UAC NIGERIA PLC UAC OFOF NIGERIA PLC UAC OF NIGERIA PLC 9M 2013 Results Presentation H1 2014 Results Presentation Important Notice This presentation contains or will contain 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" "estimate", "project", "target", "risks", "goals" and similar terms and phrases have been used to identify the forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally. UAC of Nigeria cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain of these risks or factors, reference should be made to the Company’s disclosure materials filed from time to time with Securities & Exchange Commission in Nigeria. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 2 VISION To be number one in our chosen markets, providing exceptional value to our customers MISSION To grow our top-line at twice the rate of GDP growth in Nigeria at a blended EBIT profitability of 15% OUR VALUES 1. Our Customers are our Focus 2. We act with Respect for the Individual 3. We act with Integrity in everything we do 4. Team spirit will give us good success 5. Innovation for business sustenance and value creation 6. We are Open and Communicate with our people DESIRED OUTCOME Adding value to the lives of our stakeholders 3 Contents 1 22 Overview of the business in h1 2014 Larry Ettah GMD/CEO Financial Performance review Abdul Bello CFO Summary & outlook Larry Ettah GMD/CEO 3 3 4 Contents 1 22 Overview of the business in h1 2014 Larry Ettah GMD/CEO FINANCIAL Performance review Abdul Bello CFO Summary & outlook Larry Ettah GMD/CEO 3 3 5 Kingsway Chilli Beef Sausage Roll -110g Operations Summary ….these are challenging times Security concerns continue to pose a challenge in key markets constraining trade execution. The national commercial map has shrunk and activities are tepid as consumer confidence ebbs Competition intensifies across all categories over a redrawn economic map 7 UAC Shareholding Structure UAC has interests in 10 subsidiaries spanning 4 key verticals, plus a closed pension fund administrator 87.0% 76.0% 64.7% 64.9% 46.0% UPDC 50.1% 51.0% 51.0% 51.0% 51.0% CAP UFL UACR LSF MDS PPPN GCL WSWNL UNICO Uacn property devt company plc. Chemical & allied products plc. Uac foods ltd. Uac restaurants ltd. Livestock feeds plc. Mds logistics ltd. Portland paints & products nigeria plc. Grand cereals ltd. Warm spring waters nigeria ltd. Unico (cpfa) ltd 8 Business Review – UACN PLC UAC’s holding company structure consists of a Corporate Centre overseeing a portfolio of interests across 4 key verticals Food & Beverage Grand Cereals Ltd Grand Oil, Vital Feeds, Grand Maize Flour, Grand Maize Grits, Rich Fill UAC Foods Ltd Gala, Funtime Cake, Funtime Coconut Chips, Snaps Puffed Maize, Delite Fruit Juice, SWAN Water UAC Restaurants Ltd Mr Bigg’s Real Estate Paints Logistics UPDC PLC CAP PLC MDS Logistics Ltd Property Development Facility Management Property Sales Property Lease Dulux Paints Caplux Paints Warehousing Haulage Redistribution Others UNICO CPFA Ltd Closed Pension Fund Administrator Portland Paints & Products Nigeria PLC Sandtex Decorative Paints Hempel Marine Paints Livestock Feeds PLC Animal Feeds Warm Spring Waters Nig. Ltd Gossy Water 9 Operations Review UAC FOODS LTD GRAND CEREALS LTD UAC RESTAURANTS LTD Turnover up 10% Turnover up 3% Turnover down 19% Launch of new variants (Kingsway beef roll and Gala Chicken sausage roll) Endorsement of Fish Feed by Cat Fish Farmers Association of Nigeria Manufacturing plant upgrade progressing satisfactorily Security challenges have impacted on sales execution Elevated input costs/scarcity of raw materials impacted margins Business restructuring continues Increased volume in Bottled Water and Dairies segments Egg glut, lack of access to border markets and insecurity impacted volumes Operations Review UPDC PLC Turnover down 6% Completed Vintage Gardens Phase 1 Mobilised to site on Olive Court Phase 1 (Ibadan), Metro City Phase 2 (Abuja), Pineville Phase 1 (Asaba) Unfavourable portfolio mix impacting margins Rising finance costs due to pricing, delayed debt refinancing and delayed take-off of projects Security challenges and uncertainty impacting performance MDS LOGISTICS LTD Turnover up 4% Completed and commissioned new Haulage workshop Security challenges in the north impacting clients’ volume throughput CAP PLC Turnover up 16% Opened 3 Dulux Colour Shops and 1 Colour Centre Installed modern effluent treatment plant Operations Review LIVESTOCK FEEDS PLC PORTLAND PAINTS PLC Turnover up 24% Turnover up 6% Ikeja Factory upgrade completed Execution of new sales model nearing completion Improved collaboration with Grand Cereals Egg glut and insecurity impacting volumes Restructuring and alignment progressing satisfactorily Gala Chicken Sausage Roll – N70 13 Contents 1 22 Overview of the business in h1 2014 Larry Ettah GMD/CEO FINANCIAL Performance review Abdul Bello CFO Summary & outlook Larry Ettah GMD/CEO 3 3 14 Review of Financial Performance Turnover up 8%; key drivers – UAC Foods, Grand Cereals and CAP as well as Portland Paints