uac of nigeria plc - nigeria’s no1 economy and … · management property sales property lease...
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Contents
outlook4
Update on strategic thrusts
performance review (FY 2012 & Q1 2013)
Overview of the business in 2012Larry EttahGMD/CEO
Abdul BelloCFO
Joe DadaED Corp. Services
Larry EttahGMD/CEO
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Contents
outlook4
Update of strategic thrusts
performance review (FY 2012 & Q12013)
Overview of the business in 2012Larry EttahGMD/CEO
Abdul BelloCFO
Joe DadaED Corp. Services
Larry EttahGMD/CEO
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VISIONTo be number one in our
chosen markets, providing exceptional value to our
customers
MISSIONTo grow our top-line at twice the rate of GDP growth in Nigeria at a blended EBIT profitability of
15% OUR VALUES1. Our Customers are our Focus2. We act with Respect for the Individual3. We act with Integrity in everything we do4. Team spirit will give us good success5. Innovation for business sustenance and value creation6. We are Open and Communicate with our people
DESIRED OUTCOMEAdding value to the lives of our stakeholders
Business Review – UACN Plc
Food & Beverages Real Estate Paints Logistics Others
Grand Cereals Ltd. Grand Oil, Vital Feeds,
Grand Maize Flour, Grand Maize Grits, Rich Fill
UPDC Plc
Property Development
Facility Management
Property Sales
Property Lease
CAP Plc
Dulux Paints Caplux Paints
MDS Logistics Plc
Warehousing
Haulage
Redistribution
UNICO CPFA Ltd. In-house
Pension
UAC Foods Ltd. Gala, Funtime Cake,
Funtime Coconut Chips, Snaps Puffed Maize, Delite Fruit Juice, SWAN Water
UAC Registrars Ltd.(Divesting Interest)
UAC Restaurants Ltd(168 Outlets) Mr Bigg’s GM Nig. Ltd.
(Winding Down)Warm Spring Waters Nig. Ltd.
Gossy Water
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UAC
UAC has defined its holding company structure as a model consisting of a Corporate Centre overseeing a portfolio of interests
across 4 key verticals
FY 2012 Highlights
Spin-off of MDS Logistics and UAC Restaurants Spin-off of MDS Logistics and UAC Restaurants
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Operations Review
Sales and margin improvement despite dip in Q1 2012
Operational reviews of dairies segment resulting in improved margins
Tiger Brands partnership impacting: Asset Care Management (Production & Yield), Procurement Savings, Knowledge Transfer, Marketing & Distribution
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
UAC FOODS LTD GRAND CEREALS LTD UAC RESTAURANTS LTD
Operations Review
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
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
UPDC PLC MDS LOGISTICS PLC CAP PLC
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Contents
outlook4
Update on strategic thrusts
performance review (FY 2012 & Q1 2013)
Overview of the business in 2012Larry EttahGMD/CEO
Abdul BelloCFO
Joe DadaED Corp. Services
Larry EttahGMD/CEO
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Turnover recorded 17% growth despite adoption of full franchising model in UAC Restaurants
Review of Financial Performance
Review of Financial Performance(N’Billion)
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turnover gross profit operating profit PBT PAT
59.64
15.86
7.72 6.993.41
69.63
19.05
11.53 10.757.1
2011 2012
Analysis of Margins…EBIT MarginGross Margin
Comments
Gross Margin sustained at 27% despite increases in input costs in key categories
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20112012
27%27%
20122013
13% 17%
Improving Returns…ROAROE
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ROE and ROA grew on the back of a robust performance over the last 12 months
2011 2012
6%
12%
2011 2012
3%
6%
Total Equity (N’Billion)Total Debt (N’Billion)
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Total Debt reduces as a result of reduced leverage in Grand Cereals following successful Rights Issue. Debt to Equity ratio down from 0.59x to 0.5x
Capital Structure
20112012
33.8930.27
20112012
57.07 60.95
Segmental Analysis - TurnoverFY 2011FY 2012
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The Food & Beverage, Real Estate, Logistics and Paints segments contributed 98% to total revenues for 2012 and 2011
Segment Analysis – PBTFY 2011FY 2012
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Food & Beverages; 50%
Paints; 15%
Real Estate; 27%
Others; 2%
Logistics 5%
The Food & Beverage, Real Estate, Paints and Logistics segments contributed 97% of Group PBT for 2012
Food & Beverages; 41%
Paints; 15%
Logistics; 11%
Real Estate; 30%
Others; 3%
Performance of Key Subsidiaries
UPDC (N’Billion)
Grand Cereals (N’Billion)UAC Foods (N’Billion)
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CAP (N’Billion)
Turnover PBT
12.56
1.59
14.68
1.82
2011 2012
Turnover PBT
23.87
3.14
28.94
2.42
2011 2012
Turnover PBT
6.78
2.4
12.04
2.45
2011 2012
Turnover PBT
4.31
1.36
5.23
1.66
2011 2012
Margin pressures from grains prices, haulage & new factory take-off costs
Margins by Subsidiaries
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Gross Margins EBIT Margins
CAP UAC Foods UPDC
27%
11% 11%
28%
37%
CAP UAC Foods UPDC
47%
16%
28%
33%
42%
CAPEX (N’Million)
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CAP UAC Foods UPDC
138
3130
635466
185
• 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
Total Equity (N’Billion)Total Debt (N’Billion)
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Capital Structure
2012 2013
30.27
39.62
2012 2013
60.6 61.92
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.
Improving Returns…ROA (Annualized)ROE (Annualized)
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ROE and ROA record improvements due to growth in profitability over the review period
2012 2013
6%
8%
2012 2013
4%
6%
Margins by Subsidiaries
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EBIT Margins PBT Margins
CAP UAC Foods UPDC
29%
8%
11%
21%24%
CAP UAC Foods UPDC
31%
4%
11%
23%
14%
PBT margins impacted by interest burden in Grand Cereals and UPDC
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Contents
outlook4
Update on strategic thrusts
performance review (FY 2012 & Q1 2013)
Overview of the business in 2012Larry EttahGMD/CEO
Abdul BelloCFO
Joe DadaED Corp. Services
Larry EttahGMD/CEO
Acquisition of Livestock Feeds Plc
Transaction consummated via Secondary Market trades (11%) and Primary Market Offer (40%)Transaction consummated via Secondary Market trades (11%) and Primary Market Offer (40%)
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M&A Update
Grand Cereals’ Rights Issue of N3 Billion fully subscribed; Debt exposure reducedGrand Cereals’ Rights Issue of N3 Billion fully subscribed; Debt exposure reduced
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Contents
outlook4
Update on strategic thrusts
performance review (FY 2012 & Q1 2013)
Overview of the business in 2012Larry EttahGMD/CEO
Abdul BelloCFO
Joe DadaED Corp. Services
Larry EttahGMD/CEO
FY 2013 FORECAST (as submitted to the NSE)
• Turnover – N81.9 Billion • PBT – N12.2 Billion• PAT – N8.6 Billion
2013 Forecasts