Seni Adetu, Managing Director /CEO
Lisa Nichols, Finance/Strategy Director
Sesan Sobowale, Corporate Relations Director
AGENDA
ITEM PRESENTER SLIDE
Introduction Seni Adetu -
Company Overview Seni Adetu 4
Market and Performance Overview Seni A...
COMPANY OVERVIEW
OUR COMPANY
Strong portfolio diversity including alcoholic and non-alcoholic beverages covering a wide
range of consumer s...
OUR BRANDS
We have a diverse portfolio of brands that are adored by Nigerian
consumers. These include:
STOUT RTD NON-ALCOH...
OUR AMBITION
Guinness Nigeria Plc is the best performing, most
trusted and respected consumer products company in
Nigeria
...
MARKET & PERFORMANCE OVERVIEW
Opportunities:
• Rapid growth of emerging middle class: (20m living
on $2-4per day)
• Positive economic fundamentals in th...
KEY DRIVERS OF PERFORMANCE
Market softness:
De-prioritization of beer by consumers, declining discretionary income , down ...
FINANCIAL PERFORMANCE
GN PLC F13 RESULTS – COMPREHENSIVE INCOME
Q4 F13 Growth FY F13 Growth
Nbillion % Nbillion %
Gross Revenue 36.5 7% 131.4 4%...
GN PLC F13 RESULTS – COMPREHENSIVE INCOME
Q4 F13 Growth FY F13 Growth
Nbillion % Nbillion %
Operating Profit 6.8 -9% 20.6 ...
DRIVERS OF PROFIT BEFORE TAX
1
17.0
0.1
6.9
20.4
Admin
costs
Price Mktg &
distr.
-1.4
Volume
-0.9
-0.8
-5.1
2012
PBT
CoGS ...
GN PLC F13 RESULTS - FINANCIAL POSITION
FY F13 FY F12 Movt
Nbillion Nbillion Nbillion
Non-Current Assets 88.8 77.2 11.6
In...
HIGHLIGHTS OF F13
HIGHLIGHTS OF F13
Brands Innovation
Route to
Consumer
Supply Reputation People
HIGHLIGHTS - BRANDS
Guinness Harp & Dubic Malta Guinness Smirnoff Ice
 EPL broadcast Sponsorship
 Fly With The Eagles Ca...
H1
Malta Guinness Low Sugar
 Launched nationally in May F12
 F13 saw weighted distribution grow by
double digits
Snapp
...
Cold & Events GDC Branding
 Investments in project cold
 Special events supporting
social events driving
convenience & v...
HIGHLIGHTS - SUPPLY
21
Gas / Diesel Generator
and Boilers
CO₂ Plant and
Loading capacity
Quality & Safety
 Harp Lager Beer & Malta Guinness
won the 2012 Monde Gold Quality
Award
 Zero LTA – award by Nigerian
E...
23
 Dedicated engagement resources working with teams to resolve issues
 Significant progress in employee engagement wit...
STRATEGIC PRIORITIES
Strengthen and accelerate our premium core brands
Innovate at scale to meet new consumer needs
Build ...
CONCLUSION
2
• In F13 we delivered a 5% growth in revenue in a challenging market with constrained consumer
discretionary ...
Guinness Nigeria Plc FY 2013 financial results presentation
Guinness Nigeria Plc FY 2013 financial results presentation
Guinness Nigeria Plc FY 2013 financial results presentation
Upcoming SlideShare
Loading in...5
×

Guinness Nigeria Plc FY 2013 financial results presentation

219

Published on

Guinness Nigeria Plc FY 2013 financial results presentation

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
219
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Guinness Nigeria Plc FY 2013 financial results presentation

