Bua Foods Plc · NSENG:BUAFOODS
Bua Foods — Q1 2022 Earnings Presentation
31 slides from Bua Foods's earnings presentation, May 2022
Slide 1: Analyst Presentation – Q1 2022 and FY 2021
BUA FOODS PLC Analyst Presentation – Q1 2022 and FY 2021 May 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 FINANCE OFFICER Page 4
Slide 5: Contents
Contents Sections 1 Introduction 2 Key Messages 3 Q1 2022 and FY 2021 Overview & Strategic Priorities 4 Q1 2022 Results 5 Summary & Outlook Page 5
Slide 6: Introduction
1 Introduction
Slide 7: Our Philosophy: Nourishing Lives
Our Philosophy Our Vision Our Mission NOURISHING LIVES To fulfil Africa’s food demands by To provide high quality foods promoting food security and with a focus on creating long- nourishing lives term value for all stakeholders www.buafoodsplc.com Page 7
Slide 8: Leading foods business with diversified and scalable operations
We evolved as a leading foods business, with diversified and scalable operations, producing quality and competitive consumer products Installed capacity and utilisation 5 8 2 #2 Divisions Installed Capacity Capacity Largest sugar Capacity3 Expansion Utilisation Business Plants across the Wholly owne
Slide 9: Strong performance in FY 2021 and Q1 2022
We delivered strong performance in FY 2021 and Q1 2022, driven by volume and price growth, respectively Revenue EBITDA Profit after Tax EPS EBITDA +21.4% to ₦27.7 Profit after Tax +18.6% to Improved performance and billion in Q1 2022, ₦22.8 billion in Q1 2022, positive outlook fortified by Earnings
Slide 10: Key messages
2 Key messages
Slide 11: Key milestones in evolution to a brand of choice
BUA Foods, over the last two decades, has achieved key milestones in its evolution to become a brand of choice Integration Establishment Commercial STAGE 3 • Restructured - BUA Foods Plc • (BUA Sugar, STAGE 2 BUA Rice, IRS Flour & Pasta, & Edible Oils) • Nigeria Oil Mill & BUA Oil • • BUA Sugar Refi
Slide 12: Strategic locations across Nigeria
We operate from strategic locations across Nigeria to capture opportunities LASUCO Sugar Company Rice Mill (North West) Oil Mill (North West) Industrial Complex Limited (“LASUCO Sugar”) (South South) (North Central) Oil Mill Rice Mill Sugar Refinery Lafiagi Sugar Plantation Sugar Refinery Oil Mill (
Slide 13: BUA Foods emerged stronger; strategy on track
BUA Foods emerged stronger and will continue to… Our Strategy is on Ahead of Pre-Pandemic Levels Track Revenue (₦’bn} Revenue (₦’bn} Brand +73.0% +28.3% building Innovation TOPLINE 333.3 90.1 192.9 70.2 FY 2020 FY 2021 Q1 2021 Q1 2022 Consolidation Excellence Profit Before Tax (₦} Profit Before Tax
Slide 14: Sustainability is at the core of how we nourish lives
Sustainability is at the core of how we nourish lives Environmental Responsibility BUA Foods understands the essence of sustainable practices to current and future generations on a local and global scale Compliance Dust Emission Clean Energy CO2 Emission PPM. ✓ Maintains an ISO 14001:2015 certified
Slide 15: Q1 2022 Overview & Strategic Priorities
Q1 2022 Overview & Strategic 3 Priorities
Slide 16: 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 17: Improving market share across all five business divisions
1. Improving market share across all five business divisions Leveraging additional capacity to be onboarded and increasing demand in the consumer market and product offerings Divisions Installed: 1.5mn MTpa Installed: 500,000 MTpa Installed: 250,000MTpa Planned: 220,000 MTpa Planned: 720,000 MTpa Pl
Slide 18: Delivering high quality products at competitive pricing
2. Delivering high quality products at competitive pricing 1 Sugar 64% capacity utilization Brand ▪ A natural ingredient love ▪ Super graded, white crystal ▪ Rich in vitamin A ▪ Possess high nutritional value 2 Flour 84% capacity utilization ▪ Super graded fine flour ▪ Rich in vitamin B, fibres, mag
Slide 19: Boosting capacity through expansion of funding base
3. Boosting capacity through expansion of funding base 18bn 1.04trn Top 6 NGX Listing Ordinary shares in Market Listed company on NGX by market issue of 50 kobo capitalisation (₦)1 each capitalisation1 Q1 2022 FY 2021 Retained Earnings ₦215.5bn ₦192.7bn +11.8% +46.1% Q1 2022 FY 2021 Borrowings ₦223.
