Guinness Nigeria Plc · NSENG:GUINNESS
Guinness Nigeria — H1 F24 Earnings Presentation
26 slides from Guinness Nigeria's earnings presentation, January 2024
Slide 1: Cautionary Statement Concerning Forward-Looking Statements
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS • This presentation is based on Guinness Nigeria Plc’s unaudited financial results for Half Year period ended 31s t December 2023. Guinness Nigeria Plc (“GN” or the “Company”) has obtained some information in this presentation from sources i
Slide 2: Guinness Nigeria Half Year Results Investors' Conference Call
Uv GUINNESS Adebayo Alli, Managing Director/ Chief Executive Officer Emmanuel Difom, Finance & Strategy Director Rotimi Odusola, Corporate Relations Director N V E STO RS and other members of the Guinness Nigeria CON FERENCE Executive team. Lng ae z JANUARY : 6302024 12,00 (WAT) ‘
Slide 3: Agenda
AGENDA HALF YEAR F24 Half Year Review Adebayo Alli RESULTS F24 Half Year Financial Performance Review INVESTORS’ Emmanuel Difom CALL F24 H2 Priorities Adebayo Alli Q&A Rotimi Odusola 3
Slide 4: F24 Half Year Review
F24 Half Year Adebayo Alli Managing Director/Chief Executive Officer Review 4
Slide 5: F24 – Resilience Despite Headwinds
F24 – R ESILIENCE DESPITE HEA DWINDS FX Scarcity and Inflation Naira Devaluation @ 29% Volatile Increased Tax and Fuel Price Regulatory Insecurity * Confidential-Diageo Recipients Only *
Slide 6: F24 Mission
F24 MISSION To mitigate the impact of the challenging environment, we … LEVERAGE REVENUE GROWTH MANAGEMENT TO OPTIMISE REVENUE EFFICIENT AND EFFECTIVE USE OF A&P TO BUILD BRAND EQUITY PRODUCTIVITY & CONTROL BUSINESS SUSTAINABILITY F24 Mission 6
Slide 7: F24 Business Imperative
F24 MISSION MINDSET Accelerate the introduction of high volumes local MSS & Innovation LAD SKUs F24 Sustainability Actualize the import substitution agenda Business Talents Develop L&D Agenda for L4s Imperative Brand equity Drive mental availability for BG, Reserves and Premium core SC Agility Adapt
Slide 8: Delivering Strong Underlying Growth
DELIVERING STRONG UNDERLYING GROWTH Strong F24 Half Volume Net sales Operating Year results across value Profit key financial growth growth metrics 4 Year organic 14.7% 20.4% 30.7% NSV CAGR +21.4% Results Fiscal 24 HY * Confidential-Diageo Recipients Only * Source: GN internal information
Slide 9: The Results: Double Digit Revenue Growth
THE RESULTS : Double digits growth in revenue despite the challenging external environment. BRAND MAINSTREAM PREMIUM SPIRITS RTDs MALTS GUINNESS SPIRITS +7% +11% +19% +29% 41% vs. vs. vs. vs. vs. HY23 HY23 HY23 HY23 HY23 9
Slide 10: Embedding Our Brands in Culture
EMBEDDING OUR BRANDS IN CULTURE
Slide 11: Driving Salience Through Scaled Media Investment
DRIVING SALIENCE THROUGH SCALED MEDIA INVESTMENT
Slide 12: Grain to Glass Sustainability
GRAIN TO GLASS SUSTAINABILITY: Working r across our value chain to preserve water for life, become sustainable by design and accelerating to a low carbon world… WATER OF LIFE PROJECTS IN OYO STATE • 3 Units Motorized water infrastructures; • Renewable energy powered with the use of solar energy. • E
Slide 13: Inclusion & Diversity
