Uac Of Nigeria Plc · NSENG:UACN
Uac Of Nigeria — H1 2018 Earnings Presentation
19 slides from Uac Of Nigeria's earnings presentation, Aug 7, 2018
Slide 1: UAC of Nigeria PLC – H1 2018 Earnings
UAC of Nigeria PLC – H1 2018 Earnings Mr Abdul Bello (Group CEO) Mrs Adeniun Taiwo (CFO) 7 August 2018
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements which reflect management's expectations regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expects", "intend" "est
Slide 3: Table of Contents
Table of Contents H1 2018 Highlights 4 H1 2018 Financial Review 8 Outlook 15 Appendix 17
Slide 4: H1 2018 Highlights
H1 2018 Highlights Mr Abdul Bello (Group CEO)
Slide 5: Improving Macro Economic Environment but Caution Persists
Improving Macro Economic Environment but Caution Persists Sustained GDP growth driven by higher oil revenues Foreign-currency reserves impacted by increase in oil output USD b mbpd GDP Growth (YoY) 100.0 2.08 1.89 1.67 2.00 3.0% 1.59 1.60 80.0 1.49 1.43 1.49 69.7 1.9% 2.0% 1.39 66.1 2.0% 1.21 61.4 1
Slide 6: Key Highlights for H1 2018
Key Highlights for H1 2018 Financial Highlights Strategic Update • Turnover decline driven mainly by Animal Feeds and other Edibles • UAC of Nigeria to operate as a simpler and leaner “HoldCo”, with increased accountability at subsidiary level - Partially offset by double digit revenue growth in Pai
Slide 7: Efficiencies & lower finance costs offsetting revenue decline
Efficiencies & lower finance costs offsetting revenue decline • Group revenue down 21.9% YoY in H1‘18 to ₦37.0 billion H1 2018 Financial Performance - Decline primarily driven by a drop in the Animal Feeds & Other Edibles segment, due to challenging market dynamics - Negative impact partially offset
Slide 8: H1 2018 Financial Review
H1 2018 Financial Review Mrs Adeniun Taiwo (CFO)
Slide 9: Drop in Revenue Offset by Reduction in Cost of Sales and Finance Cost
Drop in Revenue Offset by Reduction in Cost of Sales and Finance Cost • Revenue down 21.9% mainly on account of decline in sales in the Animal Feeds & other Edibles and Real Estate Continuing Operations (in N’Million) H1 2018 H1 2017 Var segments, which was only partially offset by a positive perfor
Slide 10: Statement of Financial Position
Statement of Financial Position • 79.0% increase in Cash & cash equivalents mainly from proceeds from rights issue and reduced stocking of inventories (in N’Million) 30.06.2018 31.12.2017 on account of lull in business PPE 21,146 21,538 Intangible assets and goodwill 1,542 1,606 Investment property
Slide 11: Cash Flow Statement
Cash Flow Statement • Negative net cash flow from operating activities of ₦5.0bn - Mainly driven by an outflow Trade and other payables (in N’Million) H1 2018 H1 2017 in H1 on account of better payment terms with suppliers, which resulted in lower input costs - Impact of negative cash flow from oper
Slide 12: Breakdown of Revenue Dynamics
Breakdown of Revenue Dynamics Revenue (₦m) • Animal Feeds & other Edibles down 38.3% YoY in H1’18 -21.9% - Intense competition, with more aggressive pricing strategy and favourable terms 47,337 36,982 of trade by new entrants leading to market share losses 50,000 - Management focused on regaining lo
Slide 13: Breakdown of EBIT Dynamics
Breakdown of EBIT Dynamics EBIT (₦m) EBIT down 30.5% YoY in H1’18 5,000 -30.5% 3,910 2,718 • Animal feeds & other Edibles dropped by 64.2%, primarily due to lower revenue 4,000 459 - Management will continue to drive efficiencies, as well as pursue attractive 340 228 growth areas offering procuremen
Slide 14: Breakdown of PBT Dynamics
Breakdown of PBT Dynamics PBT (₦m) Profit before Tax up 14.8% YoY in H1’18, driven by UAC’s healthier capital structure and improved operational efficiency in key segments +14.8% 1,831 2,102 4,000 • Paints up 41.9% mainly due to operational efficiencies and turnover growth Real Estate 857 Other 789
Slide 15: Outlook
Outlook Mr Abdul Bello (Group CEO)
Slide 16: Focused on Implementing Initiatives Geared to Unlock Value
Focused on Implementing Initiatives Geared to Unlock Value Strategic Initiatives 1 • Grow portfolio of subsidiaries to undisputed market leaders Subsidiaries to take centre • Strengthen and empower subsidiary leaders to independently drive value creation stage • Increase accountability for deliverin
Slide 17: Appendix
Appendix
Slide 18: H1 2018 business mix
H1 2018 business mix Revenue EBIT * Profit Before Tax * 0% 3% 7% 7% 23% 21% 23% 15% 14% 0% 2% 51% 16% 17% 23% 38% 40% 0% Animal Feeds Packaged Foods Animal Feeds Packaged Foods Animal Feeds Packaged Foods QSR Paints QSR Paints QSR Paints Logistics Other Logistics Other Logistics Other Real Estate Re
Slide 19: Definition of terms
Definition of terms Gross Profit refers to Revenue minus Cost of sales. Gross Profit Margin corresponds to Gross Profit as a % of Revenue. Operating Expenses corresponds to Selling and distribution expenses, Administrative expenses and Other operating expenses. EBIT refers to Gross Profit minus Oper