Guinness Nigeria PLC H1 F 13 Performance Investor Briefing

Transcription

1 Guinness Nigeria PLC H1 F 13 Performance Investor Briefing Seni Adetu, Managing Director /CEO Lisa Nichols, Finance/Strategy Director Sesan Sobowale, Corporate Relations Director 12 th February 2013

2 Outline of H1 F 13 Performance Briefing Introduction Seni Adetu Guinness Nigeria Vision Seni Adetu Summary of Financial Performance Seni Adetu Financial Performance Lisa Nichols Strategic Priorities Seni Adetu Q&A Sesan Sobowale 2

3 Guinness Nigeria Vision Seni Adetu, Managing Director & CEO

4 GNplc is well-positioned to win in Nigeria Vision Statement Guinness Nigeria will be the most iconic company in Nigeria History in Nigeria for 62 years Strong portfolio diversity including alcoholic and non-alcoholic beverages covering a wide range of consumer segments Commitment to significant investment to deliver long-term growth Major investments in capacity expansion Business doubled in the past 4 years Largest Guinness market in the world in net sales to be sustained Strong values: Developing talent Positively impacting the communities in which we operate Strong governance and ethical standards Focused on People, Performance, Reputation

5 YoY pricing and delivery of production efficiencies helped deliver a positive Gross Profit H1 F'13 vs. H2 F'12 Revenue +5% Gross Profit Advert. & Prom. Exp. Distribution Exp. Admin. Exp. Operating Profit Net Other Fin. cost Profit Before Tax +1% +6% +1% +6% -22% -4% >-100% 995k -16% 5

6 FY13 H1 Financial Update Lisa Nichols Finance/Strategy Director

7 GNplc H1 FY13 results Statement of Comprehensive Income 6 months ended 6 months ended Growth 31-Dec Dec-2011 N'm N'm % Revenue 65,689 62,843 5% Cost of sales (37,158) (34,726) 7% Gross profit 28,531 28,117 1% Advertising and promotion expenses (5,658) (5,362) 6% Distribution expenses (7,099) (7,041) 1% Administrative expenses (4,948) (4,675) 6% Other income % Operating profit 11,193 11,628-4% Other Finance income % Other Finance charges (1,857) (644) 189% Net Other Finance income / (cost) (1,753) (425) -312% Profit before taxation 9,440 11,203-16% Taxation (3,021) (3,585) -16% Profit for the period 6,419 7,618-16% 7

8 Summarised balance sheet Statement of financial position As at As at 31-Dec Dec-2011 N'm N'm Assets Non-current assets Intangible assets Property, plant and equipment 82,716 61,165 Other long term debtors and prepayment Deferred tax Asset 1,606 1,614 85,394 64,174 Current assets Inventories 14,336 14,515 Trade and other recievables 15,850 10,761 Short Term Investment Cash and cash equivalents 4,351 9,735 34,537 35,011 Total assets 119,931 99,185 Liabilities Current liabilities Bank overdraft 2,252 2,887 Trade and other payables 38,624 34,508 Corporate tax payable 6,589 7,045 Dividend payable 5,611 3,479 Borrowings 2,564-55,640 47,919 Non-current liabilities Finance lease obligations 7,928 1,435 Deferred tax liabilities 12,721 11,508 Long term employee benefits 3,102 3,763 23,752 16,707 Total liabilities 79,392 64,625 Equity Ordinary share capital Share Premium 8,826 1,546 Revaluation reserve Retained earnings 30,960 32,277 Equity attributable to equity holders of the Company 40,539 34,560 Non controlling interest Total equity 40,539 34,560 Net equity and liabilities 119,931 99,185 8

9 Drivers of revenue Drivers of revenue Dec 2012 vs. Dec 2011 (Nb) Dec 2011 Price increases Volume downside Export sales Trade discounts Product mix Dec

10 Drivers of profit Dec-2012 N'm Dec-2011 N'm Gross profit 28,531 28,117 Advertising and promotion (5,658) (5,362) Distribution (7,099) (7,041) Administrative expenses & other (4,580) (4,085) Operating profit 11,193 11,628 Net other finance income / (cost) (1,753) (425) Profit before taxation 9,440 11,203 Taxation (3,021) (3,585) Net profit 6,419 7,618 10