r INCLUSION & DIVERSITY: Championing inclusion & Diversity across our business with our partners & communities to help celebrate diversity and help shape a tolerant society RENOVATION OF GUINNESS EYE CENTRE • Comprehensive re-roofing and structural restoration of the 30-year old facility; • Circa NG
Slide 14: Stakeholder Engagement
STAKEHOLDER ENGAGEMENT Sustained engagement with all stakeholder groups, including the media and KOF
Slide 15: People
PEOPLE Talent Employee Engagement Inclusion and Diversity Female GMT Roll out of a Q2 Female Program series of representation successfully financial increased to completed, wellbeing and talents settled into sessions to build literacy 33% junior and capability against F24 leadership target of 34% Vi
Slide 16: F24 Half Year Financial Highlights
F24 Half Year Emmanuel Difom Financial Highlights Finance & Strategy Director 16
Slide 17: F24 HY Highlights and Lowlights
F24 HY HIGHLIGHTS o Improved topline performance vs +20% vs LY o Highest OND ever (Revenue generation) o YoY Productivity savings: N3.2bn o Employee engagement remains higher amidst a though environment o Overall green ratings on our Controls (Internal & External Audit) F24 HY LOWLIGHTS o NGN Devalu
Slide 18: Revenue - Contribution by Category
REVENUE - CONTRIBUTION BY CATEGORY Weight 34.8% of 30.7% Revenue 18.7% 9.1% 6.6% Mainstream Brand RTDs Premium Malts Spirits Guinness Spirits F24 HY Revenue 11% 7% 29% 19% 41% vs Growth F23 HY
Slide 19: Operating Profit Before Tax Causal
OPERATING PROFIT BEFORE TAX CAUSAL (bn’NGN) 44.8 0.9 2.3 -1.4 5.4 Roll over Roll over 22.4 New 21.2 New -26.6 6.1 2.8 22.4 1.3 7.2 1.4 1.4 8.1 15.8 0.2 -4.4 F23 H1 Net Vol/Mix Price Duty (Cost, Inflation COGS FX Expenses Other FX Loss Fin F24 H1 OP After Recovery) net of Income Income & OP After FX
Slide 20: Comprehensive Income Statement
COMPREHENSIVE INCOME STATEMENT NGN bn F24 F23 vs F23 Net Sales 142.6 118.5 20.4% Cost of Sales (96.7) (76.2) 26.9% Gross Profit 45.9 42.3 8.6% Other Income 2.5 1.0 163.5% Expenses (32.1) (30.7) 4.4% EBIT 16.4 12.5 30.7% Finance Income/(Exp) 0.7 0.5 50.7% FX Loss (21.5) (5.8) 272.3% Profit/(Loss) Bef
Slide 21: F24 H2 Priorities
F24 H2 Priorities Adebayo Alli Managing Director/Chief Executive Officer 21
Slide 22: F24
F24 * Confidential-Diageo Recipients Only *
Slide 23: External Landscape
EXTERNAL LANDSCAPE Immediate headwinds Future Opportunities & Risks Community Macro-economic volatility E-Commerce & Experience-Oriented Empowerment & Tech adoption Consumption Sustainability Inflation Government Regulations * Confidential-Diageo Recipients Only *
Slide 24: Macro Headwinds to Persist
MACROS HEADWINDS TO PERSIST Low Real GDP growth High Inflation Slow Oil production growth Exchange rate turbulence Alcoholic Beverage, Tobacco I&E Parallel Food Price ($/bbl) - LHS axis Headline Inflation 32.8 1300 1237 Production (million bbl/d) - RHS axis 5.1 4 4 120 2.5 1200 3.5 3.5 3.1 2.3 2.3 2
Slide 25: Market Landscape and Key Implication for GN
MARKET LANDSCAPE AND KEY IMPLICATION FOR GN ▪ Inflationary pressure will persist: FX devaluation, removal of fuel subsidies, etc ▪ Erosion of consumer purchasing power. ▪ Regulatory changes We continue to evolve our plans to navigate the headwinds and seize market opportunities Implication for GN: G
Slide 26: Q&A
Q&A Rotimi Odusola Corporate Relations Director 26