Bua Foods Plc · NSENG:BUAFOODS
Bua Foods — Q1 2023 Earnings Presentation
25 slides from Bua Foods's earnings presentation, May 4, 2023
Slide 1: Leading With Purpose
Leading With Purpose Investor and Analyst Call – Q1 2023 Performance 4th MAY 2023
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 +30 years combined Industry experience in the following sectors. ❑ Automobile -ASA Workshop ❑ Construction – Servetek Engineering Ltd. ❑ Foods and Beverages ❖ Nigerian Bottling Co. ❖ Royal Beverages ❖ Seven up Bottling Company ❖ The Coca-Cola Company ❑ FinTech –. SecureID Smart Card Manuf
Slide 5: Contents
Contents Section 1 Introduction 2 Key business Highlights 3 Financial Highlights 4 2023 Outlook 5 Q&A 05
Slide 6: SECTION 1: Introduction
SECTION 1: Introduction 06
Slide 7: Our Philosophy
OUR PHILOSOPHY To fulfill Africa’s food demands by promoting food security and nourishing lives To provide high quality foods with a focus on creating long-term value for all stakeholders Our Core Values Respect Innovation Commitment Excellence Give it! It's all about We take our We will always go G
Slide 8: Our Business at a glance
Our Business at a glance Company Structure Factory Locations 5 2 Business Wholly owned Sugar divisions Subsidiaries Rice Flour Edible Oils 8 #2 Largest sugar Plants across the Pasta refinery in West country Africa 100% BUA Sugar Refinery FZE LASUCO Sugar Company 100%Limited >20 #5 Years combined Lar
Slide 9: SECTION 2: Key business highlights
SECTION 2: Key business highlights 09
Slide 10: Highlights of key macro-economic indicators
Highlights of key macro-economic indicators CBN New Cash o Nigerian economy lost an estimated N20 trillion during the cash Policy crunch crisis in Q1 2023. (Source: The Centre for the Promotion of Private Enterprise (CPPE)). o Huge losses arose from the deceleration of economic activities and crippl
Slide 11: Q1 2023 Highlights
Q1 2023 HIGHLIGHTS INSPITE OF THE HEADWINDS, WE REMAIN RESILIENT TO DELIVER S U S TA I N E D G R O W T H P E R F O R M A N C E . o Revenue – 60.2% o Gross Profit Margin – 25.2% ❑ PAT – 77.1% ❑ Net Profit Margin – 15.4% ❑ EPS – 77% o Share price growth- 75.4% o Market Cap – N2.04T 11
Slide 12: Q1 2023 Highlights
Q1 2023 HIGHLIGHTS A G G R E G AT E D S A L E S V O L U M E G R O W T H - 1 8 % . Delivering revenue growth across our product segments. • Sugar – 72% • Flour – 58% • Pasta – 22% Rice divisions starting up @ 384M o 23% reduction in Water use (m3/ton) 12
Slide 13: Q1 2023 Lowlights
Q1 2023 LOWLIGHTS W I T H T H E U N E N D I N G D I S R U P T I O N S I N T H E B U S I N E S S C L I M AT E , W E C O N T I N U E T O H E D G E A G A I N S T R I S I N G C O S T. Cost: o Raw materials – 46% o Energy – 40% o S&D = 787% o Admin Expenses – 72.4% ESG o GHG(Kg./ton) – 17.8% o Air Qualit
Slide 14: YTD 2023 Key Achievements
YTD 2023 Key Achievements 1. Board declaration of N4.50 Dividend 2. Share price growth @72.5% with current market cap at N2.04T 3. Market expansion +70% vs same prior year 4. Commercialized additional 720MTPA Flour 5. Commercialized 200KMTPA Rice Mill. 14
Slide 15: re sweetness
re sweetness in every grain m VAN PREMIUM WHEAT Like you, we put cur heart inte it
Slide 16: SECTION 3: Financial Highlights
SECTION 3: Financial Highlights 16
Slide 17: BUA Foods maintained double digit growth and strong performance in Q1 2023
BUA Foods maintained double digit growth and strong performance in Q1 2023 Group In thousands of naira Q1 2023 Q1 2022 Δ Revenue 144,318,353 90,066,980 60.2% Cost of Sales 87,660,700 61,736,953 42% Gross Profit 56,657,653 28,330,027 100% Gross Margin (%) 39.3% 31.4% 790bps Selling and distribution e
Slide 18: Aligned strategic action in driving revenue growth from volume, pricing and product mix
Aligned strategic action in driving revenue growth from increase in volume, pricing and product mix. +71.7% ❑ Aggregate volume ₦93.2 billion growth by 18% +60.2% ❑ Strategic Price adjustment to reflect +57.8% ₦31.3 billion the rise in input cost ₦144.3bn ₦90.1bn ❑ Export sales impacting the west Afr
Slide 19: Effective management of costs across the business divisions
Effective management of costs across the business divisions, even as aggregate volume grew by 18% Inflationary Pressure Levers deployed to manage such pressure Revenue growth management – volume planning, pricing actions to reflect market realities +46% +42% Raw material & FX sourcing dynamics +33.8
Slide 20: Strong positive impact of growth across key performance ratios
Strong positive impact of growth across key performance ratios EBITDA Operating Profit Profit after Tax +87% +81.7% +77.1% ₦50.6bn ₦48.2bn ₦40.5bn ₦27.1bn ₦26.5bn ₦22.8bn Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 ROE (%) Q1 2022 ROA (%) 9.9% 3.7% +243bps +501bps Q1 2023 Q1 2023 6.2% 14
Slide 21: We remain committed to strengthening our balance sheet
We remain committed to strengthening our balance sheet as we leverage emerging opportunities Strong total asset with Capital risk management by Continuous growth of consistent growth Reducing Net Term Borrowing with Retained Earnings improved Gear Ratio +18.2% +6.9% -28% 79.7% ₦263.4bn ₦6649.6bn ₦60
Slide 22: SECTION 4: 2023 Outlook
SECTION 4: 2023 Outlook 22
Slide 23: Outlook for 2023
Outlook for 2023: We remain commitment to deliver superior value to our shareholders in the mid to long-term leveraging our Unique Strategic Business Model. FY 2023 Growth Targets Double digits Grow Revenue - commercialization of Rice, Flour Grow and Pasta additional capacities. growth in Revenue Ex
Slide 24: Thank You
THANK YOU Investor Relations Contact: Gabriel Fapojuwo | Investor Relations Manager BUA Foods Plc: PC 32, Churchgate Street,Victoria Island. Tel: +234 14610669, +234 8166723182 Contact Us: info@buafoodsplc.com | Email: customerservice@buafoodsplc.com | Website: www.buafoodsplc.com buafoods
Slide 25: Fortified
FORTIFIED WITH VITAMINS AND MICRO NUTRIENTS 8 3 3 ES i