annual results presentation - astral foods results presentation for the year ended 30 september 2013...
TRANSCRIPT
2
AGENDA
Business Overview
Poultry Industry Trends
Financial Overview
Industry Matters
Prospects
Q & A
4
THE PERIOD IN PERSPECTIVE
The past twelve months to end September 2013 reflect one of the worst trading periods
experienced by the poultry industry
Financial
Indicators
Revenue
Operating profit
Earnings per share
Headline earnings per share
4%
43%
26%
44%
5
THE PERIOD IN PERSPECTIVE
Key factors that negatively impacted the business:
• Record high poultry imports in October and November 2012 culminating in
excessive industry poultry stock levels
• Depressed sales in December 2012 followed by intense retail promotional activity
and price discounting in January and February 2013
• The impact of the US drought in 2012 impacted local Safex maize prices with
poultry feed costs peaking in January to March 2013
• Extreme drought conditions in the North West region of SA reduced the 2013
local maize crop
• The Rand depreciated by 20% for the period under review against the US Dollar
negating any benefits of lower CBOT corn prices during 2H2013
6
THE PERIOD IN PERSPECTIVE
Violent strike action at Earlybird Olifantsfontein and County Fair resulted in a
direct cost of R37 million in 1H2013
Astral’s balance sheet remains healthy with a net debt to equity ratio of 15%
(30 September 2012: 7%)
The Group’s integrated best cost business model proved its value with the
business remaining profitable despite an industry that is generally making losses
Good performances from the Feed and Other Africa divisions have contributed
positively to the Group’s earnings
The sale of 25% of Astral’s interest in Nutec was successfully concluded with
proceeds amounting to R64 million
8
(Operating profit - R million)
Operating loss
Profit margin negative
Feed costs up 14.1%
(Revenue - R million)
Revenue up 2.8%
Broiler volumes down 5.4%
Broiler realisations up 8.4%
5 835 6 001
-
1 000
2 000
3 000
4 000
5 000
6 000
F2012 F2013
137
-109
(120)
(70)
(20)
30
80
130
F2012 F2013
POULTRY DIVISION - OVERVIEW
9
Average broiler feed prices increased year-on-year by R563 per ton (up 14%)
Broiler selling prices increased year-on-year by 8.4%
Record levels of poultry imports in November 2012 ≈ 8 million birds per week
Record high poultry stock levels in December 2012
Planned broiler production cutbacks on back of poor sales ≈ 5%
Below cost promotional activity on IQF from January to March 2013
Continuing negative impact of above inflation energy cost increases ≈ up 11%
POULTRY DIVISION - OVERVIEW
10
Product Mix
56%
3%
10%
5%
5%
21%
IQF Mixed Portions IQF Single Portions Fresh
Value Added Frozen Tertiary
POULTRY DIVISION – SALES
11
BROILER PRODUCTION PERFORMANCES
70%
75%
80%
85%
90%
95%
100%
105%
110%
115%
120%
F2008 F2009 F2010 F2011 F2012 F2013
Mortality Feed conversion (FCR) Efficiency factor (PEF)
Key indicators base-lined to 100% in 2008
12
90%
92%
94%
96%
98%
100%
102%
104%
F2008 F2009 F2010 F2011 F2012 F2013
Slaughter age Live weight Processing yield
(37.0 days)
(34.3 days)
BROILER PRODUCTION PERFORMANCES
Key indicators base-lined to 100% in 2008
13
