Zambeef Products Plc · LSE:ZAM
Zambeef Products — H1 2018 Earnings Presentation
26 slides from Zambeef Products's earnings presentation, Mar 31, 2018
Slide 1: Financial Results for the six months to 31 March 2018
ZAMBEEF PRODUCTS PLC Financial Results for the six months to 31 March 2018
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 Zambeef’s strategy is translating into improved results and the strategy will continue to be executed: ▪ Consistent revenue growth through expanding the retail network and driving the CCFP and stock feed operations; ▪ Margin improvements by investing capex in high margin parts of the bu
Slide 4: Overview
Overview Continued rollout of Gross Profit Margin & Disposal of non core Strong performance Zambeef Macro outlets Volume Growth assets & Shoprites from Retailing & CCFP H1 2018 Gross Profit margins Sold 90% of Zampalm to division and Macro Stores 23 Stockfeed division and volumes up in IDC for USD 1
Slide 5: Financial Overview
Financial Overview Revenue Gross Profit 5.6% H1/2018: ZMW 1.23bn 22.1% H1/2018: ZMW 461.2m (ZMW) (ZMW) H1/2017: ZMW 1.16bn H1/2017: ZMW 377.6m 4.6% H1/2018: USD 123.8m 21.0% H1/2018: USD 46.6m (USD) (USD) H1/2017: USD 118.4m H1/2017: USD 38.5m EBITDA Adjusted Profit Before Tax 25.6% H1/2018: ZMW 109
Slide 6: Divisional Overview (ZMW)
Divisional Overview (ZMW) Retail & CCFP Stockfeed Revenue Revenue H1/2018: ZMW 941m H1/2018: ZMW 307.6m 9.9% 5.3% H1/2017: ZMW 857m H1/2017: ZMW 324.7m EBITDA EBITDA 35.6% H1/2018: ZMW 98.7m 5.3% H1/2018: ZMW 44.9m H1/2017: ZMW 72.8m H1/2017: ZMW 42.7m Cropping Other (continuing) Gross Profit Revenu
Slide 7: Divisional Overview (USD)
Divisional Overview (USD) Retail & CCFP Stockfeed Revenue Revenue 8.9% H1/2018: USD 95.1m 6.1% H1/2018: USD 31.1m H1/2017: USD 87.3m H1/2017: USD 33.0m EBITDA EBITDA 34.4% H1/2018: USD 10.0m 4.3% H1/2018: USD 4.5m H1/2017: USD 7.4m H1/2017: USD 4.4m Cropping Other (continuing) Gross Profit Revenue H
Slide 8: Retailing Network
Retailing Network Actual Actual Actual Actual H1 2018 2017 2016 2015 Zambia Zambeef Outlets 75 81 87 91 Zambeef Macros 23 19 10 6 Novatek 22 17 10 5 Zamshu Outlets 17 12 2 0 137 129 109 102 Shoprites 32 31 31 26 Total Zambia 169 160 140 128 Nigeria Shoprite 24 23 20 14 Master Meats Outlets 6 6 6 6 ❑
Slide 9: Retailing Revenue Channel Analysis (ZMW'000)
Retailing Revenue Channel Analysis (ZMW’000) 10.5% 349,803 313,198 66.3% 2018 195,732 15.0% 2017 139,424 117,717 121,188 75.9% 8.5% 63,058 56,354 51,941 35,845 OUTLETS MACROS SHOPRITE NOVATEK OTHER 2018 Other, 2017 Other, Novatek, 7.3% Novatek, 7.7% 8.2% 5.3% Outlets, Outlets, 40.8% 51.7% Shoprite,
Slide 10: Retailing Revenue Channel Analysis (USD'000)
Retailing Revenue Channel Analysis (USD’000) 11.3% 35,658 31,636 64.8% 2018 19,771 14.0% 2017 14,083 12,000 12,353 74.3% 7.5% 6,369 5,692 5,295 3,654 OUTLETS MACROS SHOPRITE NOVATEK OTHER 2018 2017 Other, Novatek, Other, 7.3% Novatek, 7.7% 8.2% 5.3% Outlets, Outlets, Shoprite, 40.8% Shoprite, 51.7%
Slide 11: Cold Chain Food Products
Cold Chain Food Products ❑ Strong volume growth: • Total CCFP 6.7% • Beef 10.6% • Chicken 14.3% • Pork (3.8%) • Dairy 9.3% • Fish (4.7%) • Egg 1.0% ❑ 2018 H1 Challenges experienced in CCFP: • An outbreak of Cholera in January 2018 affected the sale of Beef heads, bones and offal fat in the Tradition
Slide 12: Retail & Cold Chain Food Products P&L
Retail & Cold Chain Food Products P&L H1 2018 H1 2017 H1 2018 H1 2017 % Change % Change ZMW'000 ZMW'000 USD'000 USD'000 Revenue Retail 840 379 818 953 84 887 83 482 CCFP 665 243 653 811 67 196 66 647 Less: Intra / Inter (564 309) (615 981) (57 001) (62 791) Revenue 941 313 856 793 9.9% 95 082 87 339
Slide 13: Stockfeed P&L
Stockfeed P&L H1 2018 H1 2017 H1 2018 H1 2017 ZMW'000 ZMW'000 % Change USD'000 USD'000 % Change Revenue 307 598 324 701 -5.3% 31 071 33 099 -6.1% Gross Profit 82 809 62 830 31.8% 8 365 6 405 30.6% Overheads (37 867) (20 141) 88.0% (3 825) (2 053) 86.3% EBITDA 44 942 42 689 5.3% 4 540 4 352 4.3% Volu
