WELCOME AND INTRODUCTION Pearson Gowero 1. FINANCIAL RESULTS Matts Valela 2. BUSINESS REVIEW Pearson Gowero 3. DISCUSSION/ QUESTIONS All 4. REFRESHMENTS All 5.
Completed all major capital programmes - $83m. • Returnable Glass injection to the new calabash bottle. • Introduced non-returnable glass across the entire beer • portfolio. Successfully launched longer shelf-life Chibuku in PET. • Localised Maheu production. • Achieved an improved market supply position across all • beverages. Achieved significant improvement in productivity and cost • management . Negative impact of excise increase on lager beer. •
1. FINANCIAL HIGHLIGHTS 2. FINANCIAL STATEMENTS
LAGER • Grew by 4% SBS • Grew by 9% CHIBUKU • Declined by 8% MAHEU • Grew by 42%
LAGER • Up 8% to $352 million SBS • Up 14% to $231 million CHIBUKU • Up 15% to $118 million MAHEU • Up 50% to $11 million
Revenue (Gross Sales $740,2m) Up 14% to $631,3m EBIT Up 37% to $135,0m Operating Margin % Up from 20,48% to 24,73% EBIDTA Up 36% to $161,5m ATTRIBUTABLE INCOME Up 39% to $102,5m EPS Up 36% to 8,49c Final Dividend Up 78% to 2,23c Total Dividend ($41,3m) Up 63% to 3,40c
REVENUE - $m 700 631 555 600 500 408 400 281 300 200 100 0 F10 F11 F12 F13
EBIT - $m 160 135 140 120 98 100 80 68 60 39 40 20 0 F10 F11 F12 F13
OPERATING MARGIN % 30 24.73 25 20.48 19.53 20 15.3 15 10 5 0 F10 F11 F12 F13
EBITDA - $m 180 162 160 140 119 120 100 82 80 49 60 40 20 0 F10 F11 F12 F13
Category Actual Volume % Growth on 000hl Prior Year 1. BEVERAGES (HLS 000) 1.1 Clear Beer 2 060 4 1.2 Sorghum Beer 3 080 (8) 1.3 Sparkling Beverages 1 615 9 1.4 Maheu 132 42 Total Excluding Associates 6 887 0 2. Plastic Tonnages 9 451 27 3. Malt Tonnages 35 834 3
MARCH 2013 MARCH 2012 US$000’s US$000’s REVENUE 631 276 554 767 Operating Income 134 989 98 288 Net Finance expense (574) (2 650) Gain on Acquisition of Associates - 1 930 Associates – Share of Profit 2 458 1 725 PROFIT BEFORE TAX 136 873 99 293 Taxation (32 750) (24 087) TOTAL COMPREHENSIVE INCOME 104 123 75 206
2013 2012 US$000’s US$000’s Profit for the year attributable to: Owners of the parent 102 472 73 747 Non-controlling 1 651 1 459 interests 104 123 75 206
MARCH MARCH 2013 2012 From Operations Normal EPS – Cents 8,49 6,22 Fully Diluted EPS - Cents 8,42 6,03 Dividend per share - Cents 3,40 2,08
2013 2012 ASSETS US$000’s US$000’s Non-current assets Property, plant and equipment 319 241 268 470 Investments, loans and trademarks 30 598 28 133 TOTAL NON-CURRENT ASSETS 349 839 296 603 CURRENT ASSETS Inventories 93 012 77 620 Trade and other receivables 43 999 37 345 Cash and cash equivalents 75 088 55 578 TOTAL CURRENT ASSETS 212 099 170 543 TOTAL ASSETS 561 938 467 146
2013 2012 EQUITY AND LIABILITIES US$000’s US$000’s Share Capital 12 230 11 927 Share Premium 24 049 19 553 Reserves 276 921 217 559 Dividend Payable 27 270 14 901 Non-controlling Interests 6 780 5 129 Shareholder’s equity 347 250 269 069 Long- term borrowings 60 000 60 000 Deferred taxation 30 740 27 247 90 740 87 247 CURRENT LIABILITIES Short-term borrowings 18 605 21 381 Interest free liabilities 105 343 89 449 TOTAL CURRENT LIABILITIES 123 948 110 830 TOTAL EQUITY AND LIABILITES 561 938 467 146
2013 2012 US$000’s US$000’s Cash flow from 165 112 121 391 operations Net cash invested (83 336) (77 137) Net funding (3 517) (26 878)
Shares in Issue as at 31 March 1 192 105 715 2012 Share Options Exercised 35 257 100 Share buyback (4 480 980) Shares in Issue at 31 March 2013 1 222 881 835
70% 63% 60% 50% 37% 40% 30% 20% 14% 10% 0% 0% Volume Revenue Ebit Dividend Target to improve Total Shareholder Return as measured by: - Revenue Growth - Margins - Cash
