AGENDA 1. WELCOME AND INTRODUCTION PEARSON GOWERO 2. TRADING - - PowerPoint PPT Presentation

AGENDA

1. WELCOME AND INTRODUCTION PEARSON GOWERO

• 2. TRADING REVIEW

PEARSON GOWERO

• 3. FINANCIALS

MATTS VALELA

• 4. DISCUSSION/QUESTIONS

ALL

• 5. REFRESHMENTS

ALL

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 Population 1,614,941 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

F14 F13 Growth 6,904 6,887 0%

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 ‘000 500 1 000 1 500 2 000 2 500 F10 F11 F12 F13 F14 1 148 1 608 1 981 2 060 1 697

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 ‘000 500 1000 1500 2000 2500 F13 F14 4% 7% 77% 72% 19% 21% Premium Main Stream Economy

SPARKLING BEVERAGES FIVE YEAR VOLUME PERFORMANCE

HLs ‘000 500 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 4th quarter. Harare had an acute water problem leading to stock outs in 4th 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

TRADING REVIEW - SPARKLING BEVERAGES MIX

HLs ‘000 500 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

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 1000 2000 3000 4000 F13 F14 10% 100% 90% Chibuku Chibuku Super

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 Drinks DELTA BEVERAGES 99 84 98

PLASTIC PACKAGING FIVE TONNAGE PERFORMANCE

Tonnes 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.

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

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)

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

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$000’s MARCH 2013 US$000’s 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

ANALYSIS OF ATTRIBUTABLE INCOME

2014 US$000’s 2013 US$000’s Profit for the half year from

• perations 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

STATEMENT OF FINANCIAL POSITION

ASSETS 2014 US$000’s 2013 US$000’s 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$000’s 2013 US$000’s 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 Shareholder’s 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

CASH FLOW

2014 US$000’s 2013 US$000’s 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

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

THANK YOU