Contents. Overview of the business in performance review (FY 2012 & Q1 2013) Update on strategic thrusts. outlook. Larry Ettah GMD/CEO

Size: px

Start display at page:

Download "Contents. Overview of the business in performance review (FY 2012 & Q1 2013) Update on strategic thrusts. outlook. Larry Ettah GMD/CEO"

Teresa Patterson
5 years ago
Views:

1 UAC OF NIGERIA PLC

2 Important Notice

3 Contents 1 Overview of the business in 2012 Larry Ettah GMD/CEO 2 performance review (FY 2012 & Q1 2013) Abdul Bello CFO 2 Update on strategic thrusts Joe Dada ED Corp. Services outlook Larry Ettah GMD/CEO 3 4 3

4 Contents 1 Overview of the business in 2012 Larry Ettah GMD/CEO 2 performance review (FY 2012 & Q12013) Abdul Bello CFO 2 Update of strategic thrusts Joe Dada ED Corp. Services outlook Larry Ettah GMD/CEO 3 4 3

5 MISSION VISION To be number one in our To grow our top-line at twice the rate of GDP growth in Nigeria at chosen markets, providing a blended EBIT profitability of exceptional value to our 15% customers 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

6 Operating Environment Review for 2012

7 Business Review UACN Plc UAC has defined its holding company structure as a model consisting of a Corporate Centre overseeing a portfolio of interests across 4 key verticals UAC Food & Beverages Real Estate Paints Logistics Others Grand Cereals Ltd. Grand Oil, Vital Feeds, Grand Maize Flour, Grand Maize Grits, Rich Fill UPDC Plc CAP Plc MDS Logistics Plc Property Development UNICO CPFA Ltd. In-house Pension UAC Foods Ltd. Gala, Funtime Cake, Funtime Coconut Chips, Snaps Puffed Maize, Delite Fruit Juice, SWAN Water Facility Management UAC Restaurants Ltd (168 Outlets) Mr Bigg s Warm Spring Waters Nig. Ltd. Gossy Water Property Sales Property Lease Dulux Paints Caplux Paints Warehousing Haulage Redistribution UAC Registrars Ltd. (Divesting Interest) GM Nig. Ltd. (Winding Down)

8 FY 2012 Highlights Spin-off of MDS Logistics and UAC Restaurants

9 Operations Review UAC FOODS LTD Sales and margin improvement despite dip in Q Operational reviews of dairies segment resulting in improved margins Tiger Brands partnership impacting: Asset Care Management (Production & Yield), Procurement Savings, Knowledge Transfer, Marketing & Distribution GRAND CEREALS LTD UAC RESTAURANTS LTD Turnover of N28.94 billion up 21% (N23.86 billion Dec 2011) Rights Issue fully subscribed Installation of 6,000 MT per month Poultry Feed plant in Onitsha Expansion of capacity of Fish Feed line Loss exposure reduced significantly in 2012 following successful restructuring and review of operations Improved compliance following regular franchise audits Revamp of over 100 restaurants, creating new look and feel

10 Operations Review UPDC PLC MDS LOGISTICS PLC Turnover of N12.04 billion, up 78% (N6.78 billion Dec 2011) Completed Grandville and Metro Gardens estates (both in Lagos) Improvement in occupancy levels and revenues at UPDC Hotel (turnover up 10%) Joint Venture opportunities being exploited Turnover of N4.04 billion up 20% (N3.37 billion Dec 2011) Significant growth in off-site inventory management services Restructuring of Capacity Holding Framework Strategic equity investor discussions progressing satisfactorily CAP PLC Turnover of N5.23 billion up 21% (N4.31 billion Dec 2011) Opened 4 Dulux Colour Centres and 8 Colour Shops Launched Dulux Ecosure Products Unveiled Tea Dance as Dulux Colour of the Year 2012

12 Contents 1 Overview of the business in 2012 Larry Ettah GMD/CEO 2 performance review (FY 2012 & Q1 2013) Abdul Bello CFO 2 Update on strategic thrusts Joe Dada ED Corp. Services outlook Larry Ettah GMD/CEO 3 4 3

13 2 3 ANALYSIS OF FINANCIALS

14 Important Notice

15 Review of Financial Performance Turnover recorded 17% growth despite adoption of full franchis

16 Summary of Financial Performance (YoY)

17 Summary of Financial Performance

18 Review of Financial Performance (N Billion) turnover gross profit operating profit PBT PAT

19 Analysis of Margins Gross Margin 27% EBIT Margin 27% 13% % 2013 Comments Gross Margin sustained at 27% despite increases in input costs in key categories

20 Improving Returns ROE ROA 12% 6% % 3% ROE and ROA grew on the back of a robust performance over the last 12 months

21 Review of Financial Position Non-current assets up due to increase in UPDC investment prop

22 Summary of Financial Position

23 Summary of Cash flows

Capital Structure Total Debt (N Billion) Total Equity (N Billion) 33.89 30.27 2011 2012 57.

