Zambian Breweries Plc.
Investor conference call
10 July 2014
Full year results
Twelve months ended 31 March 2014
© SABMiller 2014
Forward Looking Statements
This presentation includes ‘forward-looking statements’ with respect to certai...
© SABMiller 2014
Agenda
1. Welcome
2. Trading and business environment
3. Historical brand performance
4. Market share
5. ...
© SABMiller 2014
Trading and business environment
 Economic conditions and regulatory environment - generally good
 Remo...
© SABMiller 2014
Strategic review
 Investment in systems and processes to enhance our operational efficiency
 Increase i...
© SABMiller 2014
Historical brand performance
Zambian Breweries Plc. 6
0
100
200
300
400
500
600
700
800
F'10 F'11 F'12 F'...
© SABMiller 2014
Historical market share F’14
Zambian Breweries Plc. 7
ZBL, 91%
Other, 9%
Clear Beer Market share
ZBL, 59%...
© SABMiller 2014
Proposed investments - Maltings
Zambian Breweries Plc. 8
Total investment – US$ 37.4m
© SABMiller 2014
Managing sustainable development
 Our main Corporate Governance activities
for F’14 include:
Combating ...
Financial Highlights
© SABMiller 2014
Historical operating profit performance
Zambian Breweries Plc. 11
23.2
11.0
28.6
34.6
44.7
54.0
0
10
20
3...
© SABMiller 2014
Exchange rate
Zambian Breweries Plc. 12
ZMK/ZAR
Daily ZARZMW=R 07/11/2012 - 29/07/2014 (GMT)
Line, ZARZMW...
© SABMiller 2014
Financial highlights (1)
 Strong performance for 2014
 Lager volume growth +6.2% (impact of excise on Q...
© SABMiller 2014
Financial highlights (2)
 Finance costs dropped by 42% and effective tax rate down to 30%
 Profit after...
© SABMiller 2014
Financial performance – 31 March 2014 (1)
Zambian Breweries Plc. 15
US$’ 000 Mar-14 Mar-13 Change %
Repor...
© SABMiller 2014
Financial performance – 31 March 2014 (2)
Zambian Breweries Plc. 16
US$’ 000 Mar-14 Mar-13 Change %
NPR 2...
© SABMiller 2014
Financial performance – 31 March 2014 (3)
Zambian Breweries Plc.. 17
US$’ 000 Mar-14 Mar-13
Cash generate...
© SABMiller 2014
Total tax payments
Zambian Breweries Plc. 18
US$
TAXES PAID F14
Road Tax/Carbon Tax Levies 20,704
Land Ta...
© SABMiller 2014
Total tax payments
Zambian Breweries Plc. 19
F14 TAXES PAID Road Tax/Carbon Tax Levies
Land Tax
Employee ...
© SABMiller 2014
Excise increase impact on 375ml RGB volume sales
(hl’000)
 Volume decline Q4 2014 over Q4 2013 amounts t...
© SABMiller 2014
CAPEX
 Total CAPEX spend at 31 March 2014 amounted to US$ 43m.
 The largest spend items include:
Ndola...
© SABMiller 2014
Key financial ratios (US$ where applicable)
Zambian Breweries Plc. 22
Per Hl Analysis F'09 F'10 F'11 F'12...
© SABMiller 2014
Prospects
 We have confidence in the resilience of our business
 Strategic infrastructure investments w...
© SABMiller 2014
Dividend declaration
ZAMBIAN BREWERIES PLC
Final Dividend
FOR THE YEAR ENDED 31 MARCH 2014
At a Board Mee...
© SABMiller 2014
Thank you
Questions?
Zambian Breweries Plc. 25
National Breweries Plc.
Investor conference call
10 July 2014
Full year results
Twelve months ended 31 March 2014
© SABMiller 2014
Forward Looking Statements
This presentation includes ‘forward-looking statements’ with respect to certai...
© SABMiller 2014
Agenda
1. Welcome
2. Trading and business environment
3. Strategic review
4. Managing sustainable develop...
© SABMiller 2014
Trading and business environment
 Economic conditions and regulatory environment - generally good
 Easi...
