Guinness Nigeria Plc · NSENG:GUINNESS
Guinness Nigeria — H1 FY2013 Earnings Presentation
26 slides from Guinness Nigeria's earnings presentation, Feb 12, 2013
Slide 1: Guinness Nigeria PLC H1 F'13 Performance Investor Briefing
DIAGEO Guinness Nigeria PLC H1 F’13 Performance Investor Briefing Seni Adetu, Managing Director /CEO Lisa Nichols, Finance/Strategy Director Sesan Sobowale, Corporate Relations Director 12th February 2013
Slide 2: Outline of H1 F'13 Performance Briefing
DIAGEO Outline of H1 F’13 Performance Briefing • Introduction Seni Adetu • Guinness Nigeria Vision Seni Adetu • Summary of Financial Performance Seni Adetu • Financial Performance Lisa Nichols • Strategic Priorities Seni Adetu • Q&A Sesan Sobowale 2
Slide 3: Guinness Nigeria Vision
DIAGEO Guinness Nigeria Vision Seni Adetu, Managing Director & CEO
Slide 4: GNplc is well-positioned to win in Nigeria
DIAGEO GNplc is well-positioned to win in Nigeria Vision Statement Guinness Nigeria will be the most iconic company in Nigeria • History in Nigeria for 62 years • Strong portfolio diversity including alcoholic and non-alcoholic beverages covering a wide range of consumer segments • Commitment to sig
Slide 5: YoY pricing and production efficiencies helped deliver a positive Gross Profit
DIAGEO YoY pricing and delivery of production efficiencies helped deliver a positive Gross Profit H1 F'13 vs. H2 F'12 Revenue +5% Gross Profit +1% Advert. & Prom. Exp. +6% Distribution Exp. +1% Admin. Exp. +6% -22% Operating Profit -4% Net Other Fin. cost >-100% 995k Profit Before Tax -16% 5
Slide 6: FY13 H1 – Financial Update
DIAGEO FY13 H1 – Financial Update Lisa Nichols Finance/Strategy Director
Slide 7: GNplc H1 FY13 results
DIAGEO GNplc H1 FY13 results Statement of Comprehensive Income 6 months ended 6 months ended Growth 31-Dec-2012 31-Dec-2011 N'm N'm % Revenue 65,689 62,843 5% Cost of sales (37,158) (34,726) 7% Gross profit 28,531 28,117 1% Advertising and promotion expenses (5,658) (5,362) 6% Distribution expenses
Slide 8: Summarised balance sheet
DIAGEO Summarised balance sheet Statement of financial position As at As at 31-Dec-2012 31-Dec-2011 N'm N'm Assets Non-current assets Intangible assets 629 856 Property, plant and equipment 82,716 61,165 Other long term debtors and prepayment 443 540 Deferred tax Asset 1,606 1,614 85,394 64,174 Curr
Slide 9: Drivers of revenue
DIAGEO Drivers of revenue Drivers of revenue – Dec 2012 vs. Dec 2011 (Nb) 1.8 0.1 1.0 1.7 65.7 5.5 62.8 Dec 2011 Price increases Volume Export sales Trade discounts Product mix Dec 2012 downside 9
Slide 10: Drivers of profit
DIAGEO Drivers of profit Dec-2012 Dec-2011 N'm N'm Gross profit 28,531 28,117 Advertising and promotion (5,658) (5,362) Distribution (7,099) (7,041) Administrative expenses & other (4,580) (4,085) Operating profit 11,193 11,628 Net other finance income / (cost) (1,753) (425) Profit before taxation 9
Slide 11: Strategic Priorities
DIAGEO Strategic Priorities Seni Adetu Managing Director & CEO
Slide 12: Strategic Imperatives
DIAGEO Strategic Imperatives Vision: Most iconic company in Nigeria Superior Total Shareholder Most Reputable in the Employer of Choice Returns Community Winning with Sustainable RTM/Sales Capacity & our Brands Innovation Execution COGS Employee Exceptional Talent Engagement Performance Culture Deve
Slide 13: Superior Total Shareholder Returns
DIAGEO Strategic Imperative Superior Total Shareholder Returns
Slide 14: We Brilliantly Executed Our Marketing Plan in H1
DIAGEO We Brilliantly Executed Our Marketing Plan in H1 Guinness Harp Malta Guinness Smirnoff Ice ‘Table of Men’ campaign Arsenal participation EPL broadcast sponsorship Malta Guinness Low Sugar ‘Fly With The Eagles’ campaign and sampling campaign MGLS distribution drive ‘Guinness Mega
Slide 15: Innovation – SNAPP expansion nationally
DIAGEO Innovation – SNAPP expansion nationally
Slide 16: We Brilliantly Executed Our Sales Plan in H1
DIAGEO We Brilliantly Executed Our Sales Plan in H1 Project Cold Guinness Distribution Centre (GDC) • 1300 chillers delivered in • Rural distribution H1 • Expanded availability • Delivers against ‘cold is king’ opportunity • Improved price compliance • Distribution – 50% Cold space, deliver 3-5 degr
Slide 17: Our branding programmes cut across the value chain
DIAGEO Our branding programmes cut across the value chain Key Distributor Warehouse Wholesaler Warehouse • Win share of mind with • Several warehouses key distributors already branded • Be visible • Improved distribution at wholesale. • Restore confidence to distributors and trade • Improved relatio
Slide 18: Our trade assets & events excited trade & consumers
DIAGEO Our trade assets & events excited trade & consumers Trade Assets Van Branding • Tables & chairs distributed to trade in H1, more in H2 • Top of the mind awareness for our brands • >Significant number of vans already branded, • Win with consumers & trade more in H2 • Winning at the moment of c
Slide 19: We have made major investments in our Supply base
DIAGEO We have made major investments in our Supply base H1 – Completed Projects Benin line 10 DPV stairway installation processing Benin Line 10 office gate Benin CO2 plant BBT stairway New cullet area Benin air-building Benin warehouse
Slide 20: Employer of choice
DIAGEO Strategic Imperative Employer of choice
Slide 21: We are building a winning organisation as employer of choice
DIAGEO We are building a winning organisation that stands us out as the employer of choice H1 - events & award All staff conference hosting 1500+ employees + some Diageo Africa ‘The Best Place to Work’ in Nigeria Embedded our values Exec Award in FY 2012 Pathway of Pride III Talent initiat
Slide 22: Most reputable in the community
DIAGEO Strategic Imperative Most reputable in the community
Slide 23: GN as a good corporate citizen strengthens her reputation
DIAGEO GN as a good corporate citizen in the community strengthens her reputation Quality & Safety Responsible Drinking & Community Investments Harp Lager & Malta Guinness •Responsible drinking campaign •Drink driving awareness in Dec •52nd Independence Day Golf won the 2012 Monde Gold •40 childre
Slide 24: As we look forward our key priorities will be
DIAGEO As we look forward our key priorities will be: • Invest to accelerate topline growth and win share across segments – Premiumization – Value segment • Create profitable and sustainable innovation in key segments • Drive competitive route to market that delivers outlet universe coverage, engage
Slide 25: Summary
DIAGEO Summary • Attractive economic fundamentals • Consumer trends in our favour • GNplc well positioned to win and become the most iconic company in Nigeria 25
Slide 26: Questions?
DIAGEO Questions?