delta presentation2013.pdf
TRANSCRIPT
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1. WELCOME AND INTRODUCTION
2. FINANCIAL RESULTS
3. BUSINESS REVIEW
4. DISCUSSION/ QUESTIONS
5. REFRESHMENTS
Pearson Gowero
Matts Valela
Pearson Gowero
All
All
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Completed all major capital programmes - $83m. Returnable Glass injection to the new calabash bottle.
Introduced non-returnable glass across the entire beerportfolio.
Successfully launched longer shelf-life Chibuku in PET. Localised Maheu production.
Achieved an improved market supply position across allbeverages.
Achieved significant improvement in productivity and costmanagement .
Negative impact of excise increase on lager beer.
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1. FINANCIAL HIGHLIGHTS
2. FINANCIAL STATEMENTS
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Grew by 4%LAGER
Grew by 9%SBS
Declined by 8%CHIBUKU
Grew by 42%MAHEU
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Up 8% to $352 millionLAGER
Up 14% to $231 millionSBS
Up 15% to $118 millionCHIBUKU
Up 50% to $11 millionMAHEU
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EBIDTA Up 36% to $161,5m
ATTRIBUTABLE INCOME Up 39% to $102,5m
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%
EPS Up 36% to 8,49c
Final Dividend
Total Dividend ($41,3m)
Up 78% to 2,23c
Up 63% to 3,40c
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281
408
555
631
0
100
200
300
400
500
600
700
F10 F11 F12 F13
REVENUE - $m
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39
68
98
135
0
20
4060
80
100
120
140
160
F10 F11 F12 F13
EBIT - $m
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15.3
19.53 20.48
24.73
0
5
10
15
20
25
30
F10 F11 F12 F13
OPERATING MARGIN %
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EBITDA - $m
49
82
119
162
0
20
40
60
80
100
120
140
160
180
F10 F11 F12 F13
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Category Actual Volume000hl
% Growth onPrior Year
1. BEVERAGES (HLS 000)1.1 Clear Beer1.2 Sorghum Beer
1.3 Sparkling Beverages1.4 Maheu
2 0603 080
1 615132
4(8)
942
Total Excluding Associates 6 887 0
2. Plastic Tonnages 9 451 27
3. Malt Tonnages 35 834 3
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MARCH 2013US$000s
MARCH 2012US$000s
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
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2013US$000s
2012US$000s
Profit for the yearattributable to:
Owners of the parent 102 472 73 747
Non-controlling
interests1 651 1 459
104 123 75 206
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MARCH2013
MARCH2012
From Operations
Normal EPS Cents 8,49 6,22
Fully Diluted EPS - Cents8,42 6,03
Dividend per share -Cents 3,40 2,08
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ASSETS2013
US$000s2012
US$000s
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
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EQUITY AND LIABILITIES 2013US$000s
2012US$000s
Share Capital 12 230 11 927
Share Premium 24 049 19 553
Reserves 276 921 217 559Dividend Payable 27 270 14 901
Non-controlling Interests 6 780 5 129
Shareholders equity 347 250 269 069
Long- term borrowings 60 000 60 000
Deferred taxation 30 740 27 247
90 740 87 247
CURRENT LIABILITIESShort-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
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2013
US$000s
2012
US$000s
Cash flow from
operations165 112 121 391
Net cash invested (83 336) (77 137)
Net funding (3 517) (26 878)
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Shares in Issue as at 31 March
20121 192 105 715
Share Options Exercised 35 257 100
Share buyback (4 480 980)
Shares in Issue at 31 March 2013 1 222 881 835
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Target to improve Total Shareholder Return as measured by:- Revenue Growth- Margins- Cash
0%
14%
37%
63%
0%
10%
20%
30%
40%
50%
60%
70%
Volume Revenue Ebit Dividend
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1. Volume Review by Beverage category
2. Beverage Mix
3. Supply Chain/Enterprise Development
4. Associates
5. Capacity6. The Future
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HLS 000
538
1 148
1 608
1 981 2 060
0
500
1000
1500
2000
2500
F09 F10 F11 F12 F13
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HLS 000
308
770
1 175
1 4801 615
0
500
1000
1500
2000
F09 F10 F11 F12 F13
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HLS 000
1 673
3 1142 908
3 3543 080
0
500
1000
1500
2000
2500
3000
3500
4000
F09 F10 F11 F12 F13
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HLS 000
89 93
132
-20
40
6080
100
120140
F11 F12 F13
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1 815
4 550
5 796
7 196
9 451
0
2000
4000
6000
8000
10000
F09 F10 F11 F12 F13
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Mat North
2% Mat South
2%
Mash Central
5%
Manicaland
5%
Mash East
7%
Masvingo
8%
Mash West9%
Midlands
10%Bulawayo
10%
Harare
42%
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Mat North
2%
Mat South
3%Mash East
4%Mash Central
4%
Mash West
9%
Masvingo
9%
Midlands
11%Bulawayo
12%
Harare
46%
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Bulawayo
3%Mat North
5%Manicaland
5%
Mash Central
7%
Mash East
9%
Masvingo
15%
Midlands
16%
Mash West
17%
Harare
21%
Mat South
2%
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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.
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30%
46%
24%
F13
LagerSorghumSB's
29%
49%
22%
F12
Lager
Sorghum
SB's
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37%
63%
F12
LagerSorghum
40%
60%
F13
Lager
Sorghum
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0
500
1000
1500
2000
F12 F13
PremiumMain Stream84.4%
15.6%
81.6%
18.4%
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0
200
400
600
8001000
1200
14001600
1800
F12 F13
Convenience packRGB
28.4%
68.9%
31.1%
71.6%
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Revenue and margin driven by premiumisation in lager beer
and soft drinks and price correction in Chibuku
Maintained balance between mainstream and premiumcategory to avoid cannibalisation.
Maintained focus on economy segment with Eagle andChibuku.
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Focus on local sourcing Price/Quality
Barley Improved yields
Maize maximise local purchases by brewery
Other Inputs stable supply
CHALLENGES
Utilities water and electricity
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SZL (49%)
Profitability trending up.
Minute maid production
successfully localised andproduct acceptabilityencouraging.
Bottom end of the non-juice products -competitive.
AFDIS (30%)
Operating to plan.
Product availability and
innovation improving.
Recapitalisationprogramme underway.
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BEVERAGE
Lager Beer
Sparkling Beverages
Sorghum Beer
INSTALLEDCAPACITY
2,4m hls
2,4m hls
5m hls
Capex will be in containers, Chibuku Super and targeted at productivityimprovement.
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We remain a multi beverage businessdominating the beer, sparkling beverages and
sorghum beer categories. We extend into
adjacent territories directly (Maheu) or
through strategic investments (Schweppes -
Still and Afdis - Spirits)
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1. Consumer disposable Incomes remain under pressure. Volume performance willreflect this, and growth although a focus area, will be a challenge in the first halfof 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 innovationpipeline.
5. Nurturing strong core brands.
6. Targeted and improved market execution.
7. Regional PCC Benchmarks highlight opportunity on beer, soft drinks and NonAlcoholic 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
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THANK YOU