© SABMiller 2014
Strategic review
 Investment in systems and processes to enhance our operational
efficiency
 Chibuku Su...
© SABMiller 2014
Proposed investments – New Lusaka Brewery
National Breweries Plc. 31
Total investment – ZMW 29.0m
© SABMiller 2014
Managing sustainable development
 Our main Corporate Governance activities
for F’14 include:
Combating ...
Financial Highlights
© SABMiller 2014
Historical operating profit performance
National Breweries Plc. 34
9.5
10.5
12.0 11.0
10.2
13.3
0.0
2.0
4...
© SABMiller 2014
Exchange rate
National Breweries Plc. 35
ZMK/ZAR
Daily ZARZMW=R 07/11/2012 - 29/07/2014 (GMT)
Line, ZARZM...
© SABMiller 2014
Financial highlights (1)
 Chibuku Carton volume decline -17.8%
 Chibuku Super volume growth +272.3%
 N...
© SABMiller 2014
Financial performance – 31 March 2014 (1)
National Breweries Plc. 37
US$’ 000 Mar-14 Mar-13 Change %
Repo...
© SABMiller 2014
Financial performance – 31 March 2014 (2)
National Breweries Plc. 38
US$’ 000 Mar-14 Mar-13 Change %
NPR ...
© SABMiller 2014
Financial performance – 31 March 2014 (3)
National Breweries Plc. 39
US$’ 000 Mar-14 Mar-13
Cash generate...
© SABMiller 2014
Total tax payments
National Breweries Plc. 40
US$
TAXES PAID F'14
Other Employee Tax - Personal Levy 930
...
© SABMiller 2014
Total tax payments
National Breweries Plc. 41
Other Employee Tax - Personal Levy
Road Tax/Carbon Tax Levi...
© SABMiller 2014
CAPEX
 Total CAPEX spend at 31 March 2014 amounted to
US$ 11m.
 The largest spend items include:
 Lusa...
© SABMiller 2014
Key financial ratios (US$ where applicable)
National Breweries Plc. 43
Per Hl Analysis F'09 F'10 F'11 F'1...
© SABMiller 2014
Prospects
 Cartons remain the backbone of our business
 The environment remains highly competitive
 Pr...
© SABMiller 2014
Dividend declaration
NATIONAL BREWERIES PLC
Final Dividend
At a Board Meeting held on Wednesday, 14th May...
© SABMiller 2014
Thank you
Questions?
National Breweries Plc. 46
Upcoming SlideShare
Loading in …5
×

Zambrew and Natbrew Investor presentation 10 July 2014

1,252 views

Published on

Zambrew and Natbrew Investor presentation 10 July 2014

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

  • Be the first to like this

No Downloads
Views
Total views
1,252
On SlideShare
0
From Embeds
0
Number of Embeds
386
Actions
Shares
0
Downloads
17
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Zambrew and Natbrew Investor presentation 10 July 2014

  1. 1. Zambian Breweries Plc. Investor conference call 10 July 2014 Full year results Twelve months ended 31 March 2014
  2. 2. © SABMiller 2014 Forward Looking Statements This presentation includes ‘forward-looking statements’ with respect to certain of SABMiller plc’s plans, current goals and expectations relating to its future financial condition, performance and results. These statements contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company’s products and services) are forward- looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this document. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The past business and financial performance of SABMiller plc is not to be relied on as an indication of its future performance. All references to “EBITA” in this presentation refer to earnings before interest, tax, amortisation of intangible assets (excluding software) and exceptional items. EBITA also includes the group’s share of associates’ and joint ventures’ EBITA on the same basis. All references to “organic” mean as adjusted to exclude the impact of acquisitions and disposals, while all references to “constant currency” mean as adjusted to exclude the impact of movements in foreign currency exchange rates in the translation of our results. References to “underlying” mean in organic, constant currency. 2 Zambian Breweries Plc
  3. 3. © SABMiller 2014 Agenda 1. Welcome 2. Trading and business environment 3. Historical brand performance 4. Market share 5. Strategic review 6. Managing sustainable development 7. Financial highlights 8. Total tax payments 9. Excise 10. CAPEX 11. Prospects 12. Dividend declaration 3Zambian Breweries Plc.
