Guinness Nigeria Plc · NSENG:GUINNESS
Guinness Nigeria — FY2019 Earnings Presentation
21 slides from Guinness Nigeria's earnings presentation, Aug 29, 2019
Slide 1: Guinness Nigeria F19 Full year Results
Guinness Nigeria F19 Full year Results August 29th, 2019
Slide 2: F19 Full Year Results Briefing
F19 FULL YEAR RESULTS BRIEFING Commercial Performance & Financial Questions & Answers Winning Portfolio Performance Review Ayodele Alabi, Baker Magunda, MD/CEO Stanley Njoroge, Finance and Corporate Communications Strategy Director Manager 2 2 Highly Confidential
Slide 3: Our Ambition
Our Ambition To be the best performing, most trusted and respected Consumer Products Company in Nigeria OUR VALUES OUR MUST DOs Winning with a total beverage portfolio Strengthen and accelerate our premium core brands Win in value and mainstream Innovate at scale to meet new customer need Build and
Slide 4: Our focus
Our focus……. MAIN EFFORT Grow Premium Core Faster Deliver Target -Reserve/IPS Transform Cost Absorption -Brand Guinness commercialization in Lager and -MSS of Innovation Dubic -MG Drive Productivity Harder Capable and engaged people Build an advanced TBA RTC 4 4 Highly Confidential
Slide 5: Modest Growth Tracking Behind Population Growth with High Inflation
Modest Growth Tracking Behind Population Growth with High Inflation Official FX Exchange Rate Population Growth rate (%) 500 2.72 2.7 2.7 2.7 2.68 2.66 NG/£/$ 400 2.64 2.62 2.6 2.6 2.6 2.6 300 2.58 July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June 2.56 2018 2018 2018 2018 2018 2018 2019 2019 2019 20
Slide 6: Beer Market Volume and Value Declined
Beer Market Volume and Value Declined 6 Highly Confidential
Slide 7: Volume Market share of Beer segments: Mainstream losing to Low Value
Volume Market share of Beer segments: Mainstream losing to Low Value 7 Highly Confidential
Slide 8: Bottle Format losing share to lower Margin Can and PET Formats
Bottle Format losing share to lower Margin Can and PET Formats in the Beer and Malt category BEER CATEGORY Bottle Format Can Format Share chg Growth Share chg Growth GNPlc is declining in Bottle, but gains are -0.1 -6.6% 0.2 -1.8% observed in Can format consistent with the -0.8 -11.7% 0.1 0.4% marke
Slide 9: Guinness Nigeria F20 Strategy
Guinness Nigeria F20 Strategy F20 TOGETHER WE WIN WITH TBA! To become the best performing, most trusted and respected consumer products company in Nigeria The Outcomes we will deliver: Grow value share; enhance margins from Beer Win with IPS Explode Mainstream Spirits Route to Consumer Occasions • J
Slide 10: First Nigerian company with a Total Beverage Alcohol Portfolio
First Nigerian company with a Total Beverage Alcohol Portfolio Brewed for consumers to experience great looking, great tasting beer every day and everywhere ➢ Guinness Foreign Extra Stout::Guinness Foreign Extra Stout is a uniquely satisfying beer brewed with extra hops and roasted barley ➢ Harp Pre
Slide 11: We played to the Full Strength of our TBA
We played to the Full Strength of our TBA INNOVATION : GUINNESS GOLD ,BAILEYS DELIGHT, RELEVANCE IN CULTURE GROW ICONIC STATURE OF GUINNESS WHITE WALKER 11 Highly Confidential
Slide 12: Community Impact
COMMUNITY IMPACT HEALTH - WATER OF LIFE SCHEME – Direct Beneficiaries in Communities HEALTH – GUINNESS EYE CENTRES – 230 Cataract Surgeries for with 3500 Women and young girls in the North RESPONSIBLE DRINKING – FRSC & MOTOR PARKS EMBER MONTH UNDERAGE RESPONSIBLE DRINKING PROGRAMME – “SMASHED” – CAM
Slide 13: Guinness Nigeria F19 Full Year Results
Guinness Nigeria F19 Full Year Results Commercial Questions & Answers Performance and Financial Ayodele Alabi, Winning Portfolio Performance Review Corporate Communications Baker Magunda, MD/CEO Stanley Njoroge, Finance Manager and Strategy Director 13 13 Highly Confidential
Slide 14: Brand/Category revenue growth
Brand/Category revenue growth Brand/Category % Growth FY Growth Overall, category Guinness 1% growth is -8%, Lager & RTD -47% driven by slow growth in Lager Apnads 3% and RTD MSS 4% IPS 2% Total -8% 14 14 Highly Confidential
Slide 15: Growth in Spirits and APNADs partially mitigated the decline in Beer and RTDS
Growth in Spirits and APNADs partially mitigated the decline in Beer and RTDS NET SALES Beer Apnads Spirits-(IPS+MSS) RTDs F18 FY Naira ‘b’ F19 FY Naira ‘b’ ➢ We have accelerated the contribution of Spirits to our total business. 15 15 Highly Confidential
Slide 16: Guinness Nigeria F19 Full Year Income Statement
Guinness Nigeria F19 Full Year Income Statement FY F19 Income Statement F18 F19 vs LY Productivity Benefits: N'm N'm Net Sales 142,976 131,498 -8% • Unit Cost of sales grew Operating Profit/(loss) 13,386 8,966 -33% but lower than inflation. • Distribution costs Net finance costs (3,443) (1,862) 46%
Slide 17: Earnings, Cash & Leverage
Earnings, Cash & Leverage ₦'Million F17 FY F18 FY F19 FY F19 vs LY Revenue 125,919 142,975 131,498 -8% EBITDA 19,180 22,625 19,059 -16% EBITDA margin 15% 16% 14% EBIT 10,186 13,386 8,966 -33% EBIT margin 8% 9% 7% Operating Cash 18,046 10,590 13,406 27% Free Cash Flow 10,477 -5,039 -2,421 52% Net Deb
Slide 18: Diageo F20 Outlook and Priorities
DIAGEO F20 OUTLOOK AND PRIORITIES
Slide 19: Our focus remains on delivering our TBA strategy
Our focus remains on delivering our TBA strategy We expect a continued challenging macroeconomic, regulatory and competitive environment… – GDP growth expected to lag population – Inflation expected to remain double digit – Regulatory risks exist especially around taxes – Potential forex risks espec
Slide 20: F19 Full Year Results Briefing
F19 Full Year Results Briefing Commercial Performance and Financial Questions & Answers Winning Portfolio Performance Review Ayodele Alabi, Baker Magunda, MD/CEO Stanley Njoroge Finance and Corporate Communications Strategy Director Manager 20 20 Highly Confidential
Slide 21: Highly Confidential
21 21 Highly Confidential