Blu Label Unlimited Group Ltd · JSE:BLU
Blu Label Unlimited — FY2019 Earnings Presentation
18 slides from Blu Label Unlimited's earnings presentation, May 31, 2019
Slide 1: Audited Results for the year ended 31 May 2019
AUDITED RESULTS For the year ended 31 May 2019
Slide 2: Introduction
Introduction } What happened? • Underperformance has led to write offs and trading losses decreasing headline earnings by R3.97 billion } Where to now? • Conclude Cell C transactions – progressing well • Back to basics at Blue Label • Sale of identified assets; not affecting core trading • Increased
Slide 3: Financial Highlights
Financial Highlights for the year ending 31 May 2019 } Gross revenue increased 10% to R57.8 billion Gross revenue (R'million) 70 000 } Gross profit increased from R2.3bn to R2.6bn 60 000 50 000 } Gross profit margin expanded to 10.23% 40 000 30 000 } Impairments contributed to net profit decreasing
Slide 4: SA & Africa Distribution
SA & Africa Distribution } Revenue declined by 3% to R25.4 billion } GP increase 17% to R2.4 billion } GP margin improved from 7.67% to 9.28% } Wholesale market is declining as buying patterns change } TPC focused on efficiencies, GP margin accretion & assisting BLD grow informal channels } BLD focu
Slide 5: SA Distribution - product performance
SA Distribution - product performance } Extremely strong growth from online top ups and electricity } Decline in wholesale market due to changing buying patterns } Blue Label is actively managing GP margin in wholesale and is SA Distribution Product Performance 20 000 000 prepared to forego revenue
Slide 6: Blue Label Distribution - channel performance
Blue Label Distribution - channel performance } Our reach into the SA market continues to grow as we expand into new segments and take market share } Our expanding portfolio of products is a real differentiator Channel Performance 25 000 000 } Making headway into independent and informal markets 20
Slide 7: Informal market growth
Informal market growth } Deliver products and services to under-serviced areas in a consistent and affordable manner } Grown outlets by 17 000 in FY2019 in focused market expansion drive } Active trading metric = 60% } Target 100 000 over the medium term } Positioned for sustainable long term growth
Slide 8: 3G Mobile & CEC
3G Mobile & CEC } Since joining Blue Label, 3G has grown strongly } 3G handsets are network agnostic leading to approx. 75% reduction in cost of capital for retailers } In Africa, 3G competes directly with OEMs } CEC has grown its financing book to R2.8 billion } Blue Label selling handset division
Slide 9: Cigicell
Cigicell } Electricity revenue increase 19% from R16.87 billion to R20.02 billion } Cigicell is able to offer municipalities a revenue assurance ecosystem – Blue Label improves collection of all revenue for municipalities } Efficient treasury function augmented by CEC skills } Growth to continue Ele
Slide 10: Blue Label Data Solutions
Blue Label Data Solutions } Market leader in consumer data, big data, validation, verification, cleansing of data and lead generation } Launched a new JV with United Call Centre Solutions – an outbound call centre specializing in direct selling to consumers } Looking to grow value-added and regulate
Slide 11: Back to basics
Back to basics } It has been a challenging two years } We are going back to basics } Focus on extending reach and product set in core distribution business } Blue Label’s DNA is trading and distribution – focus on doing what we do best } Grow revenue assurance business } Signed binding agreements to
Slide 12: Financial Results
FINANCIAL RESULTS Dean Suntup
Slide 13: Highlights
Highlights Increase in core Increase in Increase in gross headline revenue by 10% profit margins earnings by 26% to R57.8 billion* from 8.54% to 10.23% to R904 million*** Increase in core Increase in gross Increase in headline profit by 16% to EBITDA by 24% earnings per R2.65 billion to R1.65 billio
Slide 14: Income Statement
Income Statement for the year ended 31 May 2019 Fair value Impair- Remaining Fair value Remaining Growth Growth Group Cell C adj OSI ments entities Group Cell C adj OSI entities remaining remaining May 2019 May 2019 May 2019 May 2019 May 2019 May 2019 May 2018 May 2018 May 2018 May 2018 May 2018 ent
Slide 15: Revenue
Revenue May 2019 May 2018 Growth Growth R'000 R'000 R'000 % Prepaid airtime, data and related revenue 32 356 223 31 720 186 636 036 2% - Prepaid airtime and data 20 789 313 22 968 967 (2 179 654) (9%) - "PINless" airtime top-ups* 11 566 910 8 751 219 2 815 690 32% Postpaid airtime, data and related
Slide 16: Balance Sheet
Balance Sheet as at 31 May 2019 Group Group May 2019 May 2018 R'000 R'000 Non- current assets 3 477 070 9 412 758 Property, plant and equipment 237 657 137 120 Intangible assets and goodwill 2 318 323 2 113 114 • Decrease in investments in and loans to associates Investment in associates and joint v
Slide 17: Cash Flow
Cash Flow for the year ended 31 May 2019 Group Group May 2019 May 2018 R'000 R'000 Cash generated by operations 431 287 3 588 779 • Negative cash from operations attributable to bulk Interest received 88 416 154 952 purchasing of inventory at favourable discounts Interest paid (231 131) (187 489) Ta
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