  4. 4. © SABMiller 2014 Trading and business environment  Economic conditions and regulatory environment - generally good  Removal of Maize and Fuel subsidies in May – drop in disposable income  Easing of government regulations SI 55 and SI 33  Commissioned our new packaging line in Ndola (Half 1)  Exchange rate depreciation in last quarter against the US$ and ZAR  Increase in excise rate by 50% from 40% to 60% Zambian Breweries Plc 4
  5. 5. © SABMiller 2014 Strategic review  Investment in systems and processes to enhance our operational efficiency  Increase in excise tax and subsequent reduction in volume leaves us with excess capacity  Our brands have continued to grow confirming our commitment to quality  Soft drinks performance was impressive in the year  We continued to secure our value chain through local sourcing  The imminent construction of a US$ 37.4m Maltings plant confirms our commitment to this program Zambian Breweries Plc. 5
  6. 6. © SABMiller 2014 Historical brand performance Zambian Breweries Plc. 6 0 100 200 300 400 500 600 700 800 F'10 F'11 F'12 F'13 F'14 Brand performance in Hl'000 Castle Mosi Castle Lite Carling Black Label
  7. 7. © SABMiller 2014 Historical market share F’14 Zambian Breweries Plc. 7 ZBL, 91% Other, 9% Clear Beer Market share ZBL, 59% Other, 42% Soft Drinks Market share
  8. 8. © SABMiller 2014 Proposed investments - Maltings Zambian Breweries Plc. 8 Total investment – US$ 37.4m
  9. 9. © SABMiller 2014 Managing sustainable development  Our main Corporate Governance activities for F’14 include: Combating alcohol abuse – Education and Drink Driving campaign Itawa Springs project in Ndola – total investment US$ 300k in partnership with GIZ Reduction in Water Usage Recycling research and project establishment Fighting Malaria 9Zambian Breweries Plc.
  10. 10. Financial Highlights
  11. 11. © SABMiller 2014 Historical operating profit performance Zambian Breweries Plc. 11 23.2 11.0 28.6 34.6 44.7 54.0 0 10 20 30 40 50 60 F'09 F'10 F'11 F'12 F'13 F'14 Operating profit performance (US$'m)
  12. 12. © SABMiller 2014 Exchange rate Zambian Breweries Plc. 12 ZMK/ZAR Daily ZARZMW=R 07/11/2012 - 29/07/2014 (GMT) Line, ZARZMW=R, Bid(Last) 26/06/2014, 0.5740, +0.0013, (+0.23%) Price ZMW Auto 0.49 0.5 0.51 0.52 0.53 0.54 0.55 0.56 0.57 0.58 0.59 0.6 0.61 0.62 0.63 0.64 0.65 0.66 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 ZMK/USD Daily ZMW= 07/11/2012 - 29/07/2014 (GMT) Line, ZMW=, Bid(Last) 26/06/2014, 6.1050, +0.0350, (+0.58%) Price /USD Auto 5 5.2 5.4 5.6 5.8 6 6.2 6.4 6.6 6.8 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Good positive price variance on imports during the financial Year to Q3 Significant depreciation in the last quarter (13%)
  13. 13. © SABMiller 2014 Financial highlights (1)  Strong performance for 2014  Lager volume growth +6.2% (impact of excise on Q4 year on year -19%)  Soft drinks volume growth +17.2%  Net producers revenue growth +7.0%  Operating profit +20.8%  Above contributing to operating profit margin growth +260bp Zambian Breweries Plc. 13
  14. 14. © SABMiller 2014 Financial highlights (2)  Finance costs dropped by 42% and effective tax rate down to 30%  Profit after tax growth of +57.0% Zambian Breweries Plc. 14