  1. 1. Seni Adetu, Managing Director /CEO Lisa Nichols, Finance/Strategy Director Sesan Sobowale, Corporate Relations Director
  2. 2. AGENDA ITEM PRESENTER SLIDE Introduction Seni Adetu - Company Overview Seni Adetu 4 Market and Performance Overview Seni Adetu 8 Financial Performance Lisa Nichols 11 Highlights of the year Seni Adetu 16 Strategic priorities Seni Adetu 24 Conclusions Seni Adetu 26 Q&A Sesan Sobowale 28
  3. 3. COMPANY OVERVIEW
  4. 4. OUR COMPANY Strong portfolio diversity including alcoholic and non-alcoholic beverages covering a wide range of consumer segments and choices Strong values: Performance culture, developing talent, positively impacting the communities in which we operate, strong governance and ethical standards Commitment to significant investment to deliver long-term growth • Major investments in capacity expansion • Almost doubled sales in 4years • Largest Guinness market in the world in net sales Guinness Nigeria is a part of Diageo – the world’s foremost premium alcoholic drinks company. We have been in Nigeria since 1962 with a strong pedigree operating from four sites - 2 in Lagos (Ogba & Ikeja), Benin and Aba.
  5. 5. OUR BRANDS We have a diverse portfolio of brands that are adored by Nigerian consumers. These include: STOUT RTD NON-ALCOHOLICLAGER - Guinness Foreign Extra Stout - Guinness Extra Smooth - Harp Lager - Dubic Lager - Satzenbrau - Smirnoff Ice - Snapp - Malta Guinness - Malta Guinness Low Sugar - Top Malt
  6. 6. OUR AMBITION Guinness Nigeria Plc is the best performing, most trusted and respected consumer products company in Nigeria Employer of Choice Superior Total Shareholder Returns Most reputable in the Community
  7. 7. MARKET & PERFORMANCE OVERVIEW
  8. 8. Opportunities: • Rapid growth of emerging middle class: (20m living on $2-4per day) • Positive economic fundamentals in the medium term • Election in 2015 likely to encourage spending • Power sector privatisation to improve energy supply Economic indicators: • GDP has been growing and averaging 6% - 8% in past two years • Nigeria to remain in top quartile of GDP growth from 2011-2016 • Inflation Rate averaging 10% Y.O.Y Challenges: • Pressured Consumer Discretionary Income leading to re-prioritization • Declining government revenue due to lower output • Security challenges especially in the Northern parts of the country Source: Euromonitor International – world Economic outlook ; Nigeria Bureau of Statistics
  9. 9. KEY DRIVERS OF PERFORMANCE Market softness: De-prioritization of beer by consumers, declining discretionary income , down trading leading to faster growth of value brands, government spending behind plan, Malt market declining at a lower rate RtC competitiveness : Invested in additional sales force to improve outlet coverage, GDCs deployed to over 200 areas in Nigeria Investment in capacity : Flexibility in meeting changing consumer trends, channel is still logistically expensive to service, Increased interest cost Representation in large/growing segments: Innovation of value brands, RTD’s exploitation , Low sugar malt innovation Performance Overview: Growth %  Net Revenue 5%  Operating Profit – 6%  Profit After Tax -17%
  10. 10. FINANCIAL PERFORMANCE
  11. 11. GN PLC F13 RESULTS – COMPREHENSIVE INCOME Q4 F13 Growth FY F13 Growth Nbillion % Nbillion % Gross Revenue 36.5 7% 131.4 4% Net Revenue 34.0 8% 122.5 5% Cost of Sales (18.2) 13% (66.4) 8% Gross Profit 15.8 3% 56.1 2% Marketing & Distr. (6.6) 18% (26.0) 6% Admin Costs (2.9) 28% (10.3) 9%
  12. 12. GN PLC F13 RESULTS – COMPREHENSIVE INCOME Q4 F13 Growth FY F13 Growth Nbillion % Nbillion % Operating Profit 6.8 -9% 20.6 -6% Financing charges (1.1) 52% (3.6) 138% PBT 5.8 -15% 17.0 -17% Tax (1.3) -21% (5.1) -17% PAT 4.5 -13% 11.9 -17% K K EPS 299 -14% 793 -18%
  13. 13. DRIVERS OF PROFIT BEFORE TAX 1 17.0 0.1 6.9 20.4 Admin costs Price Mktg & distr. -1.4 Volume -0.9 -0.8 -5.1 2012 PBT CoGS 2013 PBT -2.1 FinancingOther income Drivers of PBT decline F13 vs. LY (Nbillion) Capacity expansion depreciation Expansion investment
  14. 14. GN PLC F13 RESULTS - FINANCIAL POSITION FY F13 FY F12 Movt Nbillion Nbillion Nbillion Non-Current Assets 88.8 77.2 11.6 Inventories 12.4 13.2 (0.8) Receivables 16.6 10.8 5.8 Cash 3.2 4.8 (1.6) Total Assets 121.1 106.0 15.1 Current Liabilities (51.3) (45.2) (6.1) Non-Current Liabilities (23.7) (22.2) (1.5) Equity (46.0) (38.6) (7.4) Net Equity & Liabilities (121.1) (106.0) (15.1)
