14/05/2014

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14/05/2014
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AGENDA
1. WELCOME AND INTRODUCTION PEARSON GOWERO
2. TRADING REVIEW PEARSON GOWERO
3. FINANCIALS MATTS VALELA
4. DISCUSSION/QUESTIONS ALL
5. REFRESHMENTS ALL
14/05/2014
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VOLUME BEVERAGE CATEGORY
Declined by 18%
LAGER
Declined by 2%
SPARKLING
BEVERAGES
Grew by 12%
SORGHUM BEER
Grew by 33%
ALTERNATIVE
BEVERAGES
(MAHEU)
Grew by 11%
PLASTICS
TRADING REVIEW - ALL BEVERAGES
Population 653,337 PCC
Lagers -22% 25
SBs -1% 28
Sorghum 22% 17
Population 683,893 PCC
Lagers -26% 4
SBs -9% 6
Sorghum 3% 9
Population 1,485,090 PCC
Lagers -11% 9
SBs 0% 9
Sorghum -4% 31
Population1,614,941 PCC
Lagers -14% 9
SBs 2% 10
Sorghum 1% 28
Population 749,017 PCC
Lagers -13% 4
SBs 6% 5
Sorghum 3% 13
Population 1,752,698 PCC
Lagers -10% 7
SBs
Sorghum 30% 21
Population 2,123,132 PCC
Lagers -13% 32
SBs -4% 32
Sorghum 37% 39
Population 1,344,955 PCC
Lagers -9% 6
SBs 0% 6
Sorghum 10% 16
Population 1,152,520 PCC
Lagers -9% 7
SBs 9% 6
Sorghum 5% 19
Population 1,501,656 PCC
Lagers -5% 11
SBs 3% 10
Sorghum 2% 37
Total Beverages Volume
14 13 !ro"th
6,904 6,887 0#
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VOLUME REVIEW
Full year volume flat
Marked slowdown in consumer spend in last half.
Worsening economic fundamentals.
Premium category contribution up.
Retail pricing for beer still an issue.
Consumer switch to affordable offerings.
LAGER BEER FIVE YEAR VOLUME PERFORMANCE
HLs 000
0
500
1 000
1 500
2 000
2 500
F10 F11 F12 F13 F14
1 148
1 608
1 981
2 060
1 697
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TRADING REVIEW - LAGER BEER
Resource deployment follows the per capita map.
Parallel imports in border areas. (same brands different source)
Province
F14/F15
Volume PCC
Mashonaland West -10% 11
Matabeleland North -14% 4
Mashonaland East -15% 6
Masvingo Province -16% 9
Harare -16% 32
Manicaland -17% 8
Midlands Province -17% 9
Mashonaland Central -17% 7
Bulawayo -23% 25
Matabeleland South -28% 4
Total Lagers -18% 13
TRADING REVIEW - LAGER BEER MIX
HLs 000
0
500
1000
1500
2000
2500
F13 F14
4% 7%
77%
72%
19%
21%
Premium
Main Stream
Economy
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SPARKLING BEVERAGES FIVE YEAR VOLUME
PERFORMANCE
HLs 000
0
500
1 000
1 500
2 000
F10 F11 F12 F13 F14
770
1 175
1 480
1 615 1 589
TRADING REVIEW - SPARKLING BEVERAGES
Demand held for most of the year except 4
th
quarter.
Harare had an acute water problem leading to stock outs in 4
th
quarter.
Province
F14/F15
Volume PCC
Mashonaland Central 9% 7
Matabeleland North 6% 4
Mashonaland West 3% 10
Midlands Province 2% 11
Masvingo Province 0% 9
Mashonaland East 0% 6
Bulawayo -1% 28
Harare -4% 32
Matabeleland South -9% 6
Total SBs -1% 12
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TRADING REVIEW - SPARKLING BEVERAGES MIX
HLs 000
0
500
1000
1500
2000
F13 F14
68%
60%
32%
40%
Convenience
RGB
SORGHUM BEER FIVE YEAR VOLUME PERFORMANCE
HLs 000
1 200
1 700
2 200
2 700
3 200
3 700
F10 F11 F12 F13 F14
3 114
2 908
3 354
3 080
3 442
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TRADING REVIEW SORGHUM BEER
Chibuku spurred by Super.
Scud holding shore and growing modestly
Further investment made for Chibuku Super.
Province
F14/F15
Volume PCC
Harare 37% 40
Manicaland 30% 21
Bulawayo 22% 17
Mashonaland East 10% 16
Mashonaland Central 5% 19
Matabeleland North 3% 13
Matabeleland South 3% 9
Mashonaland West 2% 37
Midlands Province 1% 28
Masvingo Province -4% 31
Total Sorghum 12% 26
TRADING REVIEW - SORGHUM BEER MIX
HLs 000
0
1000
2000
3000
4000
F13 F14
10%
100%
90%
Chibuku
Chibuku Super
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MARKET SHARE
Focus was on market retention and building brand loyalty.
