 H1 2022 H1 2021 H1 2022 Excellence Profit Before Ta
Slide 16: Diverse funding base supportive of our expansion strategy
3. Diverse funding base supportive of our expansion strategy 18bn 981bn #5 NGX Listing Ordinary shares in Market Listed company on NGX capitalisation (₦)1 by market capitalisation1 issue of 50 kobo each H1 2022 FY 2021 Retained ₦232.0bn ₦192.7bn Earnings +20.4% H1 2022 FY 2021 Borrowings ₦230.2bn 2
Slide 17: Sustainability - Accounting for key metrics
Sustainability - Accounting for key metrics is core to our improvement's initiatives. Environmental Responsibility BUA Foods understands the essence of sustainable practices to current and future generations on a local and global scale Energy ESG METRIC Q1 Q2 Performance % Sources 1. GHGe - Carbon 2
Slide 18: Sustainability – Nourishing lives and impacting communities
Sustainability – Nourishing lives and Impacting our communities is at the core of our strategy. Over 85mN spend current year. Social Responsibility In addition to environmental sustainability, BUA Foods has continued to make contributions to its host communities **Donations made in conjunction with
Slide 19: Strategic Updates
3 Strategic Updates
Slide 20: Clear strategic priorities
Clear strategic priorities Short to Medium Term Long Term 1 Improve Market 2 Boost Capacity Share across all through Expansion of Expansion of Five Business Expansion of Operating Market Share Divisions Funding Base Platforms and Products Improve 4 Improve Route 1 2 3 Proximity to to Market and Raw
Slide 21: Growing our market share across all business divisions
1. Growing our market share across all business divisions Leveraging additional capacity to be onboarded and increasing demand and product offerings in the consumer market Divisions Installed: 1.5mn MTpa Installed: 500,000 MTpa Installed: 250,000MTpa Planned: 220,000 MTpa Planned: 720,000 MTpa Plann
Slide 22: Delivering high quality products at competitive prices
2. Delivering high quality products at competitive prices 1 Sugar ▪ A natural ingredient ▪ Super graded, white crystal ▪ Rich in vitamin A 2 ▪ Possess high nutritional value Flour ▪ Super graded fine flour ▪ Rich in vitamin B, fibres, magnesium, zinc and proteins ▪ Ease of use and consumption 3 Past
Slide 23: Continuing to strengthen our balance sheet
Continuing to strengthen our balance sheet Page 23
Slide 24: Supply point proximity to raw materials
3. Supply point proximity to raw materials Plants proximity to three major Nigeria port complex Plants proximity to three major Nigeria port complexes (Lagos, Tin Can and (Lagos Port Complex, Tin Can Island Port and Rivers PortComplex) Port Harcourt) Presence in Free trade Zone resulting in efficien
Slide 25: Leveraging market expansion and expanding retail customer base
4. Leveraging market expansion and expanding retail customer base Maintain existing Number of relationship with trade and corporate and trade corporate customers but also customers expand retail customer Retail market strategy base Sugar & Rice • Retail size packaging by Q4 2022 • +5% potential cont
Slide 26: Continuing to invest and partnering in our logistics system
5. Continuing to invest and partnering in our logistics system ~20MT 1 MV Bundu - first of two shipping Average capacity vessels for sugar export per vessel operations Adoption of new and advanced technology to improve order quality, reduce timing of daily sales order generation and internal control
Slide 27: H1 2022 Financial Results
4 H1 2022 Financial Results
Slide 28: BUA Foods recorded positive performance in H1 2022
BUA Foods recorded positive performance in H1 2022 Group Company H1 2022 H1 2021 H1 2022 H1 2021 Δ% ₦’000 Δ% (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net Revenue 168,854,513 151,731,133 11.3 134,701,428 104,735,917 28.6% Cost of Sales 116,788,996 100,579,994 16.1 96,759,987 71,393,598 35.5% G
Slide 29: Underlying revenue growth from pricing and efficiency
Underlying revenue growth from pricing and efficiency +11.3% Sugar +14.0% ❑ Topline growth across ₦109.1 billion all three Divisions ₦168.9bn ❑ Strategic Pricing ₦151.7bn actions to further Flour liquidate the impact of +12.0% rises in input costs ₦33.8 billion ❑ Carefully managing mix volumes align
Slide 30: Positive impact of growth strategy
Positive impact of growth strategy EBITDA Operating Profit Profit after Tax +7.7% +8.1% +13.7% ₦50.1bn ₦45.9bn ₦39.3bn ₦46.5bn ₦42.4bn ₦34.6bn H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 17.2 H1 2021 5.8 ROE -80bps ROA +30bps H1 2022 16.4 H1 2022 6.1 Page 30
Slide 31: Effective management of costs across the business divisions
Effective management of costs across the business divisions, despite volumes decline. Inflationary Pressure Levers to Manage Cost of Goods Sold Revenue growth management – Driven by raw materials cost volume planning, pricing actions, (+20.5% y-o-y) and energy cost and new product innovation (+0.3%
Slide 32: Continuing to strengthen our balance sheet
Continuing to strengthen our balance sheet Strong Net Cash from Operations Net Debt within Long-Term Target with Strong Growth of Retained is a Catalyst for Growth Flexibility to Manage Liquidity Earnings +1.0% -5.3% +20.4% ₦232.0bn ₦20.3bn ₦206.9bn ₦20.1bn ₦218.6bn ₦192.7bn H1 2021 H1 2022 FY 2021
Slide 33: Summary & Outlook
5 Summary & Outlook
Slide 34: Summary and outlook
Summary and outlook FY 2022 Growth Targets ❑ Our 2022 guidance is driven by topline growth in line with our growth model Double digits ❑ We are investing in capacity expansion for growth in sustained growth Revenue ❑ We are benefiting from internal efficiency synergies to drive down cost and improve
Slide 35: Thank You
Investor Relations Department: BUA Foods PLC Thank You BUA Towers, PC 32, Churchgate Street Victoria Island, Lagos Tel: +234 1 461 0669 ; +234 1 262 3535 Email: ir@buafoodsplc.com
Slide 36: Ly» AA
Ly» AA