Zambeef Products Plc · LSE:ZAM
Zambeef Products — H1 2021 Earnings Presentation
19 slides from Zambeef Products's earnings presentation, March 2021
Slide 1: Financial Results for the Half-year ended 31 March 2021
Financial Results For the Half-year ended 31 March 2021 Zambeef at a Glance 2 Retail Channel Analysis 10 Highlights 3-5 Segmented P&L 11-14 Divisional Analysis 6-7 Balance Sheet 15-16 Headline & Profit Analysis 8 Cashflow 17 Income Statement 9 Outlook & COVID Response 18-19
Slide 2: Zambeef at a glance
Zambeef at a glance Zambeef Brands A farm to fork vertically integrated business Cropping One of the largest row cropping operations in Zambia; Double cropping of irrigated land means Zambeef Network Zambeef plants 22,737 ha p.a. Stockfeed The leading stockfeed producer in Zambia, operating two feed
Slide 3: Operating Environment
Operating Environment ECONOMY INPUTS PRODUCTS ZMW / USD Maize ($) Beef (All) HY-21: 158 /ton 57% HY-21: K41.5 /Kg 46% HY-21: 21.17 51% HY-20: 323 /ton HY-20: K26.5 /Kg HY-20: 14.53 Inflation Rainfall Huntley Chicken IQF 62% 118% HY-21: 74 avg 28% HY-21: K33.9 /Kg HY-21:19.9% HY-20: 34 avg HY-20: K26
Slide 4: Macro-Economic Highlights
Macro-Economic Highlights Steep Inflationary Curve, Steady Depreciation and Constrained Liquidity USD Mid-Rate Depreciation of the Kwacha (in ZMW) • The Zambian Kwacha depreciated by 10.3% during Half-year 2021 driven by constrained USD supply. • Pace of depreciation slowed down owing to BOZ interve
Slide 5: Financial Highlights
Financial Highlights Operating Profit Growth Driven by Management efficiencies ZMW ‘000 USD ‘000 +21% -20% Revenue 128,485 • Combined Retail & CCFP and Stockfeed revenue on prior year were principle 2,167,715 drivers for the observed 21% revenue increase. Combined, they contributed to 103,323 1,787,
Slide 6: Group Profit Analysis (ZMW'000)
Group Profit Analysis (ZMW’000) Others Others 29,447 Retail & 25,067 Retail & 4% CCFP 4% CCFP 374,214 Gross Profit Cropping 51% Cropping 161,886 316,798 51% YoY Growth 191,473 26% 26% Retail & CCFP 18.1% Stockfeed 17.9% 2021 2020 Cropping 18.3% 739,424 626,129 Others 17.5% Total 18.1% Stockfeed Stoc
Slide 7: Group Profit Analysis (USD'000)
Group Profit Analysis (USD’000) Others Others 1,404 1,802 Retail & Retail & 4% 4% CCFP CCFP Gross Profit Cropping 17,837 Cropping 22,775 51% YoY Growth 51% 11,638 9,126 Retail & CCFP -21.7% 26% 26% 2021 2020 Stockfeed -21.8% Cropping -21.6% 35,244 45,013 Others -22.1% Total -21.7% Stockfeed Stockfee
Slide 8: Headline Earnings Waterfall (ZMW'000)
Headline Earnings Waterfall (ZMW’000) 259,888 (84,275) 2021 (21,758) (42,558) (92,322) (21,846) 20,843 53,934 EBITDA Depreciation and Other Adjustments Net Unrealised Finance Costs Taxation Charge Profit from Total profit for the Amortisation Exchange losses discontinued Period operations (66,589) 1
Slide 9: Financial Overview – P&L
Financial Overview – P&L HY-21 HY-20 HY-21 HY-20 ZMW’000 ZMW’000 %∆ USD’000 USD’000 %∆ Revenue 2,167,715 1,787,225 21.3% 103,323 128,485 -19.6% Cost of Sales (1,428,291) (1,161,096) 23.0% (68,079) (83,472) -18.4% Gross profit 739,424 626,129 18.1% 35,244 45,013 -21.7% Overheads (493,925) (428,435) 1
Slide 10: Retailing Revenue Channel Analysis-Zambia