Slide 20: Improving proximity to raw materials
4. Improving proximity to raw materials Plants proximity to three major Nigeria port complex Proximity of manufacturing plants to three major Nigerian port complexes (Lagos Port Complex, Tin Can Island Port and Rivers (Lagos Port Port Complex, Tin Can Island Port and Rivers Port Complex) Complex) Pr
Slide 21: Leveraging market expansion and expanding retail footprints
5. Leveraging market expansion and expanding retail footprints Retail market strategy Maintain existing Sugar Number of relationship with • Retail size packaging by Q4 trade and corporate and trade 2022 corporate customers but also • Potential +5% contribution to customers expand retail revenue cust
Slide 22: Q1 2022 Results
4 Q1 2022 Results
Slide 23: Positive performance in Q1 2022
BUA Foods recorded positive performance in Q1 2022 Group Company Grp Coy Description 31st Mar. 2022 31st Mar. 2021 31st Mar. 2022 31st Mar. 2021 Δ% Δ% ₦’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net Revenue 90,066,980 70,202,853 65,875,778 46,588,136 28.3 41.4 Cost of Sales -61,736,953 -45
Slide 24: Underlying revenue growth from pricing and efficiency
Underlying revenue growth from pricing and efficiency +28.3% +16.0% • A solid quarter, with a Sugar ₦54.3 billion strong topline across all three divisions ₦90.1bn • Value growth in +44.3% response to further ₦70.2bn Flour ₦19.9 billion rises in input costs • Carefully managing volume impact around
Slide 25: Positive impact of our growth strategy
Positive impact of our growth strategy EBITDA Operating Profit Profit after Tax +21.4% +15.8% +18.6% ₦27.7bn ₦26.4bn ₦22.8bn ₦22.8bn ₦22.8bn ₦19.3bn Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 36.3 Q1 2021 15.1 ROE +680bps ROA +240bps Q1 2022 43.1 Q1 2022 12.7 Page 25
Slide 26: Managing rising costs across the business divisions
Managing rising costs across the business divisions Inflationary Pressure Levers to Manage Cost of Goods Sold Revenue growth management – Driven by raw materials cost volume planning, pricing actions, (+37.1% y-o-y) and energy cost and new product innovation (+11.7%) General Expense Route optimizati
Slide 27: Continuing to strengthen our balance sheet
Continuing to strengthen our balance sheet -16.7% +6.9% +11.8% ₦28.2bn ₦215.5bn ₦23.5bn ₦207.1bn ₦193.8bn ₦192.7bn Q1 2021 Q1 2022 FY 2021 Q1 2022 FY 2021 Q1 2022 Strong Net Cash from Net Debt within Long-Term Target Strong Growth of Operations is a Catalyst for with Flexibility To Manage Retained E
Slide 28: Summary & Outlook
5 Summary & Outlook
Slide 29: Summary and outlook
Summary and outlook FY 2022 Growth Targets • Our Q2 2022 guidance is driven by topline growth in line with our growth model 15% to 20% Revenue • We are investing in capacity expansion for sustained growth • We have multiple margin levers to drive profitability 15% to 20% Profit after tax • We are a
Slide 30: Thank You
Investor Relations Contact: Adewunmi Desalu Director, Marketing & Corporate Communications Thank You BUA Foods PLC BUA Towers, PC 32, Churchgate Street Victoria Island, Lagos Tel: +234 1 461 0669 ; +234 1 262 3535 Email: ir@buafoodsplc.com
Slide 31: Q&A
Q&A