Zambeef Products Plc · LSE:ZAM
Zambeef Products — H1 2019 Earnings Presentation
30 slides from Zambeef Products's earnings presentation, March 2019
Slide 1: Financial Results for the six months to 31 March 2019
ZAMBEEF PRODUCTS PLC Financial Results for the six months to 31 March 2019
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 ❑ During the first six months of the financial year Zambeef faced very challenging macroeconomic conditions which resulted in less disposable income for our customers. ❑ The weakening Kwacha also led to higher input costs for the Group which could not be passed onto the consumer. This h
Slide 4: Highlights
Highlights ❑ Our Retail and Cold Chain Food Production division has continued to deliver strong revenue growth. ❑ Good revenue growth in our stockfeed division but margins down. ❑ Strong demand for day old chicks but at reduced margins. ❑ Masterpork has continued to be profitable ❑ Our Milling divis
Slide 5: Overview
Overview Continued rollout of Volume Growth West Africa turn around Strong Revenue Zambeef Macro outlets & Shoprites growth from Retailing Volumes up in Turn around of our West H1 2019 Stockfeed division and Africa operations to Profit Stockfeed, and Wheat Macro Stores 30 Mill division Wheat Mill ma
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Slide 7: Abridged Income Statement
Abridged Income Statement 31-Mar-19 31-Mar-18 % Change 31-Mar-19 31-Mar-18 % Change ZMW'000 ZMW'000 (ZMW) USD'000 USD'000 (USD) Revenue 1,416,490 1,226,083 15.53% 118,833 123,847 -4.05% Gross Profit 470,570 461,152 2.04% 39,477 46,581 -15.25% Other Income 0 0 0 Administrative Expense (459,193) (398,
Slide 8: Abridged Balance Sheet
Abridged Balance Sheet 31-Mar-19 31-Mar-18 30-Sep-18 31-Mar-19 31-Mar-18 30-Sep-18 ZMW'000 ZMW'000 ZMW'000 USD'000 USD'000 USD'000 Non Current Assets 3 123 611 2 824 657 3 084 434 256 243 297 959 251 996 Current Assets 1 092 947 1 199 915 981 541 89 659 126 573 80 191 TOTAL ASSETS 4 216 558 4 024 57
Slide 9: Abridged Cash Flow Statement
Abridged Cash Flow Statement 31-Mar-19 31-Mar-18 31-Mar-19 31-Mar-18 ZMW'000 ZMW'000 USD'000 USD'000 Profit/(loss) before taxation (30 156) 27 293 (2 531) 2 758 EBITDA 81 601 109 671 6 845 11 112 Net cash inflow from operating activities (99 766) (75 249) (8 370) (9 813) Movement in Working Capital
Slide 10: Segmental Distribution of Gross Profit
Segmental Distribution of Gross Profit 2019 2018 Others, 3.7% Others, 1.8% Crop-Row Crop-Row Crops, Crops, 17.3% 19.8% Retail & CCFP, 60.0% Retail & CCFP, 62.7% Stock Feed, Stock Feed, 18.2% 16.5% % of Group Gross Profit
Slide 11: Financial Overview
Financial Overview Revenue Gross Profit 15.5% H1/2019: ZMW 1.42bn 2.0% H1/2019: ZMW 470.6m (ZMW) (ZMW) H1/2018: ZMW 1.23bn H1/2018: ZMW 461.2m 4.1% H1/2019: USD 118.8m 15.3% H1/2019: USD 39.5m (USD) (USD) H1/2018: USD 123.8m H1/2018: USD 46.6m EBITDA Adjusted Profit/(loss) 26.3% H1/2019: ZMW 81.6m 2
Slide 12: Divisional Overview (ZMW)
Divisional Overview (ZMW) Retail & CCFP Stockfeed Revenue Revenue H1/2019: ZMW 1.01bn H1/2019: ZMW 412.3m 7.2% 34.1% H1/2018: ZMW 941.31m H1/2018: ZMW 307.6m EBITDA EBITDA 27.1% H1/2019: ZMW 71.9m 31.8% H1/2019: ZMW 30.6m H1/2018: ZMW 98.7m H1/2018: ZMW 44.9m Cropping Other (continuing) Revenue Reve
Slide 13: Divisional Overview (USD)
Divisional Overview (USD) Retail & CCFP Stockfeed Revenue Revenue 11.0% H1/2019: USD 84.6m 11.3% H1/2019: USD 34.6m H1/2018: USD 95.1m H1/2018: USD 31.1m EBITDA EBITDA 39.5% H1/2019: USD 6.0m 43.4% H1/2019: USD 2.6m H1/2018: USD 10.0m H1/2018: USD 4.5m Cropping Other (continuing) Revenue Revenue H1/
Slide 14: Retailing Network
Retailing Network Actual Actual Actual Actual H1 2019 2018 2017 2016 Zambia Zambeef Outlets 66 67 81 87 Zambeef Macros 31 29 19 10 Novatek 26 26 17 10 Zamshu Outlets 23 19 12 2 Bakery 1 1 0 0 147 140 129 109 Shoprites 36 34 31 31 Total Zambia 183 174 160 140 Nigeria Shoprite 25 25 23 20 ❑ Revenue gr