Lager share largely driven by mainstream
Sorghum beer demand reignited by Chibuku Super
Lager Beer Sorghum Beer Soft Dr!"s
$%L&' B%(%)'!%S 99 84 98
PLASTIC PACKAGING FIVE YEAR TONNAGE
PERFORMANCE
Tonnes
0
2 000
4 000
6 000
8 000
10 000
12 000
F10 F11 F12 F13 F14
4 550
5 796
7 468
9 451
10 495
Tonnage driven by PET preforms for Sparkling Beverages.
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OTHER HIGHLIGHTS
2. Optimisation of RTM to improve customer service and production planning
(pre- order)
3. Operational focus by beverage category extended to Lagers and SBs
4. Excise duty remains an impediment to volume growth
5. Supply chain challenges exacerbated by regulatory restrictions (quotas for sugar,
ban on maize imports and other import controls
1. Implementation of new ERP System (SAP) enabling real-time processing of
transactions
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AGENDA
1. FINANCIAL HIGHLIGHTS
2. FINANCIAL STATEMENTS
VOLUME PERFORMANCE SUMMARY
Category Actual Volume 000hl % Growth on Prior
Year
1. BEVERAGES (HLS 000)
1.1 Clear Beer
1.2 Sorghum Beer
1.3 Sparkling Beverages
1.4 Maheu
1 696
3 442
1 590
175
(18)
12
(2)
33
Total Excluding Associates 6 903 0.25
2. Plastic Tonnages 10 495 11
3. Malt Tonnages 32 639 (10)
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GROSS SALES
Down 10% to $316 million
LAGER
Down 2% to $225 million
SPARKLING
BEVERAGES
Up 24% to $146 million CHIBUKU
Up 35% to $15 million
ALTERNATIVE
BEVERAGES
(MAHEU)
FINANCIAL HIGHLIGHTS
REVENUE
Declined by 1% to $625,5 million (Turnover - $733,8m)
OPERATING MARGIN %
Up from 24.73% to 24.75%
EBIT
Down by 1% to $134,2 million
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FINANCIAL HIGHLIGHTS Cont
EBITDA
Up by 2% to $165,2 million
ATTRIBUTABLE INCOME
Increased by 3% to $105,7 million
EARNINGS PER SHARE
Increased by 1% to 8,55 cents
DIVIDEND PER SHARE
Up 4% on prior year
Interim dividend paid per share 1,30 cents
Final dividend proposed per share 2,25 cents
STATEMENT OF COMPREHENSIVE INCOME FOR THE
PERIOD
MARCH 2014
US$000s
MARCH 2013
US$000s
REVENUE 625 517 631 276
Operating income 134 184 134 989
Net finance expense 3 763 (574)
Share of associates profit 2 283 2 458
PROFIT BEFORE TAX 140 230 136 873
Taxation (33 037) (32 750)
TOTAL COMPREHENSIVE INCOME 107 193 104 123
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ANALYSIS OF ATTRIBUTABLE INCOME
2014
US$000s
2013
US$000s
Profit for the half year from
operations attributable to:
Owners of the parent 105 664 102 472
Non-controlling interests 1 529 1 651
107 193 104 123
EARNINGS PER SHARE
MARCH 2014 MARCH
2013
From Operations
Normal EPS Cents 8,55 8,49
Fully Diluted EPS - Cents 8,49 8,42
Dividend per share - Cents 3,55 3,4
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STATEMENT OF FINANCIAL POSITION
ASSETS
2014
US$000s
2013
US$000s
Non-current assets
Property, plant and equipment 353 209 319 241
Investments, loans and trademarks 35 228 30 598
TOTAL NON-CURRENT ASSETS 388 437 349 839
CURRENT ASSETS
Inventories 100 153 93 012
Trade and other receivables 44 807 43 999
Cash and cash equivalents 86 489 75 088
TOTAL CURRENT ASSETS 231 449 212 099
TOTAL ASSETS 619 886 561 938
STATEMENT OF FINANCIAL POSITION Cont
EQUITY AND LIABILITIES
2014
US$000s
2013
US$000s
Share Capital 12 342 12 230
Share Premium 28 982 24 049
Reserves 336 974 276 921
Dividend Payable 27 772 27 270
Non-controlling Interests 8 309 6 780
Shareholders equity 414 379 347 250
Long- term borrowings - 60 000
Deferred taxation 35 769 30 740
35 769 90 740
CURRENT LIABILITIES
Short term borrowings 71 293 18 605
Interest free liabilities 103 149 105 343
TOTAL CURRENT LIABILITIES 169 738 123 948
TOTAL EQUITY AND LIABILITES 619 886 561 938
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CASH FLOW
2014
US$000s
2013
US$000s
Cash flow from operations 128 835 134 094
Net cash invested (67 653) (83 337)
Net funding 15 196 (3 517)
SHARE CAPITAL MOVEMENTS
Shares in Issue as at 31 March 2013
1 227 362 815
Share Options Exercised 14 201 900
Shares in Issue at 31 March 2014
1 241 564 715
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SZL
Volumes up on prior year
Revenue up 6% to $100m
Challenge is to manage productivities
and supply chain to protect margins
Market share in cordials stable
Gains in juice drinks market share
AFDIS
To localise production of ciders this
year
Registering good growth on volume
and profitability
ASSOCIATES
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