Retailing Revenue Channel Analysis-Zambia HY-2021 HY-2020 3% +19% +28% +5.5% 268,626 267,194 259,660 237,543 235,071 +22% 226,466 225,243 194,014 +43% 184,215 159,520 155,709 109,094 Zambeef Outlets Zambeef Macros Novatek Shoprite Master Meats West Other Africa HY-2021 HY-2020 Other Zambeef Other 18
Slide 11: Retail & Cold Chain Food Products P&L
Retail & Cold Chain Food Products P&L HY-21 HY-20 HY-21 HY-20 ZMW'000 ZMW'000 USD'000 USD'000 Highlights Revenue 1,501,347 1,163,355 29.1% 71,560 83,635 -14.4% ❑ The strong performance in the CCFP Gross Profit 374,214 316,798 18.1% 17,836 22,775 -21.7% division was underpinned by Overheads (300,097)
Slide 12: Stockfeed P&L
Stockfeed P&L HY-21 HY-20 HY-21 HY-20 ZMW'000 ZMW'000 USD'000 USD'000 Highlights Revenue 748,062 641,656 16.6% 35,656 46,129 -22.7% ❑ Fish feed continues to register Gross Profit 144,290 122,378 17.9% 6,877 8,798 -21.8% exponential growth following the Overheads (76,981) (60,753) 26.7% (3,669) (4,36
Slide 13: Cropping P&L
Cropping P&L HY-21 HY-20 HY-21 HY-20 ZMW'000 ZMW'000 USD'000 USD'000 Highlights Revenue 163,313 256,990 -36.5% 7,784 18,475 -57.9% ❑ Exceptional financial performance Gross Profit 191,473 161,886 18.3% 9,127 11,638 -21.6% achieved at the Chiawa farm Overheads (102,673) (85,151) 20.6% (4,894) (6,122)
Slide 14: Other divisions P&L
Other divisions P&L HY-21 HY-20 HY-21 HY-20 ZMW'000 ZMW'000 USD'000 USD'000 Highlights Revenue 145,964 109,476 33.3% 6,957 7,870 -11.6% ❑ The leather to shoe business Gross Profit 29,447 25,067 17.5% 1,404 1,802 -22.1% turnaround strategy is beginning Overheads (14,174) (11,634) 21.8% (675) (836) -1
Slide 15: Abridged Balance Sheet
Abridged Balance Sheet HY 21 HY 20 HY 19 HY 21 HY 20 HY 19 ZMW'000s ZMW'000s ZMW'000s USD '000s USD '000s USD '000s Non – current assets 3,638,327 3,550,005 3,123,611 164,779 196,567 256,243 Current assets 2,030,247 1,479,447 1,092,947 91,950 85,357 89,659 Total assets 5,668,574 5,091,565 4,216,558
Slide 16: Group Debt Analysis
Group Debt Analysis +2.2% -16.4% FY 2021 YTD Loan Repayments 1,086,773 1,063,892 58,909 ZMW $86,752,427 USD $4,135,006.09 49,219 ZMW:USD Average FX rate Closing rate HY 2020 13.91 18.06 FY 2020 16.17 20.14 HY 21 HY 20 HY 21 HY 20 HY 2021 20.98 22.08 Debt Profile Source Breakdown Long Term Leases 12%
Slide 17: Abridged Cashflow Statement
Abridged Cashflow Statement HY-21 HY 20 HY-21 HY 20 ZMW'000s ZMW'000s USD '000s USD '000s Profit/(Loss) before taxation 54,937 12,490 2,618 898 EBITDA, Fair value adjustments and Forex 193,398 160,951 9,217 11,566 Net cash (outflow)/inflow from/on operating activities (227,309) (117,867) (10,834) (8
Slide 18: Operating Environment | Outlook
Operating Environment | Outlook Indicators 2018 2019 2020 2021 2022 2023 2024 GDP Growth % 3.7 2.0 -4.2 1.5% 1.5 1.9 2.1 MPC % 9.75 11..5 8 8.5 8.5 9 10 Inflation % 7.9 10.8 15.7 20.6 16.5 15 10.4 ZMW per $ 10.45 15 20.0 24.3 20 20 19.5 • The Global economy is expected to contract by 4.9% on Threats
Slide 19: Ensuring business Continuity during COVID-19
Ensuring business Continuity during COVID-19 Zambeef remains committed, together with the rest of the nation, to ensuring that we beat COVID-19 Donations • Hygiene stations, bulk hand sanitizers, thermometers and masks to Chisamba, Chibombo and Lusaka City Councils. • Over K50,000 worth of cleaning