Guinness Nigeria Plc · NSENG:GUINNESS
Guinness Nigeria — H1 FY2020 Earnings Presentation
21 slides from Guinness Nigeria's earnings presentation, Jan 31, 2020
Slide 1: Guinness Nigeria F20 Half Year Results
Guinness Nigeria F20 Half Year Results January 31st, 2020
Slide 2: F20 Half Year Results Briefing
F20 HALF 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 *Highly Highly Confidential Confidential *
Slide 3: Our Ambition
Our Ambition To create the best performing, most trusted and respected consumer products company in Nigeria OUR VALUES OUR MUST DOs Sustain Quality Growth Embed Everyday Efficiency Invest Smartly Promote Positive Drinking Champion Inclusion and Diversity Pioneer Grain-to-Glass Sustainability 3 *High
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 *Highly Highly Confidential Confidentia
Slide 5: Modest GDP Growth with persistent Inflation rise
Modest GDP Growth with persistent Inflation rise Source: National Bureau of Statistics, FDC *Highly Highly Confidential Confidential * 5
Slide 6: Beer
Lager sub-category gained volume share (+0.3pt) and Stout gained vol share (+0.2pt), all picked from RTD (-0.5) in C3M BEER Volume % Share Segments Growth Value % Share Vol./Val C3M vs. PP 7.4 7.0 9.6 9.1 RTD -10.5 RTD RTD -9.2 -4.3 STOUT -4.6 71.8 72.0 75.8 76.1 Lager -5.0 LAGER Lager -4.9 -5.4 BEE
Slide 7: Beer
All price segments declined in volume and value sales for C3M vs PP. However, Premium segment witnessed volume & value share gains as their decline was slower. BEER Volume % Share Price Segments Share Value % Share 3.8 3.6 Chg C3M vs PP 3.0 2.8 -11.4 ACCESSIBLE -11.0 55.3 55.5 49.1 49.0 LOWER -5.1 M
Slide 8: Malt
Premium price segment gained volume share (0.3pts) and value share (0.5pts) while VFM remained flat; with Premium declining the least. MALT Volume % Share Price Segments Share Value % Share Chg C3M vs PP 24.0 24.0 -5.0 22.9 22.8 VFM 3.4 -5.7 3.4 3.7 3.7 -13.9 MAINSTREAM -13.6 72.3 72.6 73.4 73.9 -4.
Slide 9: Opportunities abound for spirits as alcohol penetration will continue to grow
OPPORTUNITIES ABOUND FOR SPIRITS AS ALCOHOL PENETRATION WILL CONTINUE TO GROW, PARTICULARLY AMONG WOMEN AND LPA -24 CONSUMERS Alcohol incidence has grown by 10percentage points from 2011, to 2017 driven by both Beer and Spirits Nigeria still has a low alcohol penetration compared to other African be
Slide 10: First Nigerian company with a Total Beverage Alcohol Portfolio
First Nigerian company with a Total Beverage Alcohol Portfolio Beer Brewed for consumers to experience great looking, great tasting beer every day and everywhere Our wide array of spirits are Spirits versatile with a bold characteristic taste Our premium Ready-to-Drink (RTD) beverages Ready – are pr
Slide 11: We played to the Full Strength of our TBA
We played to the Full Strength of our TBA INNOVATION : GUINNESS SMOOTH ,GREEN RELEVANCE IN CULTURE GROW ICONIC STATURE OF GUINNESS LABEL,SINGLETON,BLACK & WHITE and POCKET SCOTCH *Highly Highly Confidential Confidential *
Slide 12: Adding value to our Communities & Stakeholders
DIAGEO IN SOCIETY Adding value to our Communities & Stakeholders Our contributions to the communities where we source , make and sell is a critical part of our journey to been the most truly respected consumer products company in the world. We live out this purpose everyday not only through our wide
Slide 13: Brand/Category revenue growth
Brand/Category revenue growth HY Growth Overall, category Category vs. LY growth is +1%, driven Guinness ▲ by strong double-digit growth in Brand RTD ▲ Guinness and Mainstream spirits. Lager ▼ * Apnads lower than *Apnads ▼ last year due to Cameroun exports. MSS ▲ IPS ▼ GN Total ▲*Highly Highly Confi
Slide 14: F20 Half Year Results briefing
F20 Half Year Results briefing 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 14 *Highly Highly Confidential Confidential *
Slide 15: HY Income Statement Key Highlights
HY Income Statement Key Highlights: Q1 Q2 vs LY • The 2nd quarter performance was N'm N'm significantly better than the declines we saw in Q1 Net Sales 26,899 41,428 54% • Excise duty increases with limited pricing opportunities has Operating Profit/(loss) 682 2,878 322% impacted revenue and margins
Slide 16: Working Capital, Earnings Ratio, & Leverage
Working Capital, Earnings Ratio, & Leverage ₦'Million F18 HY F19 HY F20 HY F20 vs LY Revenue 70,557 67,796 68,327 1% EBITDA 11,132 9,654 8,924 -8% EBITDA margin 16% 14% 13% EBIT 6,648 4,638 3,560 -23% EBIT margin 9% 7% 5% Operating Cash 1,045 11,835 15,779 33% Free Cash Flow -679 6,445 10,655 65% CR
Slide 17: * Highly Highly Confidential Confidential *
17 *Highly Highly Confidential Confidential *
Slide 18: Looking to H2 and beyond
Looking to H2 and beyond… We expect a continued challenging macroeconomic, regulatory and competitive environment… – GDP growth expected to still lag population – Regulatory risks exist especially around taxes – Potential forex risks especially relating to government rate – Inflation likely to remai
Slide 19: F20 Half Year Results Briefing
F20 Half 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 19 *Highly Highly Confidential Confidential *
Slide 20: * Highly Highly Confidential Confidential *
20 *Highly Highly Confidential Confidential *
Slide 21: This presentation is based on Guinness Nigeria Plc's audited financial results for half year
• This presentation is based on Guinness Nigeria Plc’s audited financial results for half year period ended 31st December, 2019. Guinness Nigeria Plc (“GN” or the “Company”) has obtained some information in this presentation from sources it believes to be reliable. Although GN has taken all reasonab