Projected lower feed costs in comparative first half reporting period
Broiler production efficiency improvements expected to continue
Continued realignment of poultry production capacities to reduce costs
Reduced heating / energy costs at County Fair with LPG replacement project
SAPA’s application for investigation into EU dumping of poultry accepted by ITAC
POULTRY DIVISION - PROSPECTS
15
(Operating profit - R million)
Operating profit up 14.7%
Profit margin 6.7% (unchanged)
Rand / ton margin increase
(Revenue - R million)
Revenue up 13.6%
Volumes up 1%
Realisations up 13.3%
4 327
4 916
-
1 000
2 000
3 000
4 000
5 000
F2012 F2013
289
331
-
50
100
150
200
250
300
F2012 F2013
FEED DIVISION - OVERVIEW
16
FEED DIVISION - OVERVIEW
Lower in-house feed volumes (down 3%) due to lower broiler placements
External feed volumes increased by 4%
Rand per ton margin increased on prior year despite a competitive landscape
The division has shown good cost control for the reporting period
Inflationary costs were successfully recovered from the market
Maintained an acceptable level of credit risk
17
Meadow Feeds - Sales Mix
22%
49%
11%
18%
Dairy Poultry Integrated Poultry External Other
FEED DIVISION – SALES
18
FEED DIVISION - PROSPECTS
Projected lower maize plantings in new season
Normal rainfall could lead to 12,6 million ton crop in 2014
External feed sales drive to continue in the face of lower internal volumes
Continued focus to implement new cost saving technologies
Focus on Rand per ton margins to continue
New Standerton feed mill margin contribution in 2H2014
20
(Operating profit - R million)
Operating profit up 19.5%
Profit margin 10.2%
New Moz hatchery included
(Revenue - R million)
Revenue up 29.5%
Volumes up 14.2%
Realisations up 13.4%
341
442
-
100
200
300
400
F2012 F2013
38
45
-
10
20
30
40
F2012 F2013
OTHER AFRICA DIVISION - OVERVIEW
21
OTHER AFRICA DIVISION - OVERVIEW
Zambia
Feed sales from Tiger Animal Feeds increased by 17% year-on-year through a
recovery in the small scale farming sector
Feed mill efficiencies have improved with the replacement of ageing process
equipment
The double up of the Tiger Chicks broiler breeder and hatchery operation has
progressed well with completion scheduled by end 2013
Mozambique
The new Mozpintos broiler hatchery was commissioned in 1H2013 and is running
at capacity and turning out good results
The construction of six new broiler breeder houses for Mozpintos has commenced
and is scheduled for completion in early 2014
22
F2013 Country PBIT Contribution
64%
22%
14%
OTHER AFRICA DIVISION PROFIT SEGMENTATION
F2012 Country PBIT Contribution
55%
25%
20%
Zambia Mozambique Swaziland
R38 million R45 million
23
OTHER AFRICA DIVISION - PROSPECTS
Zambia
Tiger Animal Feeds holds good maize and soya positions into the new financial
year
Increased sales of day old chicks from the double up of the hatchery and broiler
breeder operation will be realised in December 2013
The continued expansion of feed and day old chick outlets will improve product
availability and competitive feed prices direct to farm
Mozambique
The new broiler breeder houses will be commissioned during 2014 supplying the
hatchery with hatching eggs thereby replacing imported eggs