24 Capital Structure Total Debt (N Billion) Total Equity (N Billion) Total Debt reduces as a result of reduced leverage in Grand Cereals following su

25 Segmental Analysis - Turnover FY 2012 FY 2011 The Food & Beverage, Real Estate, Logistics and Paints segments contr

26 Segment Analysis PBT FY 2012 FY 2011 Others; 2% Others; 3% Real Estate; 27% Real Estate; 30% Food & Beverages; 41% Food & Beverages; 50% Logistics 5% Logistics; 11% Paints; 15% Paints; 15% The Food & Beverage, Real Estate, Paints and Logistics segments contributed 97% of Group PBT for 2012

27 Performance of Key Subsidiaries UAC Foods (N Billion) Grand Cereals (N Billion) Margin pressures from grains prices, haulage & new factory take-off costs Turnover PBT Turnover UPDC (N Billion) PBT CAP (N Billion) Turnover PBT Turnover 1.66 PBT

28 Margins by Subsidiaries 47% 37% 42% 28% 27% 33% 28% 16% CAP 11% UAC Foods Gross Margins UPDC CAP 11% UAC Foods EBIT Margins UPDC

29 CAPEX (N Million) CAP UAC Foods UPDC Grand Cereal Capex comprises installation of new plant in Onitsha and expansion of Fish Feed Plant in Jos. In addition, UPDC expenditure on inventory builds was N9.7 billion

30 2 3 Q FINANCIAL HIGHLIGHTS

31 Summary of Financial Performance

32 Summary of Financial Position

33 Summary of Cash Flows

34 Capital Structure Total Debt (N Billion) Total Equity (N Billion) Total Debt up N9.3 Billion due to increased financing activity in Grand Cereals (Debt/Equity ratio 0.5x vs. 0.64x). UPDC REIT proceeds to curtail this.

35 Improving Returns ROE (Annualized) ROA (Annualized) 8% 6% % 4% ROE and ROA record improvements due to growth in profitability over the review period

36 Margins by Subsidiaries 31% PBT margins impacted by interest burden in Grand Cereals and UPDC 29% 24% 23% 21% 11% 11% 14% 8% 4% CAP UAC Foods EBIT Margins UPDC CAP UAC Foods PBT Margins UPDC

37 2 3 NEW INITIATIVES

38 SAP ERP IMPLEMENTATION

40 Contents 1 Overview of the business in 2012 Larry Ettah GMD/CEO 2 performance review (FY 2012 & Q1 2013) Abdul Bello CFO 2 Update on strategic thrusts Joe Dada ED Corp. Services outlook Larry Ettah GMD/CEO 3 4 3

41 Acquisition of Livestock Feeds Plc Transaction consummated via Secondary Market trades (11%) and Primary Market Offer (40%)

42 M&A Update Grand Cereals Rights Issue of N3 Billion fully subscribed; Debt exposure reduced

44 Contents 1 Overview of the business in 2012 Larry Ettah GMD/CEO 2 performance review (FY 2012 & Q1 2013) Abdul Bello CFO 2 Update on strategic thrusts Joe Dada ED Corp. Services outlook Larry Ettah GMD/CEO 3 4 3

45 2013 Forecasts FY 2013 FORECAST (as submitted to the NSE) Turnover N81.9 Billion PBT N12.2 Billion PAT N8.6 Billion

46 2013 Key Priorities Conclude on-going M&A activities by Q2

48 THANK YOU!

UAC OF NIGERIA PLC UAC OF NIGERIA PLC UAC OF NIGERIA PLC

UAC OF NIGERIA PLC UAC OF NIGERIA PLC UAC OF NIGERIA PLC H1 9M 2014 2013 Results Results Presentation Important Notice This presentation contains or will contain forward-looking statements which reflect