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: Overview
Overview HIGHLIGHTS OPERATING PROFITS 2016: USD 13.7m 72% OPERATING PROFITS OPERATING PROFIT COST to INCOME RATIO 2015: USD 8.0m INCREASED MARGIN INCREASED DECREASED by 72% to USD 13.7m to 13.85% TO 24.56% (2015: USD 8.0m) (2015: 7.79%) (2015: 31.52%) PROFIT AFTER TAX 2016: USD 8.96m 367% 2015: USD
Slide 5: 2016 interim financials
2016 interim financials 5
Slide 6: Abridged Income Statement
Abridged Income Statement 31 March 2016 31 March 2015 USD'000 USD'000 % Change Revenue 98 820 102 138 -3.25% Cost Of Sales (57 634) (57 519) -0.20% Gross Profit 41 185 44 619 -7.70% Other Income - - - Administrative Expenses (27 502) (36 664) 24.99% Administrative Expenses (excluding depreciation) (
Slide 7: Abridged Balance Sheet
Abridged Balance Sheet 31 March 2016 31 March 2015 USD'000 USD'000 Non-Current Assets 177 637 234 483 Current Assets 71 106 86 434 Total Assets 248 743 320 916 Capital and Reserves 138 854 179 658 Non-Current Liabilities 42 862 57 191 Current Liabilities 67 027 84 068 Total Equity and Liabilities 24
Slide 8: Abridged Cash Flow
Abridged Cash Flow 31 March 2016 31 March 2015 USD'000 USD'000 Profit Before Taxation 9 740 (3 791) EBITDA 15 451 11 644 Movement in Working Capital (7 710) 14 392 Cash inflow/(outflow) from Operating Activities 7 741 26 036 Cash inflow/(outflow) from/(on) investment activities (7 350) (16 477) Cash
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 USD'000 USD'000 Chang USD'000 USD'000 % of Group GP % GP % Group Group Change Group e Beef 21 970 28 362 -22.54% 19.38% 21.81% 7 866 10 091 -22.0
Slide 10: Divisional Review
Divisional Review Cold Chain Food Products Farming West Africa BEEF CROPPING NIGERIA 22.05% 38.47% 2.67% GP: USD 7.9m GP: USD 1.9m GP: USD 9.3m • 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 maize
Slide 11: 11
11
Slide 12: Divisional 2016 & 2015 Gross Profit (USD'000)
Divisional 2016 & 2015 Gross Profit (USD’000) GROSS PROFIT (USD’000) Cold Chain Food Products 2016: 16 936 2015: 21 335 2016 2015 15,132 16,000 14,000 12,000 10,091 9,310 9,238 10,000 7,866 8,000 6,000 3,957 3,855 3,338 3,185 2,758 4,000 2,225 2,040 1,968 1,915 1,761 1,009 994 2,000 916 910 873 813
Slide 13: Segmental Summary
Segmental Summary % OF GROUP Cold Chain Food Products GROSS PROFIT 2016: 41.12% 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% 4.27% 2.45% 2.23% 2.05% 2.04% 1.97% 1.96% 1.34% 5.00% 1.00%
Slide 14: > P ~ . f | rey Be Ae dS we an .
7 > P ~ . f | 5 rey Be Ae 4 dS we an .
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 91in Zambia, 6 in Nigeria opened during 2016 – 3 in Zambia, 4 in Nigeria Milk Pork 6 MACRO STORES NEW PROCESSING AND & 2 WHOLESALES DISTRIBUTION
Slide 16: . the
. the ss? %, on x) 3 o o “| ZAMBEEF Products PLC
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