Expanding into further feed and day old chick outlets will improve market
penetration and sales
27
15
.44
15.8
1 16.2
8
13.9
5
13.7
8
14.0
6 14.6
0
14.0
4
13.4
1
13.8
1
13.0
9
13.1
2
13.2
2
13.4
7
13.4
1
12.7
0
11.9
6
11.9
5
11.7
5 12.2
2
11.7
5
11
.76 12.2
9
11.8
3 12.3
3 12.8
3
13.5
1
13.3
4
13.4
2
13.2
0
13
.38
13.4
6
13.1
8
12
.79
12
.86
13.5
6
13.9
1
14.9
0 1
5.5
3
14.5
1
13.6
6
13.2
1
13.4
2
13.1
5
12.6
7
12.5
1
13.4
0
15.0
3
15.7
9
15.5
5
14.8
2
13.8
5
14.0
8
15.5
3
15.3
5
15.2
4
15
.07
15.4
2
15.4
3
15.8
3
11.00
12.00
13.00
14.00
15.00
16.00
17.00
Oct-
08
Dec-0
8
Feb
-09
Ap
r-09
Ju
n-0
9
Au
g-0
9
Oct-
09
Dec-0
9
Feb
-10
Ap
r-10
Ju
n-1
0
Au
g-1
0
Oct-
10
Dec-1
0
Feb
-11
Ap
r-11
Ju
n-1
1
Au
g-1
1
Oct-
11
Dec-1
1
Fe
b-1
2
Ap
r-12
Ju
n-1
2
Au
g-1
2
Oct-
12
Dec-1
2
Feb
-13
Ap
r-13
Ju
n-1
3
Au
g-1
3
Broiler selling price Six month average
Industry trends and statistics | Source: SAPA
Rand per kilogram
INDUSTRY BROILER SELLING PRICES
28
Source: SAPA & CJA Strategic Risk Brokers
BROILER PRICE VS FOOD PRICE INFLATION
75
80
85
90
95
100
105
110
115
120
125
130
75
80
85
90
95
100
105
110
115
120
125
130
Oct-
08
Dec-0
8
Feb
-09
Ap
r-09
Ju
n-0
9
Au
g-0
9
Oct-
09
Dec-0
9
Feb
-10
Ap
r-10
Ju
n-1
0
Au
g-1
0
Oct-
10
Dec-1
0
Feb
-11
Ap
r-11
Ju
n-1
1
Au
g-1
1
Oct-
11
Dec-1
1
Feb
-12
Ap
r-12
Ju
n-1
2
Au
g-1
2
Oct-
12
Dec-1
2
Feb
-13
Ap
r-13
Ju
n-1
3
Au
g-1
3
Broiler selling price index SA food price index
29
Source: SAPA & Own Data
CHANGE IN BROILER SELLING PRICE VS FEED PRICE
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
Oc
t-0
8
De
c-0
8
Feb
-09
Ap
r-0
9
Ju
n-0
9
Au
g-0
9
Oc
t-0
9
De
c-0
9
Feb
-10
Ap
r-1
0
Ju
n-1
0
Au
g-1
0
Oc
t-1
0
De
c-1
0
Feb
-11
Ap
r-1
1
Ju
n-1
1
Au
g-1
1
Oc
t-1
1
De
c-1
1
Feb
-12
Ap
r-1
2
Ju
n-1
2
Au
g-1
2
Oc
t-1
2
De
c-1
2
Feb
-13
Ap
r-1
3
Ju
n-1
3
Au
g-1
3
% Change in feed price % Change in broiler selling price
30
-
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
50 000
Oct-
08
Dec-0
8
Feb
-09
Ap
r-09
Ju
n-0
9
Au
g-0
9
Oct-
09
Dec-0
9
Feb
-10
Ap
r-10
Ju
n-1
0
Au
g-1
0
Oct-
10
De
c-1
0
Feb
-11
Ap
r-11
Ju
n-1
1
Au
g-1
1
Oct-
11
Dec-1
1
Feb
-12
Ap
r-12
Ju
n-1
2
Au
g-1
2
Oct-
12
Dec-1
2
Feb
-13
Ap
r-13
Ju
n-1
3
Au
g-1
3
Total poultry imports 6 per. Mov. Avg. (Total poultry imports)
Tons
Source: SAPA
POULTRY IMPORTS PER MONTH
31
Source: CJA Strategic Risk Brokers & SAPA
Indicators base-lined to 100% in October 2008
Index
50
75
100
125
150
175
200
225
250
50
75
100
125
150
175
200
225
250
Oct-
08
Dec-0
8
Feb
-09
Ap
r-09
Ju
n-0
9
Au
g-0
9
Oct-
09
Dec-0
9
Feb
-10
Ap
r-10
Ju
n-1
0
Au
g-1
0
Oct-
10
Dec-1
0
Feb
-11
Ap
r-11
Ju
n-1
1
Au
g-1
1
Oct-
11
Dec-1
1
Feb
-12
Ap
r-12
Ju
n-1
2
Au
g-1
2
Oct-
12
Dec-1
2
Feb
-13
Ap
r-13
Ju
n-1
3
Au
g-1
3
Broiler selling price index Broiler feed price index Imports index
BROILER PRICE VS FEED PRICE VS IMPORTS
33
ABRIDGED STATEMENT OF COMPREHENSIVE INCOME
Year ended 30 September 2013
R million
2012
R million % change
Revenue 8 524 8 160
Operating profit 272 477
Operating profit margin 3.2% 5.8%
Profit on sale of business unit 79 36
Profit before interest and tax 351 513
Net finance costs (27) (18)
Share of profit of associates 3 -
Profit before tax 327 495