Slide 15: 05-31-2019 Frit
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Slide 16: Retailing Revenue Channel Analysis (ZMW'000)
Retailing Revenue Channel Analysis (ZMW’000) 1.9% 313,198 307,107 30.8% 256,099 195,732 1.9% 2019 79.5% 2018 142,047 139,424 113,175 13.0% 63,058 63,681 56,354 OUTLETS MACROS SHOPRITE NOVATEK OTHER 2019 Other, Outlets, 2018 Other, 7.2% 34.8% Novatek, 7.3% Novatek, 8.2% 12.8% Outlets, 40.8% Shoprite,
Slide 17: Chila
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Slide 18: Retailing Revenue Channel Analysis (USD'000)
Retailing Revenue Channel Analysis (USD’000) 18.6% 31,636 25,764 8.7% 21,485 19,771 15.4% 2019 2018 14,083 49.1% 11,917 9,495 6.1% 6,369 5,692 5,342 OUTLETS MACROS SHOPRITE NOVATEK OTHER 2019 Other, Outlets, 2018 Other, 7.2% 34.8% Novatek, 7.3% Novatek, 8.2% 12.8% Outlets, 40.8% Shoprite, 18.2% Shop
Slide 19: Stockfeed P&L
Stockfeed P&L H1 2019 H1 2018 H1 2019 H1 2018 ZMW'000 ZMW'000 % Change USD'000 USD'000 % Change Revenue 412 344 307 598 34.1% 34 593 31 071 11.3% Gross Profit 77 544 82 809 (6.4%) 6 505 8 365 (22.2%) Overheads (46 905) (37 867) 23.9% (3 935) (3 825) 2.9% EBITDA 30 639 44 942 (31.8%) 2 570 4 540 (43.
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Slide 21: Cropping P&L
Cropping P&L H1 2019 H1 2018 % H1 2019 H1 2018 % ZMW'000 ZMW'000 Change USD'000 USD'000 Change Revenue 110 356 150 529 36.4% 12 628 11 147 13.3% Gross Profit 93 323 78 791 18.4% 7 829 7 959 -1.6% Overheads (56 530) (54 920) 2.9% (4 742) (5 547) -14.5% EBITDA 36 793 23 871 54.1% 3 087 2 411 28.0% ❑ C
Slide 22: Mpongwe Farm
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Slide 23: Other Divisions P&L
Other Divisions P&L H1 2019 H1 2018 % H1 2019 H1 2018 % ZMW'000 ZMW'000 Change USD'000 USD'000 Change Revenue 96 129 66 002 45.6% 8 065 6 667 21.0% Gross Profit 17 424 8 289 110.2% 1 462 837 74.6% Overheads (12 413) (13 291) -6.6% (1 041) (1 343) -22.4% EBITDA 5 011 -5 002 200.2% 420 -505 183.2% ❑ Z
Slide 24: Capex
Capex Main Capital Expenditure during H1: ❑ USD 1.4m on rollout of new Zambeef Macro outlets and transport fleet; ❑ USD 1.2m on expansion of the Zamhatch hatchery and breeder farm; ❑ USD 0.7m on farming replacement Capex; ❑ USD 0.4m on stockfeed operations; ❑ USD 0.2m on Zam Chick Limited;
Slide 25: Outlook for H2 2019
Outlook for H2 2019 ❑ We anticipate macro-economic conditions to remain challenging in the second half with continued downward pressure on disposable incomes. ❑ The continued volatility of the kwacha and negative market sentiment is likely to continue to keep margins under pressure. ❑ However we exp
Slide 26: Outlook for H2 2019
Outlook for H2 2019 ❑ We also decided to dispose of non-core assets in order to generate cash,pay down debt and reduce gearing. ❑ In line with this strategy we have already completed the following corporate actions: ❑ 1.Disposal of 100% of Zamanita Ltd in 2015 to Cargill BV for a total consideration
Slide 27: Appendices
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Slide 28: Appendix 1: Segmental Revenue, GP & EBITDA (ZMW'000)
Appendix 1: Segmental Revenue, GP & EBITDA (ZMW’000) Revenue 2019 Revenue 2018 Gross Profit Gross Profit Overheads Overheads EBITDA 2019 EBITDA 2018 Division Actual Actual 2019 Actual 2018 Actual 2019 Actual 2018 Actual Actual Actual ZMW'000 ZMW'000 ZMW'000 ZMW'000 ZMW'000 ZMW'000 ZMW'000 ZMW'000 Re
Slide 29: Appendix 2: Segmental Revenue, GP & EBITDA (USD'000)
Appendix 2: Segmental Revenue, GP & EBITDA (USD’000) Revenue 2019 Revenue 2018 Gross Profit Gross Profit Overheads Overheads EBITDA 2019 EBITDA 2018 Division Actual Actual 2019 Actual 2018 Actual 2019 Actual 2018 Actual Actual Actual USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 Re
Slide 30: Thank you.
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