Quantum Foods Holdings Ltd · JSE:QFH
Quantum Foods — FY2021 Earnings Presentation
26 slides from Quantum Foods's earnings presentation, September 2021
Slide 1: Quantum Foods Results Presentation 2021
Quantum Foods Results Presentation 2021 1 Presentation Results
Slide 2: Agenda
Quantum Foods Results Presentation 2021 2 Agenda
Slide 3: Salient features
Salient features • Steep increases in all key raw material costs Revenue • Negative financial impact of unbalanced layer 6% placement cycle HEPS • Major customer went out of business 35% • Disruptions in supply chains due to COVID-19, KZN unrest and highly pathogenic avian influenza Cash flow from (
Slide 4: Financial overview
Quantum Foods Results Presentation 2021 4 Financial overview Financial overview A Muller
Slide 5: Statement of income
Statement of income 2021 2020 % For the year ended 30 September Rm Rm change Revenue 5 401.1 5 095.1 6 Operating profit* 147.6 218.5 (32) Income/(loss) from associates 1.8 (0.4) Net finance cost (7.1) (2.6) Profit before tax 142.3 215.5 (34) Tax (36.5) (60.6) Profit for the period 105.8 154.9 5 * Op
Slide 6: Revenue analysis
Revenue analysis Animal feeds Total: R5 401m (2020: R5 095m) Animal feeds Eggs R2 441m Layer and broiler farming 45% 2020: R2 237m | 44% Related businesses on Eggs Farming the African continent R1 229m R1 412m 6 23% 26% 2020: R1 230m | 24% 2020: R1 350m | 27% Financial overview Quantum Foods Results
Slide 7: Segment results
Segment results 2021 2020 Adjusted operating profit Rm Rm Eggs (5.0) 6.3 Farming 34.3 121.5 Animal feeds 100.9 99.3 Other African countries 30.8 5.9 Head office costs (16.7) (13.4) Profit for the year 144.3 219.6 7 Financial overview Quantum Foods Results Presentation 2021
Slide 8: Statement of financial position
Statement of financial position 2021 2020 As at 30 September Rm Rm Non-current assets 1 360.6 1 222.1 Net working capital (excluding lease liabilities) 949.8 713.6 Non-current liabilities (excluding lease liabilities) (274.9) (229.9) Cash 73.3 251.8 Total net assets 2 108.8 1 957.5 Lease liabilities
Slide 9: Statement of cash flow
Statement of cash flow 2021 2020 For the year ended 30 September Rm Rm Cash operating profit 295.3 332.5 Working capital outflow (259.3) (70.3) Cash effect of hedging activities 11.1 2.7 Tax paid (22.7) (48.6) Cash generated by operations 24.3 216.3 Capital expenditure (108.6) (91.2) Proceeds from s
Slide 10: Capital expenditure
Capital expenditure 2021 Future Rm Rm RSA Expansion/efficiency 42.1 98.4 – Feed mills 19.3 7.3 – Broiler hatcheries 2.0 71.9 – Farms 11.9 4.8 – Packing stations 0.4 – – Energy 7.7 0.2 – ERP system 0.8 14.2 Replacement/compliance 43.9 51.2 10 Africa Financial overview Quantum Foods Results Presentati
Slide 11: Operational overview
Animal feeds Eggs Layer and broiler farming 11 Related businesses Business overview Quantum Foods Results Presentation 2021 on the African continent Operational overview H Lourens
Slide 12: Nova Feeds
Nova Feeds High raw material costs • Supply chain well managed during disruptions • Raw material price increases negatively impacted profitability • Decrease in volumes • Margins remained stable • Cost base well managed • Operational efficiencies remained at high levels • Impact of load shedding mit
Slide 13: Layer farm business
Layer farm business Unbalanced layer placement cycle in 2021 • Breeder performance on standard • Feed cost increases not recovered in • Rearing cycle corrected during 2021 point-of-lay prices • Layer performance below expectations • HPAI outbreak on one rearing farm due to placement cycle • Egg prod
Slide 14: Nulaid Eggs
Nulaid Eggs High cost of eggs from farms • Sales volumes decreased due to lower • Operational efficiencies remained at a farm production high level • Egg prices increased by 10.5% • Decline in optimal product mix due to • Increase in feed cost impacted age of layer flock profitability negatively • C
Slide 15: Broiler farm business
Broiler farm business Loss of a major customer • Breeder performance remained below • Expansion of Hartbeespoort hatchery target approved by the board • Broiler performance remained at a high • Costs base negatively impacted by level volume decrease and HPAI • HPAI and KZN unrest impacted availabili
Slide 16: Rest of Africa
Rest of Africa Improved results Zambia • Selling prices for day-old broilers and • Excellent financial results in Zambia pullets increased • Higher productivity on all the farms Mozambique • Volumes increased • Mozambique business remained cash positive • Final product prices increased in all catego
Slide 17: Management focus
Quantum Foods Results Presentation 2021 17 Management focus Management focus H Lourens
Slide 18: Focus areas 2022
Focus areas 2022 • Execution of investment in broiler hatchery • Commence stocking of Grand Parent Farm with parent stock • Improve efficiencies throughout the business • Increase volumes in all product categories • Relentless focus on cost management 18 Management focus Quantum Foods Results Presen
Slide 19: Thank you
Quantum Foods Results Presentation 2021 19 Management focus Thank you
Slide 20: Appendix
Quantum Foods Results Presentation 2021 20 Appendix Appendix
Slide 21: Safex yellow maize
Safex yellow maize Rand per ton 3 850 3 372 3 550 3 250 2 749 2 950 2 634 2 650 2 460 21 2 350 2 099 Appendix Quantum Foods Results Presentation 2021 2 050 1 750 Sep 16 Mar 17 Sep 17 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 Average for financial period
Slide 22: CBOT US Dollar soybean meal
CBOT US Dollar soybean meal 475 450 425 390 400 375 341 314 350 306 22 325 297 Appendix Quantum Foods Results Presentation 2021 300 275 250 Sep 16 Mar 17 Sep 17 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 Average for financial period
Slide 23: Rand:US Dollar exchange rate
Rand:US Dollar exchange rate 19 18 17 16.22 16 14.83 14.34 15 13.37 14 23 13.07 Appendix Quantum Foods Results Presentation 2021 13 12 11 Sep 16 Mar 17 Sep 17 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 Average for financial period
Slide 24: Layer productivity index
Layer productivity index 150 140 130 120 24 110 Appendix Quantum Foods Results Presentation 2021 100 90 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 25: Broiler productivity index
Broiler productivity index 150 140 130 120 25 110 Appendix Quantum Foods Results Presentation 2021 100 90 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 26: www.quantumfoods.co.za
26 Quantum Foods Results Presentation 2021 www.quantumfoods.co.za