Tax (80) (163)
Profit for the period 247 333
Headline Earnings 169 300
EPS – Cents 641 865
HEPS – Cents 443 787
4%
43%
32%
34%
26%
44%
26%
44%
34
1.269 1.721
2.168 2.285
3.345 3.623 4.382 4.579
5.149 5.030 5.258 5.834 6.001
1.983 2.689
2.681 2.703
2.516 2.670
3.530 5.138
3.988 3.577 3.478
4.327 4.916
2.793
3.692 3.947 4.053
4.838 5.184
6.329
6.852
7.407 7.006
7.227
8.160 8.524
0.000
2.000
4.000
6.000
8.000
10.000
12.000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Poultry Feed Other Africa Services & Ventures External revenue
GROUP ANNUAL REVENUE
(R billion)
35
POULTRY – ANNUAL REVENUE
2 741
2 408 2 581
2 449 2 606 2 652
2 878 2 956 2 952 3 049
0.00000
0.20000
0.40000
0.60000
0.80000
1.00000
1.20000
1.40000
1000
1500
2000
2500
3000
3500
4000
1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13
Revenue Change in realisations (SAPA) Change in volumes
(R million)
36
FEED – ANNUAL REVENUE
2 238
1 750 1 847
1 730 1 708 1 770
2 175 2 152
2 397 2 519
0.00000
0.20000
0.40000
0.60000
0.80000
1.00000
1.20000
1.40000
1000
1200
1400
1600
1800
2000
2200
2400
2600
2800
3000
1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13
Revenue Change in volumes Change in feed price
(R million)
37
GROUP ANNUAL OPERATING PROFIT
137 145 134 128 229 124 140
-3 -117
8
126 135 151
130
133
149 154
135 156
175
279 302 304
281
375
299 324
153
64
208
-0.1
0.1
0.3
0.5
0.7
0.9
1.1
1.3
-120
-20
80
180
280
380
1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13
Poultry Feed Services & Ventures
Other Africa Change in feed price Change in realisations (SAPA)
(R million)
38
GROUP ANNUAL OPERATING PROFIT
124 90 174 238 383 494 476 163 282 262 353 137
-109
79 130
153
151
214
272 333
385
261
281
282
289
331
203
220
328
389
597
766
809
548 581 585
674
477
272
7.3%
5.9%
8.3%
9.6%
12.3%
14.8%
12.8%
6.7%
6.6%
8.4%
9.3%
5.8%
3.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
-120
-20
80
180
280
380
480
580
680
780
F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 F2013
Poultry Feed Other Africa Services & Ventures
(R million)
39
Impact of
poultry
selling price,
yield, poultry
sales
volumes,
feed price,
FCR and
industrial
action on
the Poultry
Division’s
profitability
POULTRY DIVISION PROFIT IMPACT
40
POULTRY DIVISION PROFIT SENSITIVITY
Movement in Key Indicator Annual PBIT Impact (R million)
Poultry selling price – 10 cents per kg 42,3
Poultry feed cost – R100 per ton 65,3
Poultry processing yield – 1% 54,5
Feed conversion ratio – 1 point 17,4
41
ABRIDGED STATEMENT OF FINANCIAL POSITION
At 30 September 2013
R million
2012
R million % change
Non-current assets 2 016 1 840
Net working capital 486 333
Current assets (excl. cash) 1 845 1 648
Current liabilities (excl. borrowings) (1 359) (1 315)
Non-current liabilities (excl. borrowings) (511) (502)
Assets held for sale (net) - 31
Net assets 1 991 1 702
Net debt 263 106
Structured debt 185 28
Cash and cash equivalents 78 78
Equity 1 728 1 596
Total 1 991 1 702
10%
46%
12%
3%
2%
17%
148%
17%
8%
42
CASH FLOW
For the year ended 30 September 2013
R million
2012
R million % change
Cash operating profit 388 597
Working capital requirement (151) (119)
237 478
Tax paid (67) (142)
Net interest paid (27) (18)