  15. 15. HIGHLIGHTS OF F13
  16. 16. HIGHLIGHTS OF F13 Brands Innovation Route to Consumer Supply Reputation People
  17. 17. HIGHLIGHTS - BRANDS Guinness Harp & Dubic Malta Guinness Smirnoff Ice  EPL broadcast Sponsorship  Fly With The Eagles Campaign  AFCON Campaign and Jersey Tour  Made of More campaign  Partnership with football  Improved media and OOH visibility  Harp rhythm unplugged  ‘Smirnoff Midnight Circus’ events  Distribution drives  Promoting healthier living  Competitive pricing  Distribution drive and consumer experience 18
  18. 18. H1 Malta Guinness Low Sugar  Launched nationally in May F12  F13 saw weighted distribution grow by double digits Snapp  Launched in Lagos and 4 other cities – Abuja, Benin, Port Harcourt and Calabar  Snapp sleek cans launched in Dec 2012 H2 Snapp  Rolled out nationally  Refreshed advertising Dubic • New green bottle • Regional expansion Top Malt • Pack redesign for national re-launch 19 HIGHLIGHTS - INNOVATION
  19. 19. Cold & Events GDC Branding  Investments in project cold  Special events supporting social events driving convenience & visibility  Guinness Distribution Centres (GDC) driving rural re- distribution  Roll out progressing well  Distributor warehouse branding • Flagship outlet branding Sales coverage  Additional sales vans  Maximised opportunity in Key Account.  Increased visibility via Kitting of Bar men 20 HIGHLIGHTS - ROUTE TO CONSUMER
  20. 20. HIGHLIGHTS - SUPPLY 21 Gas / Diesel Generator and Boilers CO₂ Plant and Loading capacity
  21. 21. Quality & Safety  Harp Lager Beer & Malta Guinness won the 2012 Monde Gold Quality Award  Zero LTA – award by Nigerian Employers Consultative Association (NECA) and the Nigerian Social Insurance Trust Fund (NSITF). Responsible Drinking & Community Investments •Project DIY: skills training for children's in the orphanages. •The Social Enterprise Report Awards (SERA) for ‘Best Company in Labour Practice’ •World AIDS campaign •Motor Park Health and Safety Programme with Lagos State •Won ‘Best Private Sector Company Supporting Water Sector (Min of Water Res) •WOL in Ago Ibami and Oza Nogogo •Relief materials to flood victims in Edo State. •Technical education scholarships to students OUR WORK IN THE COMMUNITY
  22. 22. 23  Dedicated engagement resources working with teams to resolve issues  Significant progress in employee engagement with improved communications and increased leadership team engagements  Development / career plans and moves are also key to engagement Capability Talent Development Employee Engagement •We have secured more local leaders externally to strengthen our leadership pipeline •We have made internal movements and promotions to fill vacancies created to support our growth ambitions  Gender diversity of leadership population improving  Introduction of an in-house sales academy to upscale our sales capability  Vibrant employee awards scheme HIGHLIGHTS – PEOPLE Afeez AjibowuEyitemi Taire Kingsley Imade Chizoba Ojielo Innocent Nwaononiwu Patrick Awotwi
  23. 23. STRATEGIC PRIORITIES Strengthen and accelerate our premium core brands Innovate at scale to meet new consumer needs Build and then constantly extend our advantage in Route to Consumer (RtC) Drive out cost to invest in growth Guarantee our plans with the right people and capability
  24. 24. CONCLUSION 2 • In F13 we delivered a 5% growth in revenue in a challenging market with constrained consumer discretionary income, security concerns, highly competitive RtC and increased competition • The industry has experienced a decline in the last c.2years but is expected to rebound in the near to medium term in line with the positive economic fundamentals • We have enhanced our ability to compete favorably against competition with our increased capacity, continued development of RtC channel, accelerated investment behind our brands and a great talent pool • Reasons to believe o Quality of our innovation o A blend of experts and local senior managers o Enhancement of our RtC competitiveness o Our partnership with Diageo gives us access to expertise in delivering our future ambition

×