Zambeef Products Plc · LSE:ZAM
Zambeef Products — FY2013 Earnings Presentation
31 slides from Zambeef Products's earnings presentation, September 2013
Slide 1: Presentation of Results FYE 30th September 2013
PRESENTATION OF RESULTS FYE 30th SEPTEMBER 2013
Slide 2: Mpongwe Farm / Zamanita Solvent Extraction Plant
Mpongwe Farm Zamanita Solvent Extraction Plant
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: 2013 Key Points
2013 Key Points S Products PLC
Slide 5: 2013 Financial Key Points
2013 FINANCIAL KEY POINTS REVENUE GROSS PROFIT * NET CASH FLOW ^ GEARING 2013: USD 21 m 2013: 45% 18% 10% INFLOW 2012: USD 54 m 2012: 87% 2013: USD 300 m 2013: USD 104 m OUTFLOW 2012: USD 255 m 2012: USD 94 m ADJUSTED PBT *+ EBITDA * 63% 19% 2013: USD 6 m 2013: USD 22 m 2012: USD 15 m 2012: USD 27 m
Slide 6: 2013 Challenges
2013 CHALLENGES Zambeef faced a number of challenges in H2 2013: Selling price of wheat decreased by approximately ZMW 479 (USD 90) per ton - group profits reduced by approximately ZMW 21.5 million (USD 4 million) Performance of perishable products was negatively impacted in Q4 as a result of ad
Slide 7: 2013 Highlights
2013 HIGHLIGHTS Group realised a Net Cash INFLOW before Financing Activities of ZMW 111.8 million (USD 21 million); in line with strategy set out at time of AIM float in June 2011 compared to a Net Cash OUTFLOW before Financing Activities in 2012 of ZMW 291.3 million (USD 54.2 million) Gearing
Slide 8: Divisional Review
lew ional Revi IvIS D 2 Products PLC
Slide 9: Retail
Retail Stock Write-off Decisive action taken in response to beef imports issue Entire stock of beef products destroyed – total one-off cost of USD 1.4m Ceased all imports of beef products going forward – short-term impact on margin while additional supply of cattle secured Reduced Retail Reven
Slide 10: Cropping
Cropping Contributes 21% (15%) of revenue and 28% (22%) of gross profitability Revenue is up 78% and gross profit is up 42% Gross profit margin = 37% (2012: 45%) 23,514 Ha planted – predominantly soya, wheat, maize Exceeded budgets on all crops Continued excellent performance of Mpongwe
Slide 11: Edible Oils
Edible Oils Contributes 19% (16%) of revenue and 18% (10%) of gross profitability Revenue is up 49% and gross profit is up 96% Gross profit margin = 28% (2012: 21%) Recommenced crushing after expansion of plant – now running at 75% Crushed 60,000 M.T. Expect to crush c.75,000 M.T. in 201
Slide 12: Beef
Beef Contributes 17% (22%) of revenue and 19% (24%) of gross profitability Revenue is down 5% and gross profit is down 12% Gross profit margin = 32% (2012: 34%) Revenue and profitability impacted by issues with beef imports and associated write-off Buoyant demand between Oct 12 and June 13
Slide 13: Stock Feed
Stock Feed Contributes 14% (12%) of revenue and 11% (10%) of gross profitability Revenue is up 35% and gross profit is up 16% Gross profit margin = 22% (2012: 27%) Increased capacity by 30% during year Mash feed mixer established – will provide new products to support growth in Zambian cat
Slide 14: Chicken & Egg
Chicken & Egg Contributes 8% (9%) of revenue and 7% (9%) of gross profitability Revenue is up 11% and gross profit is down 22% Gross profit margin = 23% (2012: 32%) Overreaction to supply constraints has led to a nationwide overproduction, thereby reducing the margins Increase in egg produ
Slide 15: Pork
Pork Contributes 6% (8%) of revenue and 2% (7%) of gross profitability Revenue is down 5% and gross profit is down 63% Gross profit margin = 11% (2012: 30%) Significant increase in pig volumes Completion of upgrades to processing plant Ongoing improvements of facilities, plant and equipm
Slide 16: Mill & Bakery
Mill & Bakery Contributes 4% (6%) of revenue and 3% (5%) of gross profitability Revenue is down 17% and gross profit is down 33% Gross profit margin = 20% (2012: 27%) Increase in competition squeezed sales and margins Focus on sales via Zambeef retail and wholesale outlets Growth largely