Capital expenditure (241) (211)
Finance received - loans 155 -
Other cash flow items (3) -
Cash flow before financing activities 54 207
Dividends paid (128) (324)
Movement in cash equivalents (74) (117)
Disposals (PPE and investments) 57 87
Opening balance (61) 69
Closing balance (78) (61)
35%
50%
28%
43
CAPITAL EXPENDITURE
Year ended 30 September 2013
R million
2012
R million
Depreciation 123 119
Replacement capex 73 106
Expansion capex - other 32 100
- new feed mill 136 -
Total capex spent 241 211
Commitments - other 111
- new feed mill 69
Total spent and committed 415
44
KEY FINANCIAL RATIOS
37 36
48 48
51
65
55
31 31 30
34
23
12
31 33
39 39
46
49
45
25 26 26
29
21
15
8.9
7.5
10.0
11.4
13.9
16.5
14.5
9.3 9.3
9.9 11.0
7.4
4.6
7.3 5.9
8.3
9.6
12.3
14.8
12.8
8.0 7.8 8.4
9.3
5.8
3.2
5.5 5.5 6.1
4.7 4.1 4.4 4.3 4.7 4.8
3.6 3.7 4.0 3.8
-
5.0
10.0
15.0
20.0
25.0
30.0
0
10
20
30
40
50
60
70
Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13
RONA ROE EBITDA margin PBIT margin Asset turn
45
KEY FINANCIAL INDICATORS
8.53
10.79
14.34
17.36
23.83
28.28
33.47 34.24
35.38
37.43
41.36 41.65
45.03
23
20
21
29
17
9
19
12
15
11 10
16
21
26
22 21
12
14
14
9
3
7
15
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13
NAV share Working capital days Net Debt / Equity
46
HEADLINE EARNINGS PER SHARE & DIVIDEND PER SHARE
(Cents per share)
272 326
487
631
958
1286
1381
840 890
960
1148
787
443
90 108 168
230
380
585
700 700 700 760
810
656
222
0
200
400
600
800
1000
1200
1400
1600
F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 F2013
Headline earnings per share Dividend per share
48
INDUSTRY MATTERS
On 30 September 2013 a revised General Rate of Duty was introduced on all
imported poultry products (EU exempt)
The new tariffs will go some way in correcting the “uneven playing field” that has
existed for some time and severely damaged the local industry
Proposed brining levels of 8% by DAFF unresolved and both SAPA and individual
company submissions have been made in this regard
Astral supports the requirement for regulatory control around brining, however
reducing the level to 8% will lead to excessive poultry price increases
ITAC accepted an application from SAPA into alleged dumping of poultry products
from the EU after the industry showed evidence of financial harm
50
PROSPECTS
Positive Negative
Implementation of a revised General
Rate of Duty (which excludes the EU)
on poultry imports
Lower maize plantings for the new
season are projected
Projected lower feed costs in 1H2014
over the comparable period in F2013
to benefit downstream poultry
production costs
Lack of pricing power of the poultry
industry due to the continued
oversupply of chicken
Earnings contribution from the new
Standerton feed mill in the latter half
of F2014
Uncertainty over the 8% chicken
brining levels as indicated by DAFF
Growth from the other African
operations is expected to continue
Escalating zero-rated EU poultry
imports pose a threat
54
Strike action (1H2013)
Earlybird Olifantsfontein (Processing) – 9 week strike
County Fair (Farms) – 8 week strike
Direct cost of both strikes – R37 million
In both instances the strikes were settled at a 0% increase in wages
