Avi Limited Class Y · JSE:AVI
Avi Limited Class Y — FY2009 Earnings Presentation
21 slides from Avi Limited Class Y's earnings presentation, 2009
Slide 1: AVI Limited Presentation to Analysts
AVI Limited Presentation to Analysts for the year ended 30 June 2009 Agenda Key K features f Group financial results Operating environment Initiatives and prospects Q&A AVI - Results for the year ended 30 June 2009 1
Slide 2: Key Features
Key Features Solid performance in a challenging environment Revenue from continuing operations up 12% to R7,5 billion Operating profit from continuing operations up 14% to R908 million Gross profit margin down from 41,3% to 39,9% due to input cost pressures Headline earnings per share from c
Slide 3: Group Financial Results
Group Financial Results Continuing Operations 09 08 Income statement Rm Rm %Δ R Revenue 7 462 462,4 4 6 660 660,6 6 12 0 12,0 Gross profit % 39,9 41,3 (3,4) Operating profit 908,5 798,7 13,7 Operating margin % 12,2 12,0 1,6 Net financing cost (125,0) (64,0) (95,3) Share of JVs and associates 15 3 15
Slide 4: Revenue and Gross Profit
Group Financial Results Continuing Operations – Revenue 12% up Group Financial Results Continuing Operations – Gross Profit 8% up AVI - Results for the year ended 30 June 2009 4
Slide 5: Operating Profit and Taxation
Group Financial Results Continuing Operations – Operating Profit 14% up Group Financial Results Continuing Operations – Taxation 09 08 Rm Rm Normal tax 250 3 250,3 233 7 233,7 Tax on capital items (0,8) 1,9 STC 27,2 30,2 Tax charge 276,7 265,8 Effective rate excl. capital items and STC 31,3% 31,1% N
Slide 6: Capital Items and Cash Flow
Group Financial Results Continuing Operations – Capital Items 09 08 Rm Rm Disposal of non‐core subsidiary ‐ NBL 23,8 ‐ Disposal of overseas property – I&J 26,7 ‐ Disposal of surplus vessels – I&J ‐ 21,9 Impairment of juice trademarks – RBC (15,6) ‐ Other capital items (17,8) (8,2) Total capital item
Slide 7: Discontinued Operation - Alpesca
Group Financial Results Discontinued Operation ‐ Alpesca Disposal frustrated by global liquidity crisis Separate disposal of shrimp assets – impairment of $3,9m Impending improvements to quota will enhance value if enacted Operating profit of R4,6m compared to loss of R10,2m in prior period
Slide 8: Operating Environment: Consumer Demand and Cost Pressures
Operating Environment Consumer Demand Tea volumes impacted by sale of non‐core subsidiary and strong competitor activity in H2 Biscuit demand impacted by slowing consumer spending Snacks volumes boosted by strong %Δ promotional activity and competitor Sales volume growth supply problems vs F08
Slide 9: Operating Environment: Selling Prices and Spitz
Operating Environment Selling Prices Change in average realised selling prices Average realised selling prices by % Δ vs F08 category Tea (raw material, Rand) 21,0 Biscuits (raw material, Rand) 21,1 Snacks (raw material, Rand) 16,9 Creamer (raw material, Rand) 14,5 Coffee (raw material, Rand) 34,6
Slide 10: Market Shares and Marketing Expenditure
Operating Environment Market Shares Average value share for 12 month periods Operating Environment Marketing Expenditure Includes advertising and promotions, co‐operative expenditure with customers and marketing department costs Total expenditure for F09 was R552m compared to R501m F08 AVI - R
Slide 11: Initiatives and Prospects
Initiatives and Prospects p Initiatives and Prospects AVI - Results for the year ended 30 June 2009 11
Slide 12: Entyce
Initiatives and Prospects Entyce F2009 ‐ material focus on key brands during the year • Product performance vs. competitors • Packaging upgrades • New pack sizes / formats for current market conditions • Cost effective marketing and promotion F2010 – stick to basics • Coffee and black tea prices
Slide 13: Snackworks
Initiatives and Prospects Snackworks F2009 ‐ focus on basic brand health • Improved market share despite lower category demand • Range extensions, new packaging, pack sizes • Supported by marketing investment in Bakers and Willards • Material improvement in service levels and product quality • Sel
Slide 14: Chilled & Frozen Convenience Brands
Initiatives and Prospects Chilled & Frozen Convenience Brands F2009 • I&J solid financial performance underpinned by high selling prices and currency • RSA quota reduced by 9% CY09 • Ongoing restructuring − Overseas sales relocated to RSA at lower cost − Closure of Mossel Bay processing • Mixed op
Slide 15: Out of Home
Out of Home Initiatives and Prospects Initiatives and Prospects Out of Home F2009 • Sound performance in tough trading environment p • Successful drive to increase and improve coffee vendingg business • Established stable profit base in out of home juice business F2010 • Large Food Service custo
Slide 16: Fashion Brands - Personal Care
Fashion Brands Initiatives and Prospects Initiatives and Prospects Fashion Brands ‐ Personal Care F2009 – strong performance • Driven by new product development – Yardley, Coty, Lenthéric • Increasing focus on Personal Care and grocery channels • Extended Coty license agreement for 2 years • Manuf
Slide 17: Fashion Brands - Footwear & Apparel
Initiatives and Prospects Fashion Brands ‐ Footwear & Apparel F2009 • Credible performance in a tough environment • Successful extension of core Italian Carvela range • Consolidated store base • SAP implemented with usual initial disruption • Nina Roche / Gant / Jimmy Choo losses – growth phase an
Slide 18: Exports into Africa and Hedges
Initiatives and Prospects Exports into Africa – Entyce and Snackworks 09 08 Rm Rm %Δ Revenue 392,9 315,5 24,6 Operating profit 58,3 55,8 4,5 Operating margin % 14,8 17,7 (16,0) Key contributors are Tea and Biscuits into sub‐Saharan Africa Measured growth in line with expansion of RSA retailers i
Slide 19: AVI Group Prospects
Initiatives and Prospects AVI Group Demand key to performance • Brands’ health and product innovation pipeline sound • Christmas trading important Potential for recovery of gross margins at current exchange rates • Foreign prices of most raw materials still reasonably high • Flexibility to stimu
Slide 20: Thank You
Thank You www.avi.co.za Business Unit Information AVI - Results for the year ended 30 June 2009 20
Slide 21: Business Unit Financial Results
Business Unit Financial Results Segmental Segmental Revenue Operating Margin Operating Profit F09 F08 Δ F09 F08 Δ F09 F08 Rm Rm % Rm Rm % % % Food & Beverage Brands 6 052,1 5 392,8 12,2 724,8 612,5 18,3 12,0 11,3 Entyce 1 670,5 1 547,5 7,9 223,4 189,1 18,1 13,4 12,2 Snackworks 2 015,6 1 677,2 20,2 1