  15. 15. © SABMiller 2014 Financial performance – 31 March 2014 (1) Zambian Breweries Plc. 15 US$’ 000 Mar-14 Mar-13 Change % Reported Net producers revenue (NPR) 236,291 220,811 7.0% Operating profit 53,997 44,704 20.8% Operating profit % NPR 22.9% 20.2% 260bp Sales volumes (Hl'000) Total 2,122 1,922 10.4% Lager 1,262 1,188 6.2% Soft drinks 860 734 17.2%
  16. 16. © SABMiller 2014 Financial performance – 31 March 2014 (2) Zambian Breweries Plc. 16 US$’ 000 Mar-14 Mar-13 Change % NPR 236,291 220,811 7.0% Gross profit 112,256 102,706 9.3% Gross margin (%NR) 47.5% 46.5% 100bp Net operating expenses (58,294) (58,268) 0.0% Exchange gains 34 267 Operating profit 53,997 44,704 20.8% Finance costs (8,303) (14,367) -42.2% Profit before tax 45,694 30,337 50.6% Income tax expense (13,751) (9,987) 37.7% Profit for the year 31,944 20,351 57.0%
  17. 17. © SABMiller 2014 Financial performance – 31 March 2014 (3) Zambian Breweries Plc.. 17 US$’ 000 Mar-14 Mar-13 Cash generated from operating activities 53,413 52,061 Cash generated from investing activities (40,619) (50,008) Cash generated from financing activities (20,393) (20,599) Net decrease in cash and cash equivalents (7,599) (18,546) Cash at start of the year 707 22,681 Exchange differences (168) (3,384) Cash and cash equivalents at end of the year (7,060) 751
  18. 18. © SABMiller 2014 Total tax payments Zambian Breweries Plc. 18 US$ TAXES PAID F14 Road Tax/Carbon Tax Levies 20,704 Land Tax 69,535 Employee social security paid by the co. (NAPSA) 1,206,928 Corporate Tax 2,537,119 Withholding Tax - Rent, Royalties, Consultancy 2,262,220 Employee Income Tax/Personal Levy 5,183,456 Customs Duty 12,422,897 Net VAT/Sales Tax paid to Revenue 36,957,273 Excise Duty - Beer 60,755,615 TOTAL 121,415,747
  19. 19. © SABMiller 2014 Total tax payments Zambian Breweries Plc. 19 F14 TAXES PAID Road Tax/Carbon Tax Levies Land Tax Employee social security paid by the co. (NAPSA) Corporate Tax Withholding Tax - Rent, Royalties, Consultancy Employee Income Tax/Personal Levy Customs Duty Net VAT/Sales Tax paid to Revenue Excise Duty - Beer
  20. 20. © SABMiller 2014 Excise increase impact on 375ml RGB volume sales (hl’000)  Volume decline Q4 2014 over Q4 2013 amounts to -19%  This volume decline is projected to negatively impact on government tax revenues in the F15 financial year. Zambian Breweries Plc. 20 79 68 91 84 99 85 96 106 111 97 98 112 72 56 71 40 50 60 70 80 90 100 110 120 Jan '13 Feb '13 Mar '13 Apr '13 May '13 Jun '13 Jul '13 Aug '13 Sep '13 Oct '13 Nov '13 Dec '13 Jan '14 Feb '14 Mar '14
  21. 21. © SABMiller 2014 CAPEX  Total CAPEX spend at 31 March 2014 amounted to US$ 43m.  The largest spend items include: Ndola upgrade US$ 15.7m Lusaka and Ndola manufacturing upgrades US$ 6.7m Distribution US$ 2.8m Containers (Bottles and Crates) US$ 13.8m  The main CAPEX for the financial year ended 31 March 2015 incudes the Maltings plant - US$ 16.9m Zambian Breweries Plc. 21