Slide 14: Cropping P&L
Cropping P&L H1 2018 H1 2017 % H1 2018 H1 2017 % ZMW'000 ZMW'000 Change USD'000 USD'000 Change Revenue 110 356 201 901 -45.3% 11 147 20 581 -45.8% Gross Profit 78 791 79 745 -1.2% 7 959 8 129 -2.1% Overheads (54 920) (60 309) -8.9% (5 547) (6 148) -9.8% EBITDA 23 871 19 436 22.8% 2 411 1 981 21.7% ❑
Slide 15: Other Divisions P&L
Other Divisions P&L H1 2018 H1 2017 % H1 2018 H1 2017 % ZMW'000 ZMW'000 Change USD'000 USD'000 Change Revenue 65 916 72 933 -9.6% 6 658 7 435 -10.4% Gross Profit 14 447 14 019 3.1% 1 459 1 429 2.1% Overheads (8 487) (11 062) 23.3% (857) (1 128) 24.0% EBITDA 5 960 2 957 101.6% 602 301 100.0% ❑ Zamlea
Slide 16: Abridged Balance Sheet
Abridged Balance Sheet 31-Mar-18 31-Mar-17 30-Sep-17 31-Mar-18 31-Mar-17 30-Sep-17 ZMW'000 ZMW'000 ZMW'000 USD'000 USD'000 USD'000 Non Current Assets 2 824 657 2 197 573 3 041 745 297 959 227 493 314 555 Current Assets 1 199 915 882 048 787 956 126 573 91 309 81 485 TOTAL ASSETS 4 024 572 3 079 621
Slide 17: Abridged Cash Flow Statement
Abridged Cash Flow Statement 31-Mar-18 31-Mar-17 31-Mar-18 31-Mar-17 ZMW'000 ZMW'000 USD'000 USD'000 Profit before taxation 27 293 5 780 2 758 590 EBITDA 109 671 87 284 11 112 8 898 Net cash inflow from operating activities (75 249) (28 261) (9 813) (2 879) Movement in Working Capital (184 920) (115
Slide 18: Capex
Capex Main Capital Expenditure during H1: ❑ USD 2.9m on rollout of new Zambeef Macro outlets; ❑ USD 1.1m on new Mpongwe stock feed plant; ❑ USD 1.1m on expansion of Zamhatch hatchery and breeder farm; ❑ USD 0.9m for expansion of Zam Chick processing plant; ❑ USD 0.5m on new Kitwe Processing plant; ❑
Slide 19: Capex
Capex Key projects to be completed within the next six months: ❑ Continue to grow retail network and drive retail sales to help grow CCFP and stock feed operations (Four Zambeef Macros and three Shoprite stores to open before end of H2/2018); ❑ Commission new Copperbelt distribution hub which will i
Slide 20: Summary and Outlook
Summary and Outlook ❑ Strengthening macro backdrop o Zambia’s GDP is forecast to grow by 5.5% in 2018 o Stabilising currency o Stable outlook for commodity prices ❑ Four Macro outlets opened in H1 with a further four expected to open during H2 o Aim to open 10 new Macro outlets each year ❑ Continue
Slide 21: Questions?
Questions?
Slide 22: Appendices
Appendices r
Slide 23: Appendix 1: Abridged Income Statement
Appendix 1: Abridged Income Statement 31-Mar-18 31-Mar-17 % Change 31-Mar-18 31-Mar-17 % Change ZMW'000 ZMW'000 (ZMW) USD'000 USD'000 (USD) Revenue 1 226 083 1 161 318 5.58% 123 847 118 381 4.62% Cost of Sales (764 931) (783 694) 2.39% (77 266) (79 887) 3.28% Gross Profit 461 152 377 624 22.12% 46 5
Slide 24: Appendix 2: Segmental Revenue, GP & EBITDA (ZMW'000)
Appendix 2: Segmental Revenue, GP & EBITDA (ZMW’000) Revenue Revenue Gross Profit Gross Profit Overheads Overheads EBITDA 2018 EBITDA 2017 Division 2018 2017 2018 2017 2018 2017 ZMW'000 ZMW'000 ZMW'000 ZMW'000 ZMW'000 ZMW'000 ZMW'000 ZMW'000 Retailing 840 379 818 963 105 612 78 191 (109 675) (88 828
Slide 25: Appendix 3: Segmental Revenue, GP & EBITDA (USD'000)
Appendix 3: Segmental Revenue, GP & EBITDA (USD’000) Revenue Revenue Gross Profit Gross Profit Overheads Overheads EBITDA 2018 EBITDA 2017 Division 2018 2017 2018 2017 2018 2017 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Retailing 84 887 83 482 10 668 7 971 (11 078) (9 055) ( 41
Slide 26: Appendix 4: Segmental Distribution of Gross Profit
Appendix 4: Segmental Distribution of Gross Profit 2018 2017 Others, 1.8% Others, 3.4% Crop-Row Crops, 17.3% Crop-Row Crops, 21.1% Retail & CCFP, 58.8% Retail & CCFP, 62.7% Stock Feed, 18.2% Stock Feed, 16.6% % of Group Gross Profit