11 Strategic Priorities Seni Adetu Managing Director & CEO

12 Strategic Imperatives Vision: Most iconic company in Nigeria Superior Total Shareholder Returns Employer of Choice Most Reputable in the Community Winning with our Brands Sustainable Innovation RTM/Sales Execution Capacity & COGS Employee Engagement Exceptional Performance Culture Talent Development Community Investment Responsible Drinking Compliance & Ethics Equitable Tax & Tariff

13 Strategic Imperative Superior Total Shareholder Returns

14 We Brilliantly Executed Our Marketing Plan in H1 Guinness Harp Malta Guinness Smirnoff Ice Table of Men campaign EPL broadcast sponsorship Fly With The Eagles campaign Guinness Mega Millions in-bar promotion Arsenal participation Malta Guinness Low Sugar campaign and sampling MGLS distribution drive Bus branding Malta Guinness parity pricing Harp in-bar promotion x 2,500 outlets Improved media and OOH visibility Harp Rhythm Unplugged sponsorship Smirnoff sampling & events Smirnoff Midnight Circus events

15 Innovation SNAPP expansion nationally

16 We Brilliantly Executed Our Sales Plan in H1 Project Cold Guinness Distribution Centre (GDC) 1300 chillers delivered in H1 Delivers against cold is king opportunity Distribution 50% Cold space, deliver 3-5 degrees serve in outlets (current average is 4.3 in 14k outlets) Rural distribution Expanded availability Improved price compliance Increased visibility in rural areas Special Events Activated 30 distributors nationally >Supported several parties & social events in December 2012 Made GN brands first choice for parties Drove convenience, availability & visibility Provided innovation sampling opportunity

17 Our branding programmes cut across the value chain Key Distributor Warehouse Wholesaler Warehouse Win share of mind with key distributors Be visible Restore confidence to distributors and trade partners Several warehouses already branded Improved distribution at wholesale. Improved relationship with wholesalers. Improved visibility Flagship Outlets >410 flagship outlets already branded A class outlets Cutting edge visibility & exclusivity in bars Guard against delisting

18 Our trade assets & events excited trade & consumers Trade Assets Tables & chairs distributed to trade in H1, more in H2 Van Branding Top of the mind awareness for our brands Win with consumers & trade Winning at the moment of choice >Significant number of vans already branded, more in H2 Win key distributor share of mind Mobile billboard for GN Increased ROS owing to visibility Carnivals Activated in 5 locations in December (full month in 2, 3 weeks in 2 and 2 weeks in 1)

19 We have made major investments in our Supply base Benin line 10 Benin CO2 plant Benin air-building H1 Completed Projects DPV stairway installation processing BBT stairway Benin Line 10 office gate New cullet area Benin warehouse

20 Strategic Imperative Employer of choice

21 We are building a winning organisation that stands us out as the employer of choice All staff conference hosting employees + some Diageo Africa Exec Talent initiatives: Early Career Programme & Growing Leaders Programme. H1 - events & award The Best Place to Work in Nigeria Award in FY 2012 Talent initiatives: Early career connect event Douala Embedded our values Pathway of Pride III Exceptional quality controls and compliance

22 Strategic Imperative Most reputable in the community

23 GN as a good corporate citizen in the community strengthens her reputation Quality & Safety Responsible Drinking & Community Investments Harp Lager & Malta Guinness won the 2012 Monde Gold Quality Award Zero LTA - recognition for exceptional safety culture by the Nigerian Employers Consultative Association (NECA) and the Nigerian Social Insurance Trust Fund (NSITF). Responsible drinking campaign 40 children from orphanages on various skill trainings The Social Enterprise Report Awards (SERA) & The Best Company in Labour Practice. Drink driving awareness in Dec with FRSC & employees World AIDS campaign with road walk, testing & counseling Motor Park Health and Safety Programme with Lagos State. 52nd Independence Day Golf Tournament at Ikeja Golf Club WOL at 50k population, Agoi- Ibami in Yakurr LGA of Cross River Relief materials to flood victims in Edo State.

24 As we look forward our key priorities will be: Invest to accelerate topline growth and win share across segments Premiumization Value segment Create profitable and sustainable innovation in key segments Drive competitive route to market that delivers outlet universe coverage, engagement and capability development of channels. Increase product supply availability through completion of expansion projects and driving efficiencies Partnership with government to maintain a balanced tax environment Reinforce our winning culture through leadership and values 24

25 Summary Attractive economic fundamentals Consumer trends in our favour GNplc well positioned to win and become the most iconic company in Nigeria 25

26 Questions?