  22. 22. © SABMiller 2014 Key financial ratios (US$ where applicable) Zambian Breweries Plc. 22 Per Hl Analysis F'09 F'10 F'11 F'12 F'13 F'14 NPR/Hl 106.18 101.71 110.40 113.47 114.88 111.37 Gross profit/Hl 50.51 41.82 51.72 50.71 53.44 52.91 Fixed costs/Hl * 35.06 33.51 30.41 29.36 28.30 29.66 Operating profit/Hl 20.36 8.76 19.43 21.35 23.26 25.45 Ratios Operating profit margin 19.2% 8.6% 17.6% 18.8% 20.2% 22.9% Gross profit Margin 47.6% 41.1% 46.8% 44.7% 46.5% 47.5% Interest cover ratio (times) 4.8 1.1 2.0 3.3 3.1 6.5 Effective tax rate 40.0% 118.8% 32.9% 40.8% 32.9% 30.1% Return on assets 8.7% -0.1% 4.5% 5.3% 6.9% 10.9% Return on equity 29.3% -0.4% 18.7% 11.5% 14.3% 20.7% Return on Capital employed 18.5% 5.2% 13.6% 12.9% 15.2% 18.5% Fixed Assets turnover ratio 1.3 0.8 1.0 1.0 1.0 1.1 Earning per share 0.03 (0.00) 0.02 0.03 0.04 0.06 Balancesheet ratios Current ratio 0.46 0.50 0.93 0.68 1.20 1.19 Debt ratio 70% 80% 76% 54% 52% 47% Debt - Equity ratio 2.4 4.1 3.2 1.2 1.1 0.9 Capitalisation ratio 26% 63% 67% 17% 38% 31% *Fixed costs as per internal reporting
  23. 23. © SABMiller 2014 Prospects  We have confidence in the resilience of our business  Strategic infrastructure investments will go ahead on the premise of future growth  Strong performance of the agricultural and construction sector will be key to increasing wealth redistribution and the opening up of the rural sectors  We will continue to increase our geographic reach to capture this growth  The exchange rate depreciation and interest rate hikes will have a significant impact on our business  Faced with the excise tax increase, declining beer volumes and excess capacity, we need to implement measures to safeguard profitability and business sustainability. Zambian Breweries Plc. 23
  24. 24. © SABMiller 2014 Dividend declaration ZAMBIAN BREWERIES PLC Final Dividend FOR THE YEAR ENDED 31 MARCH 2014 At a Board Meeting held on Wednesday, 14th May 2014, the Board resolved to recommend a final dividend payment of 40% for the year ended 31 March 2014. The payment of the dividend of K0.128 per share was approved at the AGM on 1 July 2014. Zambian Breweries Plc. 24
  25. 25. © SABMiller 2014 Thank you Questions? Zambian Breweries Plc. 25
  26. 26. National Breweries Plc. Investor conference call 10 July 2014 Full year results Twelve months ended 31 March 2014
  27. 27. © SABMiller 2014 Forward Looking Statements This presentation includes ‘forward-looking statements’ with respect to certain of SABMiller plc’s plans, current goals and expectations relating to its future financial condition, performance and results. These statements contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company’s products and services) are forward- looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this document. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The past business and financial performance of SABMiller plc is not to be relied on as an indication of its future performance. All references to “EBITA” in this presentation refer to earnings before interest, tax, amortisation of intangible assets (excluding software) and exceptional items. EBITA also includes the group’s share of associates’ and joint ventures’ EBITA on the same basis. All references to “organic” mean as adjusted to exclude the impact of acquisitions and disposals, while all references to “constant currency” mean as adjusted to exclude the impact of movements in foreign currency exchange rates in the translation of our results. References to “underlying” mean in organic, constant currency. 27 National Breweries Plc
  28. 28. © SABMiller 2014 Agenda 1. Welcome 2. Trading and business environment 3. Strategic review 4. Managing sustainable development 5. Financial highlights 6. Total tax payments 7. CAPEX 8. Prospects 9. Dividend declaration 28National Breweries Plc.