1. Volume Review by Beverage category 2. Beverage Mix 3. Supply Chain/Enterprise Development 4. Associates 5. Capacity 6. The Future
HLS 000 2500 2 060 1 981 2000 1 608 1500 1 148 1000 538 500 0 F09 F10 F11 F12 F13
HLS 000 2000 1 615 1 480 1500 1 175 1000 770 500 308 0 F09 F10 F11 F12 F13
HLS 000 4000 3 354 3500 3 114 3 080 2 908 3000 2500 2000 1 673 1500 1000 500 0 F09 F10 F11 F12 F13
HLS 000 132 140 120 93 100 89 80 60 40 20 - F11 F12 F13
9 451 10000 8000 7 196 5 796 6000 4 550 4000 1 815 2000 0 F09 F10 F11 F12 F13
Mash Central Mat North 5% 2% Mat South Manicaland 2% 5% Mash East 7% Harare 42% Masvingo 8% Mash West 9% Midlands Bulawayo 10% 10%
Mat South Mat North 3% Mash East 2% 4% Mash Central 4% Mash West 9% Harare 46% Masvingo 9% Midlands 11% Bulawayo 12%
Mat South 2% Bulawayo Mat North Manicaland 3% 5% 5% Mash Central Harare 7% 21% Mash East 9% Mash West 17% Masvingo 15% Midlands 16%
� Volume performance reflects slowing GDP growth rate. � Soft drinks growth driven by increased investment in PET and glass. � Sorghum volume affected by input cost induced pricing and poor agricultural performance in 2012. � The Midlands and Mashonaland East showing faster growth than other provinces – mining generating incomes. � Localisation of Maheu production drove volume performance. � Clear beer affected by excise and retail price increase from December.
F12 F13 22% 29% 24% 30% 49% 46% Lager Lager Sorghum Sorghum SB's SB's
F12 F13 37% 40% 63% 60% Lager Lager Sorghum Sorghum
2000 18.4% 15.6% 1500 Premium 1000 81.6% 84.4% Main Stream 500 0 F12 F13
1800 1600 31.1% 1400 28.4% 1200 1000 Convenience pack 800 RGB 68.9% 600 71.6% 400 200 0 F12 F13
� Revenue and margin driven by premiumisation in lager beer and soft drinks and price correction in Chibuku � Maintained balance between mainstream and premium category to avoid cannibalisation. � Maintained focus on economy segment with Eagle and Chibuku.
• Focus on local sourcing – Price/Quality • Barley – Improved yields • Maize – maximise local purchases by brewery • Other Inputs – stable supply CHALLENGES • Utilities – water and electricity
SZL (49%) AFDIS (30%) • Profitability trending up. • Operating to plan. • Minute maid production • Product availability and successfully localised and innovation improving. product acceptability encouraging. • Recapitalisation programme underway. • Bottom end of the non- juice products - competitive.
BEVERAGE INSTALLED CAPACITY Lager Beer 2,4m hls Sparkling Beverages 2,4m hls Sorghum Beer 5m hls Capex will be in containers, Chibuku Super and targeted at productivity improvement.
We remain a multi beverage business dominating the beer, sparkling beverages and sorghum beer categories. We extend into adjacent territories directly (Maheu) or through strategic investments (Schweppes - Still and Afdis - Spirits)
1. Consumer disposable Incomes remain under pressure. Volume performance will reflect this, and growth although a focus area, will be a challenge in the first half of the year. 2. Keeping our beverages affordable. 3. Meeting the aspirations of our premium consumers. 4. Bringing new offerings to the market via a carefully managed innovation pipeline. 5. Nurturing strong core brands. 6. Targeted and improved market execution. 7. Regional PCC Benchmarks highlight opportunity on beer, soft drinks and Non Alcoholic Beverages (NABs). 8. Opportunity in process and cost management. 9. Ready to take advantage of any positive economic rebound. 10. Earnings growth to be ahead of GDP and inflation driven by - mix - productivity
THANK YOU
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