Wage settlements (2H2013)
All current annual wage negotiations concluded
Certain wage agreements for a two to three year period
LABOUR MATTERS
55
NEW STANDERTON FEED MILL
Construction work commenced in November 2012
Equipment installation commenced in August 2013
Full feed production by May 2014
Budgeted cost of R197 million
DTI Manufacturing Investment Programme Grant – R30 m approved October 2013
Earnings contribution to the Group for F2014 estimated at R20 m
56 Source: CJA Strategic Risk Brokers
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14E 2014/15F
Actual Actual Actual Actual Actual Estimate Forecast
Carry In (1 May) 1 049 1 584 2 134 2 340 994 1 416 1 030
Crop Estimate 12 121 11 723 12 567
Sagis Delivery 11 891 11 629 12 015 10 325 11 929 11 304 12 132
Minus early deliveries 0 0 0 0 0 0 0
Imports 27 27 0 422 11 0 0
Total Supply 12 967 13 240 14 150 13 087 12 933 12 720 13 163
Domestic Usage Food 4 523 4 478 4 515 4 492 4 499 4 656 4 695
Domestic Usage Feed 4 011 4 101 4 271 4 343 4 378 4 391 4 393
Gristing, withdrawn & released 562 755 866 692 674 624 584
Total Domestic Usage 9 096 9 334 9 652 9 527 9 551 9 670 9 672
Exports & Sundries 2 287 1 772 2 158 2 554 1 966 2 019 1 995
Plus early deliveries 0 0 0 0 0 0 0
Carry Out (30 Apr) 1 584 2 134 2 340 1 006 1 416 1 030 1 496
No of days usage 64 83 88 39 54 39 56
STU 17.42% 22.87% 24.24% 10.56% 14.83% 10.65% 15.46%
Marketing year (May to April)
'000 tons
SOUTH AFRICA - TOTAL MAIZE SUPPLY & DEMAND
57 Source: CJA Strategic Risk Brokers
RSA MAIZE CARRY OUT AND STOCK TO USE RATIO
17.42%
22.87%
24.24%
10.56%
14.83%
10.65%
15.46%
0%
5%
10%
15%
20%
25%
0
500
1 000
1 500
2 000
2 500
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14E 2014/15F
Carry out ('000 tons) Total maize stock to use ratio
58 Source: CJA Strategic Risk Brokers
US CORN END STOCKS AND STOCK TO USE RATIO
13.91%
13.09%
8.66%
7.92% 7.45%
15.11%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
50 000
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14E
Ending stock ('000 tons) Total maize stock to use ratio
59 Source: CJA Strategic Risk Brokers
SAFEX YELLOW MAIZE VS CBOT CORN IN RAND TERMS
F2009 F2010 F2013 F2011 F2012
60
20
24
28
32
36
40
10.0
12.0
14.0
16.0
18.0
20.0
22.0
24.0
26.0
28.0
Oct-
08
Dec-0
8
Feb
-09
Ap
r-09
Ju
n-0
9
Au
g-0
9
Oct-
09
Dec-0
9
Fe
b-1
0
Ap
r-10
Ju
n-1
0
Au
g-1
0
Oct-
10
Dec-1
0
Feb
-11
Ap
r-11
Ju
n-1
1
Au
g-1
1
Oct-
11
Dec-1
1
Feb
-12
Ap
r-12
Ju
n-1
2
Au
g-1
2
Oct-
12
Dec-1
2
Feb
-13
Ap
r-13
Ju
n-1
3
Au
g-1
3
RSA broilers (slaughtered / week) Poultry imports (birds / week)
Broiler selling price (Rand / kg) Per capita consumption (kg)
Million birds per week / Rand per kg kg
Source: SAPA
LOCAL BROILER PRODUCTION, IMPORTS & PER CAPITA CONSUMPTION
61
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
F2010 20 093 40 735 60 774 77 813 97 763 124 813 142 226 160 940 185 290 209 164 229 951 252 485
F2011 24 684 48 108 76 511 103 474 127 429 156 795 182 871 215 684 250 081 286 051 320 321 349 364
F2012 33 348 67 819 100 540 135 614 170 194 204 560 244 296 278 914 305 472 326 520 353 296 387 173
F2013 47 942 89 095 117 712 145 426 172 727 207 148 243 623 282 813 316 007 343 903 371 865 409 383