consolidation Gross Profit down 3% on the back of input cost pressures in certain categories Selling and distribution expenses up as a result of increased spend on sales/marketing activities and the execution of a new sales model by Portland Paints Finance costs up mainly on account of increased cost of borrowing in UPDC due to delayed refinancing of its debt PBT reduction is mainly on account of margin pressures and elevated financing costs in UPDC 15 Summary of Financial Performance 30 June 14 N'000 40,255,798 (31,083,616) 9,172,183 30 June 13 N'000 37,345,063 (27,916,295) 9,428,768 Selling and distribution expenses Administrative expenses Other gains Operating profit (1,585,009) (3,790,332) 2,288,624 6,085,466 (907,186) (3,965,576) 1,362,416 5,918,422 Finance income Finance cost Net finance income / (cost) 673,989 (1,697,782) (1,023,792) 543,002 (1,348,452) (805,450) Profit before taxation Taxation 5,061,674 (1,580,294) 5,112,973 (1,739,173) 3,481,380 3,373,800 8,654 53,288 1,977,379 1,512,655 1,619,782 1,807,306 3,490,034 3,427,088 Revenue Cost of sales Gross profit Profit from continuing operations Profit from discontinued operations Profit attributable to: Equity holders of the parent Non controlling interest Total comprehensive income for the period 16 Other Gains (Loss)/Profit on sale of PPE REIT income Profit on disposal of investment properties Realisation on GM liquidation Other trading income Total Other Gains 30 Jun 14 30 June 13 N'000 N'000 (34,934) 146,529 1,474,955 94,680 991,203 203,040 550,881 224,684 2,288,622 1,362,416 17 Review of Financial Performance (N’Billion) 37.3 40.3 2013 9.4 9.2 5.1 turnover 2014 gross profit 5.1 PBT 18 YOY Margins Analysis Gross Margin EBIT Margin 16% 25% 15% 23% 2013 2014 2013 2014 Gross Margin down due to input cost pressures; concerted efforts to contain trend 19 Capital Structure Debt to Equity (x) 0.37 Interest Cover (x) 0.37 4.39 3.58 2013 2014 2013 2014 Debt to Equity Ratio flat due to delayed refinancing of UPDC debt; Interest cover down on the back of increasing interest cost 20 ROE/ROA ROE ROA 9.61% 9.93% 2013 2014 8.18% 8.23% 2013 2014 21 Summary of Financial Position 31 Dec 14 N'000 74,232,004 31 Dec 13 N'000 73,712,234 8,720,252 40,089,172 48,809,425 8,893,801 42,409,459 51,303,260 123,041,428 125,015,494 Non-current liabilities Borrowings Others Total 9,577,622 4,064,811 13,642,433 5,909,680 5,055,243 10,964,923 Current liabilities Short-Term Bank Facilities Others Total 16,534,568 22,558,665 39,093,233 20,285,954 22,444,798 42,730,752 Total liabilities 52,735,666 53,695,674 Equity Ordinary share capital Reserves Equity attributable to Parent Non controlling interest Total equity 960,432 40,927,673 41,888,105 28,417,657 70,305,762 960,432 41,975,656 42,936,088 28,383,732 71,319,819 123,041,428 125,015,494 Non-current assets Current assets Cash and short-term deposits Others Total Total assets Net Equity & Liabilities 22 Summary of Financial Position (N’Billion) 74 74 71 70 51 49 43 39 11 14 Non current assets Current assets Current liabilities Non current liabilities Net assets 23 Segment Analysis - Turnover H1 2014 Logistics 6% H1 2013 Real Estate 15% Real Estate 18% Logistics 7% Paints 12% Food & Bev 67% Paints 8% Food & Bev. 67% Turnover for Paints category is boosted by the consolidation of Portland Paints 24 Segment Analysis – PBT H1 2014 H1 2013 Others 3% Real Estate 17% Food & Bev. 43% Logistics 13% Paints 26% Food & Bev. 35% Real Estate 31% Logistics 13% Paints 18% Portland Paints consolidation boosts paints category contribution; UPDC margin pressures and elevated finance costs impact Real Estate category25 Performance of Key Subsidiaries UAC Foods (N’Million) 7,080 7,755 Grand Cereals (N’Million) 2013 864 Turnover 2014 5,931 16,742 771 2013 753 Turnover PBT UPDC (N’Million) 6,319 15,081 2014 1,161 PBT CAP (N’Million) 2013 3,349 2014 2013 2014 2,883 910 1,624 1,095 806 Turnover PBT Turnover PBT 26 Performance of Key Subsidiaries MDS Logistics (N’Million) 2,267 2,359 UAC Restaurants (N’Million) 2013 2014 805 2013 2014 653 637 608 99 Turnover PBT Turnover Livestock Feeds (N’Million) 3,356 70 PBT Portland Paints (N’Million) 2013 2014 1,354 1,440 2013 2014 2,702 95 Turnover PBT 161 87 126 Turnover PBT 27 Marketing Managers’ Quarterly Meeting 28 Contents 1 22 Overview of the business in h1 2014 Larry Ettah GMD/CEO FINANCIAL Performance review Abdul Bello CFO Summary & outlook Larry Ettah GMD/CEO 3 3 29 Summary Social and Economic dislocations tempered performance in the first half of the year The business continues to face headwinds of rising input costs and intense competition Volumes and margins have come under severe pressure Innovative actions and retail execution strategies launched in H1 and pursuit of cost efficiencies should sustain returns in H2 30 2014 Priorities Grow volumes Tackle margin challenges across key subsidiaries Upskill people; leverage technology Conclude integration process for new acquisitions Manage enterprise risks Innovation 31 New Workshop for MDS Haulage Operations
© Copyright 2024 ExpyDoc
