Tiger Brands Limited · JSE:TBS
Tiger Brands — H1 2005 Earnings Presentation
22 slides from Tiger Brands's earnings presentation, Mar 31, 2005
Slide 1: Tiger Brands Ltd Investor Presentation Interim Results
Tiger Brands Ltd Investor Presentation Interim Results 31 March 2005
Slide 2: Agenda
Agenda • Major highlights for 6 months to March 2005 N. Dennis • Financial Overview N.P. Doyle • Business Overviews – Food M.H. Franklin M.C. Norris – Healthcare M.C. Norris – Fishing R.V. Smither – International R.V. Smither • Outlook N. Dennis • Questions
Slide 3: Major Highlights for 6 months to March 2005
Major Highlights for 6 months to March 2005 • Satisfactory trading environment, good volume growth, very low inflation. • Good performance from food (excluding maize and dairy), excellent performance from healthcare, poor results from fishing. • Volume growth of brands coupled to cost containment =
Slide 4: Income Statement to 31 March 2005
Income Statement to 31 March 2005 Rm 2005 2004 Change 2004 Proforma % Revenue 7,460 7,069 6 12,719 Continuing operations 7,460 6,917 8 6,493 The Spar Group Limited - - 6,074 Discontinued operations - 152 152 Operating income before amortisation of intangibles 1,048 915 15 1,130 Continuing operations
Slide 5: Group Balance Sheet at 31 March 2005
Group Balance Sheet at 31 March 2005 Rm March March March 2005 2004 2004 Proforma Assets Fixed assets and goodwill 1,861 1,832 2,408 Investments 2,450 2,213 2,256 Current assets 4,492 4,659 6,074 Cash 1,715 1,135 1,040 10,518 9,839 11,778 Equity and liabilities Shareholders equity 3,728 2,950 3,624
Slide 6: Cash Movement to 31 March 2005
Cash Movement to 31 March 2005 Rm Mar 2005 Cash operating profit 1,176 Net Financing costs/Investment Income (54) Working capital (216) Cash generated from operations 906 Tax paid (256) Capex (110) Investments (37) Share buy back (241) Proceeds from shares issued 28 Dividends paid (451) Other moveme
Slide 7: Key Financial Ratios March 2005
Key Financial Ratios 31 March 2005 Proforma 2005 2004 Operating Margin % (continuing) 14.1 13.2 Interest cover (times) 13.8 8.2 Net debt/equity % 34 63 Working Capital per R1 of sales (cents) 20.4 20.7
Slide 8: Portfolio Performance (continuing operations) 31 March 2005
Portfolio Portfolio Performance Performance (continuing continuing operations) operations) ~ 31 31 March March 2005 2005 ~~ Rm Operating Variance Operating Income Margin 2005 2004 % % % FMCG – DOMESTIC 565 507 11.2 10.7 10.4 Domestic Food 461 422 9.4 9.8 9.7 Grains 247 235 5.1 10.8 10.9 - Milling an
Slide 9: Food Overview
Food Overview • Maize – Significant crop – price reduction – competition. – Randfontein degermination installation. – Pietermaritzburg – maize mill closure – less dependence on maize going forward. • Flour – Short local crop – import parity pricing. – Volume growth and efficiency gains. – Pietermari
Slide 10: Food Overview
Food Overview • Bread – Volume growth – market share gains. – Innovation – Best of Both. – Value adding investments in technology. – West Rand bakery re-opening. • Rice – Change in consumption patterns. – Significant brands growth – market share gains. – Benefit from strong Rand.
Slide 11: Food Overview
Food Overview • Cereals – Growth in RTE cereals: • Jungle Energy Crunch • Flavoured Morvite – Oats plant refurbishment. • Value Added Meat Products – Volume growth – market share gains. – New product innovation. – Competitive environment/margin pressure.
Slide 12: Food Overview
Food Overview • Dairy – Successful launch of multi-pack yoghurt. – Volume growth in value added products. – Commodity pricing – cheese/UHT milk. • Exports – “Stable” currency = lower translation losses. – Business rationalized. – Internal efficiencies, particularly in deciduous fruit. – Deciduous fr
Slide 13: Food Overview
Food Overview • Groceries – Appropriate brand activation. – Double digit volume growth. – Market share gains. – Pasta turnaround. – Continuous improvement. – Excellent performance from spreads. • Snacks and Treats – Sustainable turnaround in profitability. – 5% volume growth. – Chocolate market shar
Slide 14: Consumer Healthcare
Consumer Healthcare • Personal Care – Growth from major brands • Ingrams Camphor Cream • Lemon Lite • Dolly Varden – Continuous improvement. • Baby Care – Significant organic growth in nutrition stimulated by cereals. – Innovation in wellbeing and nutrition. – Leveraging Elizabeth Anne’s beyond baby
Slide 15: Consumer Healthcare
Consumer Healthcare • Homecare – Good insecticide season. – Factory integration completed. – Sanitary care and air fresheners challenged • future is about strengthening the margin. • Investing in innovation.
Slide 16: Pharmaceuticals
Pharmaceuticals • Branded Medicines – Organic growth from core brands – Market share gains • Myprodol • Lentogesic • Macaine • Synap Forte • Zildem • Inteflora • Pynstop • Corenza C – Growth in number of prescriptions. – Acquisition of Donmed.
Slide 17: Pharmaceuticals
Pharmaceuticals • Generic Medicines – Good volume growth. – Market share gains. – Growth from newer product introductions • Adco-Simvastatin • Adco-Amoclav • Adco-Zolpidem • Acnetane • Adco-Omeprazole • Talomil • Further 14 – Growth in number of prescriptions. – Good leverage off volume growth. – Co
Slide 18: Pharmaceuticals
Pharmaceuticals • OTC (Schedule 0) – Category in low growth. – Major brands growing in line with category. – Acquisition of Vitathion. • Hospital Products – Continuous improvement. – Introduction of new products • Medicine delivery – 59 products. • Transfusion therapy – 2 products. • Renal – 6 produ
Slide 19: Fishing Overview
Fishing Overview • Sea Harvest – Draft policy for allocation of fishing rights. – Half year results negatively impacted by small fish, stronger Rand, higher fuel costs, loan provisions and asset impairment. – Namfish effectively in provisional liquidation. – New market for small fish established.
Slide 20: Fishing Overview
Fishing Overview • Oceana – Draft policy for allocation of fishing rights. – Half year results negatively impacted by slow start to pilchard and crayfish season, low volumes and prices for fishmeal, low prices for Namibian horsemackerel, loan provisions and asset impairment in Namibian whitefish ope
Slide 21: International
International • The contribution from Carozzi for 6 months to February 2005 was 30% higher in Pesos and 24% higher in Rands. • Good performances were achieved in pasta, biscuits, confectionery and fruit puree. Tomato paste results were lower than the previous year. • The contribution from C&T Malt f
Slide 22: Outlook
Outlook • Reduced dividend cover plus share buy back positive for shareholders. • Trading conditions continue to be positive, outlook for year encouraging but not to same degree as first half. • Towards 2010.