  29. 29. © SABMiller 2014 Trading and business environment  Economic conditions and regulatory environment - generally good  Easing of government regulations SI 55 and SI 33  Kitwe Chibuku Super production in Kitwe fully up and running  Removal of Maize and Fuel subsidies in May – drop in disposable income  Production challenges in the Kitwe brewery impacted Carton volumes  Competition from the bulk sector remained significant despite legislation National Breweries Plc. 29
  30. 30. © SABMiller 2014 Strategic review  Investment in systems and processes to enhance our operational efficiency  Chibuku Super PET and Returnable Bottle category expansion,  Investment of US$ 29.1m in the new Lusaka Brewery off the strong growth of Chibuku Super  Doubling of production to 2.1 million hectolitres from 1 million in Lusaka National Breweries Plc. 30
  31. 31. © SABMiller 2014 Proposed investments – New Lusaka Brewery National Breweries Plc. 31 Total investment – ZMW 29.0m
  32. 32. © SABMiller 2014 Managing sustainable development  Our main Corporate Governance activities for F’14 include: Combating alcohol abuse – Education and Drink Driving campaign Reduction in Water Usage. Recycling research and project establishment Fighting Malaria 32National Breweries Plc.
  33. 33. Financial Highlights
  34. 34. © SABMiller 2014 Historical operating profit performance National Breweries Plc. 34 9.5 10.5 12.0 11.0 10.2 13.3 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2009 2010 2011 2012 2013 2014 Operating profit performance (US$'m)
  35. 35. © SABMiller 2014 Exchange rate National Breweries Plc. 35 ZMK/ZAR Daily ZARZMW=R 07/11/2012 - 29/07/2014 (GMT) Line, ZARZMW=R, Bid(Last) 26/06/2014, 0.5740, +0.0013, (+0.23%) Price ZMW Auto 0.49 0.5 0.51 0.52 0.53 0.54 0.55 0.56 0.57 0.58 0.59 0.6 0.61 0.62 0.63 0.64 0.65 0.66 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 ZMK/USD Daily ZMW= 07/11/2012 - 29/07/2014 (GMT) Line, ZMW=, Bid(Last) 26/06/2014, 6.1050, +0.0350, (+0.58%) Price /USD Auto 5 5.2 5.4 5.6 5.8 6 6.2 6.4 6.6 6.8 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Good positive price variance on imports during the financial Year to Q3 Significant depreciation in the last quarter (13%)
  36. 36. © SABMiller 2014 Financial highlights (1)  Chibuku Carton volume decline -17.8%  Chibuku Super volume growth +272.3%  Net producers revenue growth +9.7% driven by positive mix towards Super  Operating profit +30.7% driven by positive margin mix towards Super  Above contributing to operating profit margin growth +300bp  Profit after tax growth of +34.6% National Breweries Plc. 36
  37. 37. © SABMiller 2014 Financial performance – 31 March 2014 (1) National Breweries Plc. 37 US$’ 000 Mar-14 Mar-13 Change % Reported Net revenue (NPR) 71,653 65,300 9.7% Operating profit 13,298 10,178 30.7% Operating profit % NPR 18.6% 15.6% 300bp Sales volumes (Hl'000) Total 2,179 2,321 -6.1% Chibuku Carton 1,831 2,227 -17.8% Chibuku Super 348 93 272.3%
  38. 38. © SABMiller 2014 Financial performance – 31 March 2014 (2) National Breweries Plc. 38 US$’ 000 Mar-14 Mar-13 Change % NPR 71,653 65,300 9.7% Gross profit 24,862 20,675 20.2% Gross margin (%NPR) 34.7% 31.7% 300bp Net operating expenses (11,500) (10,348) 11.1% Exchange losses (64) (149) Operating profit 13,298 10,178 30.7% Finance income/(costs) 98 (42) Profit before tax 13,396 10,136 32.2% Income tax expense (4,945) (3,855) 28.3% Profit for the year 8,451 6,280 34.6%
