Zambeef Products Plc · LSE:ZAM
Zambeef Products — H1 2016 Earnings Presentation
21 slides from Zambeef Products's earnings presentation, March 2016
Slide 1: Financial Results for the six months up to 31 March 2016
Financial Results for the six months up to 31 March 2016
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT (“DOCUMENT”) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR GENERAL BACKROUND INFORMATION. THE DISTRIBUTION OF THIS DOCUMENT MAY BE RESTRICTED BY LAW. ACCORDINGLY, THIS DOCUMENT MAY NOT BE DISTRIBUTED IN ANY JURISDICTION EXCEPT IN ACCORDANCE WITH THE L
Slide 3: Introduction
Introduction The Group delivered a strong operational performance for the period. This has been brought about by: Continued focus on the strategic core business: the production, processing, distribution and retailing of its cold chain food products. Aggressive expansion of its retail network.
Slide 4: Highlights
Highlights GROUP REVENUE 2016: ZMW 1122m 70% 2015: ZMW 660m GROUP REVENUE GROUP GROSS PROFIT GROSS PROFIT INCREASED INCREASED From Core Cold Chain GROSS PROFIT by 70% to ZMW 1122m by 62% to ZMW 467m Food Products INCREASED (2015: ZMW 660m) by 39.5% to ZMW 192.2m 2016: ZMW 467m (2015: ZMW 288m) 62% (
Slide 5: 2016 interim financials
2016 interim financials 5
Slide 6: Abridged Income Statement
Abridged Income Statement 31 March 2016 31 March 2015 ZMW'000 ZMW'000 % Change Revenue 1 121 605 659 811 69.99% Cost Of Sales (654 159) (371 573) -76.05% Gross Profit 467 446 288 238 62.17% Other Income - - - Administrative Expenses (312 145) (236 850) -31.79% Administrative Expenses (excluding depr
Slide 7: Abridged Balance Sheet
Abridged Balance Sheet 31 March 2016 31 March 2015 ZMW'000 ZMW'000 Non-Current Assets 1 982 433 1 786 757 Current Assets 793 538 658 626 Total Assets 2 775 971 2 445 383 Capital and Reserves 1 549 613 1 368 993 Non-Current Liabilities 478 335 435 794 Current Liabilities 748 023 640 596 Total Equity
Slide 8: Abridged Cash Flow
Abridged Cash Flow 31 March 2016 31 March 2015 ZMW'000 ZMW'000 Profit/(loss) Before Taxation 110 546 (24 491) EBITDA 175 365 75 220 Movement in Working Capital (87 507) 92 955 Cash inflow/(outflow) from Operating 87 857 168 175 Activities Cash inflow/(outflow) from/(on) investment (83 422) (107 162)
Slide 9: Divisional Revenue and Gross Profit
Divisional Revenue and Gross Profit 2016 2015 2016 2015 Gross Revenue Revenue 2016 2015 Gross Profit 2016 2015 2016 2015 Profit % % of % of % % of Segment ZMW'000 ZMW'000 Chang ZMW'000 ZMW'000 % of Group GP % GP % Group Group Change Group e Beef 249 347 183 219 36.09% 19.38% 21.81% 89 293 65 189 36.
Slide 10: Divisional Review
Divisional Review Cold Chain Food Farming West Africa Products NIGERIA BEEF CROPPING 37.0% 8.1% 71.0% GP: ZMW 89.3m GP: ZMW 21.7m GP: ZMW 105.7m • 4 new Shoprite stores opened in H1 • Beef volumes increased by 22.5% from 6.4m kg’s to 7.8m kg’s • 15,183 Ha planted – predominantly soya, maize and maiz
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Slide 12: Divisional 2016 & 2015 Gross Profit (ZMW’000)
Divisional 2016 & 2015 Gross Profit (ZMW’000) GROSS PROFIT (ZMW’000) Cold Chain Food Products 2016: 192 244 2015: 137 827 2016 105,667 104,846 2015 120,000 97,750 89,293 100,000 65,189 80,000 60,000 36,153 31,301 25,564 24,904 23,149 40,000 21,736 21,564 19,993 14,372 12,711 11,456 9,229 6,422 6,275
Slide 13: Segmental Summary
Segmental Summary % OF GROUP Cold Chain Food Products GROSS PROFIT 2016: 41.13% 2015: 47.82% 2016 2015 40.00% 33.91% 35.00% 30.00% 22.62% 22.61% 22.43% 25.00% 19.10% 20.00% 15.00% 8.87% 8.64% 7.73% 7.48% 6.70% 10.00% 4.99% 4.95% 4.65% 4.41% 4.28% 2.45% 2.23% 2.05% 2.04% 1.97% 1.96% 1.34% 5.00% 1.00%
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Slide 15: Retail
Retail CORE COLD CHAIN FOOD PRODUCT REVENUE 52 SHOPRITE STORES 29 in Zambia, 18 in Nigeria, 5 in Ghana Beef Chicken 97 7 NEW SHOPRITE STORES ZAMBEEF STORES 91 in Zambia, 6 in Nigeria opened during 2016 – 3 in Zambia, 4 in Nigeria Milk Pork 6 MACRO STORES NEW PROCESSING AND & 2 WHOLESALES DISTRIBUTIO
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Slide 17: Outlook
Outlook Focus on Strategic Chicken Breeder Farm, Priorities: West African Hatchery and new Retailing of cold chain meat Expansion Stock Feed Plant at and dairy products Strong operating Mpongwe Farm 4 new Shoprite stores due performance of Unlocking value and capital gains to open in H2 of 2016 Bree
Slide 18: Appendices
APPENDICES 18
Slide 19: The Zambeef Platform in Africa
The Zambeef Platform in Africa Zambia • One of the fastest growing economies in Sub-Saharan Africa (“SSA”) in recent years. • GDP growth averaging >6.5% over last five years and forecast to grow at c.5% over next three years. • Current population of c.15.5 million. • One of the world’s fastest growi
Slide 20: Why Invest In Africa?
Why Invest In Africa? TODAY FUTURE Strengthening external demand is expected to support growth over the GDP Growth Currently 4.2% for 2015 forecast period, with GDP growth projected to rise to 4.6% in 2016 Estimated to increase to 1.4 billion in Population 1.1 billion people in 2015 2025 and 2.5 bil
Slide 21: Contact details
Private Bag 17 Woodlands Plot 4970 Manda Road Industrial Area Lusaka Zambia Tel: +260 211 369 000 Fax: +260 211 369 050 www.zambeefplc.com 21