InnscorAfrica Analyst Presentation - June 2013

7/27/2019 InnscorAfrica Analyst Presentation - June 2013

1/39

INNSCOR AFRICA LIMITED

PRESENTATION TO ANALYSTS

F2013

4 SEPTEMBER 2013

www.innscorafrica.com


2/39

OPERATING ENVIRONMENT

GROUP RESULTS F2013

HIGHLIGHTS BY BUSINESS

CLOSING REMARKS BY CEO


3/39

OPERATING ENVIRONMENT


4/39

Macro-economic conditions generally weak

Liquidity issues towards latter part of year

Increased competition from Rand imports

Consumer habits changing

Diminished local production of key raw materials

OPERATING

ENVIRONMENT


5/39

Strong generation of free cash continues

Significant investment in expansion and maintenance

projects

Continued focus on growing market share

Improved utilisation of synergies within the Group

OPERATING

ENVIRONMENT


6/39

GROUP RESULTS F2013


7/39

SUMMARISED GROUP STATEMENT

OF COMPREHENSIVE INCOME


8/39

OPERATING PROFIT

TO REVENUE


9/39

PBT TO

REVENUE


10/39

DIVIDEND PER

SHARE


11/39

REVENUE BY

SEGMENT


12/39

OPERATING PROFIT

BY SEGMENT


13/39

PBT BY SEGMENT


14/39

SUMMARISED GROUP

STATEMENT OF

FINANCIAL POSITION


15/39

RETURN ON

EQUITY


16/39

CAPITAL EXPENDITURE


17/39

SUMMARISED GROUP

STATEMENT OF CASH

FLOWS


18/39

HIGHLIGHTS BY BUSINESS


19/39

BAKERIES & FAST FOODS


20/39

BUSINESS HIGHLIGHTS


BAKERIES

Volumes increased by 12% over prior year to 128.3

million loaves

Two new additional bread lines commissioned during

H2 F2013, taking capacity to 450,000 loaves per day

New bread roll line and small confectionery line also

recently commissioned

Two further bread lines planned for commissioning

during H1 F2014


21/39

BUSINESS HIGHLIGHTS


FAST FOODS

Improved product and pricing strategies successfully

introduced at Chicken Inn and Pizza Inn

New Fish Inn brand launched in April 2013

21 additional counters added to the Zimbabwean store

network

Refurbishment programme continued


22/39

BUSINESS HIGHLIGHTS


FAST FOODS (contd)

Additional outlets will be added in Harare, Mutare,

Chegutu, Masvingo and Bulawayo during F2014

Minority shareholding in FF Northern business acquired

with effect from 1 April 2013


23/39

BUSINESS HIGHLIGHTS


FAST FOODS (contd)

Customer counts within the regional operations

increased by 4% to 11.7 million customers

16 additional counters opened during the year

210 regional counters operating at year end

An additional 31 counters planned for F2014

Nigerian market being reassessed


24/39

DISTRIBUTION GROUP AFRICA


25/39

BUSINESS HIGHLIGHTS

DISTRIBUTION GROUP AFRICA

17% volume growth recorded in Zimbabweanoperations

Improved gross margins and good cost control

enhanced profitability

Volume growth of 10% in Zambia

7% decline in volumes in Malawi but an improvement in

results achieved


26/39

SPAR


27/39

BUSINESS HIGHLIGHTS

SPAR

Retail operations still in a loss position but significantimprovements made at store level

Head Office function to be amalgamated with that of

SPAR DC

SPAR Letombo outlet successfully re-launched during

H2 F2013

Investigations underway to add additional corporate

stores


28/39

BUSINESS HIGHLIGHTS

SPAR

Reduced profitability at SPAR DC due to restructuringcost provisions incurred

Rights to operate the SPAR franchise in the Western

region recently acquired

72 outlets currently operating under various SPAR

brands

Pleasing results recorded at SPAR Zambia

Network consists of 6 Corporate stores and 7 franchised

operations


29/39

COLCOM


30/39

Disappointing results recorded for the year

A number of processes undertaken to re-energise the

business

Approximately USD4 million of one-off charges

processed to the income statement

Investment in F2014 to be focused on improving factory

efficiencies and product quality

BUSINESS HIGHLIGHTS

COLCOM


31/39

Associated Meat Packers performed exceptionally well

during the year

8 Texas low-cost protein retail outlets operational by yearend

Additional outlets currently being developed

Significantly improved results expected for F2014

BUSINESS HIGHLIGHTS

COLCOM


32/39

HOUSEHOLD GOODS


33/39

TV SALES & HOME

Volume increase of 11% recorded over prior year

Higher mix of furniture sales

9 additional outlets opened across Harare, Karoi,

Marondera, Chinhoyi, Hwange and Kadoma

New revolving-credit scheme recently introduced

Quality of debtors book remained good

BUSINESS HIGHLIGHTS

HOUSEHOLD GOODS


34/39

CAPRI

Volumes increased by 19%

Continued focus on lowering manufacturing costs

New refrigerator plant scheduled for installation

towards end of 2013

Work continues to develop and secure market share

with Hisense products

BUSINESS HIGHLIGHTS

HOUSEHOLD GOODS


35/39

ASSOCIATE AND OTHER BUSINESSES


36/39

BUSINESS HIGHLIGHTS

ASSOCIATES & OTHER

NATIONAL FOODS

Volumes increased by 21% from prior year to 489,000

metric tonnes

Results enhanced by some one-off profit streams

Significant increase in raw material stocking positions

8 factories operational during the year

7 additional depots opened

G G


37/39

BUSINESS HIGHLIGHTS

ASSOCIATES & OTHER

IRVINES

Strong contribution to overall Group results

Recorded 11% increase in volumes of processed chicken

sales, whilst day-old chicks sales grew by 16%

Production efficiencies at both farm and factory levelscontinue to improve profitability

Further investment to be made in day-old chick

production

BUSINESS HIGHLIGHTS


38/39

BUSINESS HIGHLIGHTS

ASSOCIATES & OTHER

NATPAK

With effect from 1 July 2012 shareholding in NatPak

increased to 66.67%

Large packaging requirement in the Group

Strong demand for core polypropylene woven

packaging products

New investment in plant for production of bread bags

to be commissioned in H1 F2014


39/39

Documents

InnscorAfrica Analyst Presentation - June 2013