Slide 17: Milk & Dairy
Milk & Dairy Contributes 3% (4%) of revenue and 5% (6%) of gross USD’m profitability 12 11 11 Revenue is up 10% and gross profit is down 17% 9 Gross profit margin = 43% (2012: 60%) 7 Demand continues to be strong 6 6 5 General overhead increases impacted gross and net profitability Initi
Slide 18: Fish, Zamchick Inn & Leather
Fish, Zamchick Inn & Leather USD’m Contributes 3% (4%) of revenue and 4% (5%) of gross profitability 12 Revenue is up 9% and gross profit is unchanged 11 11 Gross profit margin = 37% (2012: 38%) 9 Strong demand for fish but increased supply - focus on value 7 added products 6 Number of Zam
Slide 19: West Africa
West Africa Contributes 5% (4%) of revenue and 4% (3%) of gross profitability Revenue is up 23% and gross profit is up 58% Gross profit margin = 24% (2012: 23%) Continued expansion with three new Shoprite stores opened during the year Six stores in Nigeria and one new store in Ghana expect
Slide 20: 2013 Financials
ials Inanc 2013 F 2 Products PLC
Slide 21: Abridged Income Statement
Abridged Income Statement % CHANGE Year to 30 Sept Year to 30 Sept 2013 VS 2012 2013 2012* USD ‘000s Turnover 300,388 255,059 17.8% Gross Profit 104,102 94,398 10.3% Other Income 97 690 (85.9%) Administrative Expenses (89,300) (76,354) 17.0% Admin expenses excl Depreciation (79,835) (65,078) 22.7% D
Slide 22: Abridged Balance Sheet
Abridged Balance Sheet Year to 30 September Year to 30 September USD‘000s 2013 2012 Non Current Assets 280,285 181,502 Current Assets 122,566 135,457 TOTAL ASSETS 402,851 316,959 Capital and Reserves 250,704 147,616 Non-Current Liabilities 68,726 73,378 Current Liabilities 79,777 96,126 TOTAL EQUITY
Slide 23: Abridged Cash Flow
Abridged Cash Flow Year to 2013 Year to 2012 USD‘000s Profit Before Taxation 4,111 3,060 EBITDA 22,498 17,429 Movement in Working Capital (2,029) (45,781) Cash inflow/(outflow) from Operating Activities 20,469 (28,352) Investing activities 590 (25,847) Cash inflow/(outflow) from/(on) investment acti
Slide 24: Segmental Summary
Segmental Summary Segment 2013 2012 Movement % of Group 2013 2012 Movement % of Group Revenue Revenue (30 Sept 2013) Gross Profit Gross Profit (30 Sept 2013) USD ‘m USD ‘m USD ‘m USD ‘m Edible oils* 70 47 49% 19% 19 10 96% 18% Beef 61 64 (5%) 17% 20 22 (12%) 19% Stock feed 50 37 35% 14% 11 10 16% 11
Slide 25: Summary & Outlook
Summary & Outlook 2 Products PLC
Slide 26: Why Invest in Africa?
WHY INVEST IN AFRICA? TODAY FUTURE US$1.6 trillion US$2.6 trillion GDP Growth Africa’s collective GDP in 2008: Africa’s collective GDP in 2020 roughly equal to Brazil or Russia Consumer US$860 billion US$1.4 trillion Africa’s combined consumer Africa’s consumer spending in 2020 Spending spending in
Slide 27: Attractive Zambia Fundamentals
ATTRACTIVE ZAMBIA FUNDAMENTALS One of the fastest growing economies in SAA; with GDP growth averaging more than 6.5% over the last 5 years Ranked 9th inIMF’s forecast of the world’s fastest growing global economies Consumer sector growing at an average of >14% GDP per capita has increased fr
Slide 28: Summary/Outlook
Summary/Outlook • Business returned to cash generation in line with strategy set out at flotation • Strategic foundations for further growth in place – despite challenging year • Integrated business model continues to deliver benefits: Underpins margin capture and value-add Secures supply chain
Slide 29: Chiawa Farm
Chiawa Farm
Slide 30: Segmental Summary
Segmental Summary Revenue Gross Profit Chicken & Egg Chicken 8% Beef & Egg Beef Pork 7% Pork 19% 2% 17% 6% West Africa West Africa 4% 5% Fish 2% Fish 1% Cropping Cropping Zamchick Inn 1% 21% Zamchick Inn 1% 28% Leather 1% Leather 1% Mill & Bakery Mill & Bakery 4% 3% Edible Oils Edible Oils 18% 19% S
Slide 31: Contact
CONTACT uo\* Private Bag 17, Woodlands Plot 4970, Manda Road Industrial Area, Lusaka, Zambia Tel: +260211 369000 Fax: +260211 369050 www.zambeefplc.com