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
450 000F2010 F2011 F2012 F2013
Industry trends and statistics |
Tons
+6%
Source: SAPA
TOTAL POULTRY IMPORTS (CHICKEN, TURKEY, MDM)
F2012 33 348 34 471 32 721 35 074 34 580 34 365 39 736 34618 26 558 21 048 26 776 33 877
F2013 47 492 41 153 28 617 27 714 27 301 34 421 36 475 39 190 33 194 27 896 27 962 37 518
% Var 43.8 19.4 -12.5 -21.0 -21.0 0.2 -8.2 13.2 25.0 32.5 4.4 10.7
62
IMPACT OF NEW POULTRY IMPORT TARIFF CODES
Product
August 2013
FOB Price
R/kg
Upliftment
charge - 10%
R/kg
Cost at
previous duty
R/kg
Cost at
revised duty
R/kg
Difference
R/kg
Chicken
Carcasses 4.09 4.50 5.71 5.89 0.18
Whole
Birds 14.15 15.57 19.77 28.33 8.56
Boneless
Cuts 23.04 25.34 26.61 28.39 1.77
Offal 7.23 7.95 10.10 10.34 0.24
Bone-in
Portions 14.25 15.68 17.88 21.47 3.60
63
Ex BRAZIL - November 2013
FROZEN LEG QUARTERS BULK PACKED
CIF DBN US$ per ton TON 1 600.00 1 600.00 1 600.00 SA COST
R/$ exchange rate R$ 9.00 9.50 10.00
Rand per ton TON 14 400.00 15 200.00 16 000.00 20 540.00
Rand per kg KG 14.40 15.20 16.00 20.54
Duty per kg KG 37% 37% 37% -
Clearance costs KG 0.50 0.50 0.50 -
COST INTO STORAGE KG 20.23 21.32 22.42 20.54
Storage KG 0.50 0.50 0.50 -
Distribution KG 0.60 0.60 0.60 0.69
Financing KG 0.60 0.60 0.60 0.62
TOTAL COST KG 21.93 23.02 24.12 21.85
Ex EUROPE - November 2013
FROZEN LEG QUARTERS BULK PACKED
CIF DBN US$ per ton TON 1 630.00 1 630.00 1 630.00 SA COST
R/$ exchange rate R$ 9.00 9.50 10.00
Rand per ton TON 14 670.00 15 485.00 16 300.00 20 540.00
Rand per kg KG 14.67 15.49 16.30 20.54
Duty per kg KG 0% 0% 0% -
Clearance costs KG 0.50 0.50 0.50 -
COST INTO STORAGE KG 15.17 15.99 16.80 20.54
Storage KG 0.50 0.50 0.50 -
Distribution KG 0.60 0.60 0.60 0.69
Financing KG 0.60 0.60 0.60 0.62
TOTAL COST KG 16.87 17.69 18.50 21.85
Industry trends and statistics |
BRAZIL & EUROPE PRODUCT COST BENCHMARK
64
49%
8%
16%
10%
5%
12%
2013 YTD
TOTAL POULTRY IMPORTS – COUNTRY SPLIT
2012
52%
7%
14%
7%
6%
14%
Brazil Argentina Netherlands
UK Germany Other
Source: SAPA
+6%
65
1%
41%
5% 14%
39%
2013 YTD
TOTAL POULTRY IMPORTS – PRODUCT SPLIT
2012
7%
44%
6% 8%
35%
Whole chicken Leg quarters
Chicken fillets Chicken offal
MDM
Source: SAPA
66
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
5 500
Ma
r-0
8
Ju
n-0
8
Sep
-08
Dec-0
8
Ma
r-09
Ju
n-0
9
Sep
-09
Dec-0
9
Ma
r-10
Ju
n-1
0
Sep
-10
Dec-1
0
Ma
r-11
Ju
n-1
1
Sep
-11
Dec-1
1
Ma
r-12
Ju
n-1
2
Sep
-12
De
c-1
2
Ma
r-13
Ju
n-1
3
Sep
-13
Industry trends and statistics |
Sheep
Beef
Pork
Chicken
Chicken Pork Beef Sheep
Feed Conversion Rate 1.7 2.2 5.5 5.0
Per Capita Consumption 2013 Est. 39 kg 2012 Act. 4.6kg 2012 Act. 16.5kg 2012 Act. 2.8kg
Source: SAPA & FNB
PRODUCER PRICE COMPARISON – SA PROTEIN
Cents per kg
67
Tel: +27 (0) 12 667 5468
Fax: +27 (0) 86 504 2002
Astral Foods Corporate Office
92 Koranna Avenue,
Doringkloof Centurion, 0157,
Gauteng, South Africa
Chris Schutte
Chief Executive Officer
Tel : +27 (0) 12 667 5468
Fax : +27 (0) 86 504 2002
Email: [email protected]
Website: www.astralfoods.com
Daan Ferreira
Group Financial Director
Tel : +27 (0) 12 667 5468
Fax : +27 (0) 86 504 1602
Email: [email protected]
Astral Foods Limited
CONTACTS