Zambeef Products Plc · LSE:ZAM
Zambeef Products — H1 FY2013 Earnings Presentation
27 slides from Zambeef Products's earnings presentation, March 2013
Slide 1: Presentation of Interim Results
PRESENTATION OF INTERIM RESULTS for the six months to 31 March 2013
Slide 2: Zamanita SEP
Zamanita SEP y, IN
Slide 3: 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 4: Contents
CONTENTS Stock Feed Financial Highlights Divisional Review H1 FY 2013 Performance Summary/Outlook
Slide 5: Financial Highlights
Financial Highlights
Slide 6: H1 Highlights
H1 Highlights REVENUE GROSS PROFIT* EBITDA ADJUSTED PRE- TAX PROFIT 20% 24% 8% 7% 2013: USD 153m 2013: USD 56m 2013: USD 17m 2013: USD 8m+ 2012: USD 128m 2012: USD 45m* 2012: USD 15m* 2012: USD 9m*+ • Strong profit growth in key divisions; Cropping (up 76%), Edible Oils (up 70%), Stock Feed (up 36%)
Slide 7: Segmental Summary
Segmental Summary Turnover Gross Profit Bakery & Flour West Africa Fish, Zamchick West Africa 3% Bakery Inn & Leather 3% & Flour 4% 3% 4% Edible Oils Beef Beef 16% 20% 20% Fish, Zamchick Inn Edible Oils & Leather 23% 4% Milk & Dairy Chicken & Egg 6% 7% Chicken & Egg 9% Milk & Dairy Stock Feed Pork 3
Slide 8: Divisional Review
) 4} 7 q m Products PLC
Slide 9: Edible Oils
Edible Oils Contributes 23% of revenue and 16% of gross profitability Revenue is up 36% and gross profit is up 70% Expansion and upgrade of crushing and SE plant completed in September 2012 Crushing capacity of up to 100,000 p.a. with 85% average utilisation Sourced c.80,000 MT soya beans
Slide 10: Beef
Beef Contributes 20% of revenue and 20% of gross profitability Revenue is up 15% and gross profit is up 4% Supply constraints being addressed Good results from feedlotting CSR program to improve quality and quantity of traditional cattle Beef (USD'000s) 34,146 29,704 27,473 21,116 10,766 1
Slide 11: Stock Feed
Stock Feed Stock Feed (USD'000s) Contributes 14% of revenue and 11% of gross profitability Revenue is up 41% and gross profit is up 36% 23,950 Operating at full capacity Mash feed mixer established 16,965 Upgrade of full fat extrusion plant completed 11,287 Manufacturing fish and dog fee
Slide 12: Cropping
Cropping Contributes 13% of revenue and 27% of gross profitability Revenue is up 1% and gross profit is up 76% 15,753 Ha planted for summer cropping with majority dedicated to soya beans Excellent summer season with high yielding soya crop harvested (over 40,000 MT) Continued excellent per
Slide 13: Chicken & Egg
Chicken & Egg Contributes 9% of revenue and 7% of gross profitability Revenue is up 18% and gross profit is down 5% Overreaction to supply constraints has led to a nationwide overproduction, thereby reducing the margins Increase in egg production Increased uptake from retail outlets Chicke
Slide 14: Pork
Pork Contributes 7% of revenue and 3% of gross profitability Revenue is up 14% and gross profit is down 55% Increased production throughput Moratorium on imported raw materials leading to increase in costs and reduction in margins Capacity increase completed Pork (USD'000s) 11,575 10,196 8
Slide 15: West Africa
West Africa Contributes 4% of revenue and 3% of gross profitability Revenue is up 41% and gross profit is up 30% Continued expansion with two new Shoprite stores opened in 2012, four additional Shoprite stores expected in 2013 Increased revenue from new stores New management leading to imp
Slide 16: Bakery & Flour
Bakery & Flour Contributes 4% of revenue and 3% of gross profitability Revenue is down 11% and gross profit is up 15% Reduction in wheat prices Removal of VAT on wheat and wheat products in Budget 2013 led to reduced sales in H1 FY 2013 Stronger demand expected going forward Bakery & Flour
Slide 17: Fish, Zamchick Inn & Leather
Fish, Zamchick Inn & Leather Contributes 3% of revenue and 4% of gross profitability Fish, Zamchick Inn & Leather (USD'000s) Revenue is up 11% and gross profit is up 23% 5,564 5,032 Strong demand for fish, improved supply Increased competition in quick service restaurants 3,254 Increased e
Slide 18: Milk & Dairy
Milk & Dairy Milk & Dairy (USD'000s) Contributes 3% of revenue and 6% of gross profitability 6,633 5,919 Revenue is down 7% and gross profit is down 14% 5,515 Demand continues to be strong and outstripping supply 4,556 4,440 3,612 Disease issues prevalent in H2 2012 leading to reduced 3,119
Slide 19: H1 FY 2013 Performance
H1 FY 2013 Performance
Slide 20: Abridged Income Statement
Abridged Income Statement ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL % CHANGE % CHANGE Six months to 31 Six months to 31 Six months to 31 Year to 30 Sept Year to 30 Sept 2013 VS 2012 2013 VS 2012 March 2013 March 2012 March 2012 2012 2012 excl Zamanita incl Zamanita excl Zamanita incl Zamanita excl Zamanita
Slide 21: Abridged Balance Sheet
Abridged Balance Sheet ACTUAL ACTUAL ACTUAL ACTUAL Six months to 31 Six months to 31 Six months to 31 Year to 30 September March 2013 March 2012 March 2012 2012 excl Zamanita incl Zamanita USD'Ms Provision Provision Non Current Assets 183.7 171.3 171.3 181.5 Current Assets 147.7 84.3 85.4 135.5 TOTA
Slide 22: Abridged Cash Flow
Abridged Cash Flow ACTUAL ACTUAL ACTUAL ACTUAL Six months to Six months to Six months to Year to 2012 31 March 2013 31 March 2012 31 March 2012 excl Zamanita incl Zamanita USD'Ms Provision Provision Profit/(loss) Before Taxation 6.4 8.1 (1.6) 3.1 EBITDA 16.6 15.3 5.7 17.4 Movement in Working Capital
Slide 23: Segmental Summary
Segmental Summary Segment 2013 2012 Movement % of Group 2013 2012 Movement % of Group Revenue Revenue (31 March Gross Profit Gross Profit (31 March USD USD ‘000s 2013) USD ‘000s USD ‘000s 2013) ‘000s Edible oils* 38,825 28,483 36% 23% 9,232 5,440 70% 16% Beef 34,146 29,704 15% 20% 11,240 10,766 4% 2
Slide 24: Summary/Outlook
) 4} 7 q m Products PLC
Slide 25: Summary/Outlook
Summary/Outlook • Integrated business model provides strong foundations for growth: Underpins margin capture and value-add Secures supply chain Reduces risk and earnings volatility • Targeted re-investment will continue to drive organic growth via: Increased production and efficiencies in st
Slide 26: Mpongwe Farm
Mpongwe Farm Mpongwe Farm
Slide 27: Contact
CONTACT uo\* Private Bag 17, Woodlands Plot 4970, Manda Road Industrial Area, Lusaka, Zambia Tel: +260211 369000 Fax: +260211 369050 www.zambeefplc.com