  39. 39. © SABMiller 2014 Financial performance – 31 March 2014 (3) National Breweries Plc. 39 US$’ 000 Mar-14 Mar-13 Cash generated from operating activities 13,397 8,297 Cash generated from investing activities (11,217) (7,434) Cash generated from financing activities - (174) Net increase in cash and cash equivalents 2,180 689 Cash at start of the year 2,359 1,768 Exchange differences 134 51 Cash and cash equivalents at end of the year 4,672 2,508
  40. 40. © SABMiller 2014 Total tax payments National Breweries Plc. 40 US$ TAXES PAID F'14 Other Employee Tax - Personal Levy 930 Road Tax/Carbon Tax Levis 19,337 Council Rates & Levis 19,571 Employee Income Tax (PAYE) 209,788 Withholding Tax - Rent, Royalties, Consultancy 373,537 Employee social security (NAPSA) 398,380 Corporate Tax 1,828,464 Excise Duty 5,510,552 VAT 9,792,542 TOTAL 18,153,101
  41. 41. © SABMiller 2014 Total tax payments National Breweries Plc. 41 Other Employee Tax - Personal Levy Road Tax/Carbon Tax Levis Council Rates & Levis Employee Income Tax (PAYE) Withholding Tax - Rent, Royalties, Consultancy Employee social security (NAPSA) Corporate Tax Excise Duty VAT F14 TAXES PAID
  42. 42. © SABMiller 2014 CAPEX  Total CAPEX spend at 31 March 2014 amounted to US$ 11m.  The largest spend items include:  Lusaka Brewery upgrade US$ 9.1m  Distribution US$ 1.0m  The main CAPEX for the financial year ended 31 March 2015 includes the Lusaka Brewery upgrade of US$ 15.9m National Breweries Plc. 42
  43. 43. © SABMiller 2014 Key financial ratios (US$ where applicable) National Breweries Plc. 43 Per Hl Analysis F'09 F'10 F'11 F'12 F'13 F'14 NPR/Hl 27.38 27.59 28.56 28.72 28.14 32.88 Gross profit/Hl 12.97 13.13 11.27 11.17 8.91 11.41 Fixed costs/Hl* 6.21 6.42 6.51 7.93 6.03 7.03 Operating profit/Hl 5.56 6.12 6.32 6.36 4.39 6.10 Ratios Operating profit margin 20.3% 22.2% 22.1% 22.1% 15.6% 18.6% Gross profit Margin 47.4% 47.6% 39.5% 38.9% 31.7% 34.7% Interest cover ratio (times) 49.3 53.6 65.8 113.6 109.8 372.7 Effective tax rate 36.5% 37.9% 35.6% 35.6% 38.0% 36.9% Return on assets 56.4% 40.7% 44.8% 46.6% 25.1% 22.9% Return on equity 169.9% 111.4% 120.1% 126.2% 56.4% 48.7% Return on Capital employed 90.7% 66.8% 69.4% 72.9% 40.6% 36.0% Fixed Assets turnover ratio 8.4 6.9 7.2 5.9 4.7 3.5 Earning per share 0.09 0.10 0.12 0.11 0.10 0.13 Balancesheet ratios Current ratio 0.79 1.02 1.03 0.80 0.95 0.99 Debt ratio 67% 63% 63% 63% 56% 53% Debt - Equity ratio 2.0 1.7 1.7 1.7 1.2 1.1 Capitalisation ratio 19% 17% 17% 18% 16% 14% *Fixed costs as per internal reporting
  44. 44. © SABMiller 2014 Prospects  Cartons remain the backbone of our business  The environment remains highly competitive  Pressures on disposable incomes early in F15 are expected to impact sales  Recent interest rate hikes will have a significant impact on our business  Step change in the business with the introduction of the new Lusaka Brewery and growth in Super  Continued improvement in product mix towards Super and regional growth driving margin growth. National Breweries Plc. 44
  45. 45. © SABMiller 2014 Dividend declaration NATIONAL BREWERIES PLC Final Dividend At a Board Meeting held on Wednesday, 14th May 2014, the Board resolved not to recommend a dividend. Given the significant capital expenditure programs underway and proposed for the next financial year, the Board agreed not to recommend a dividend. This was approved at the AGM on 1 July, 2014. National Breweries Plc. 45
  46. 46. © SABMiller 2014 Thank you Questions? National Breweries Plc. 46

×