PR PRESENTAT NTATION ION TO TO AN ANAL ALYS YSTS TS ON ON RE RESULT LTS S FOR OR TH THE YE YEAR AR TO TO 31 31 MA MARCH CH 20 2019 19
AGE GEND NDA 1. 1. WELCO COME ME AND IN INTROD RODUCTION UCTION PEARS RSON ON GOWERO RO 2. TRAD ADIN ING REVIEW IEW PEARS RSON ON GOWERO RO 3. FIN INANCIAL NCIALS MATTS TTS VALEL ELA 4. DIS ISCU CUSSIO ION/QUE /QUESTION STIONS ALL ALL 5. REFRE RESHMENTS SHMENTS ALL ALL
VOL OLUME ME BE BEVE VERAGE GE CA CATE TEGO GORY LAGE LA GER R BEE EER • Gr Grew w by y 31 31% % SOFT FT DRI RINKS KS • Declined clined by 44 y 44% SORG RGHUM HUM • Overal rall volume lume gr grew by 5% y 5% BEE EER • Chi hibuku uku Super per gr grew w by 24 y 24%
TRADI DING NG EN ENVIR IRONM ONMENT ENT NIN INE E MO MONTHS THS OF OF STABLE ABLE PR PRIC ICING ING Visible election related spending. Agriculture and mining drove disposable incomes. Liberal fiscal and monetary policies provided liquidity and encouraged consumption. Foreign currency was accessed from formal banking channels and credit facilities. The benefit derived from sourcing currency from formal channels ensured stable pricing and affordability. Strong demand on the back of affordable prices. Product supply depended on access to foreign currency which became severely constrained from October onwards.
Cont … TRADI DING NG EN ENVIR IRONM ONMENT ENT SECOND COND HALF F OF OF TH THE YE YEAR Tighter fiscal spending and the introduction of the 2% IMT tax. Initial separation of RTGS and USD balances followed by formal devaluation of the RTGS balances. Loss of consumer purchasing power by operation of the law, RTGS balances and wages not converted at the new exchange rate. Increased foreign currency shortages and related cost escalations. Upward adjustment of RTGS prices in sympathy with exchange rates since February.
VOL OLUME ME PE PERFOR ORMAN MANCE CE SUMM MMAR ARY Y % Cha hang nge e Actual ual Volum ume on n Prior ior Cat ategor ory 000hl hl Y ear ar 1. BEVER VERAGES GES (HLS S 000) 1.1 Clear Beer 2 014 31 1.2 Sorghum Beer 3 722 5 1.3 Sparkling Beverages 797 797 (44) 1.4 Alternative Beverages 112 112 (41) Total al Excluding uding Za Zambia ia 6 645 (1) 1.5 National Breweries 1 053 - Total 7 741 11 2. Mal alt Tonn nnag age 30 590 18
LAGE LA GER BE BEER VOL OLUME ME PE PERFOMAN OMANCE CE BY QU Y QUAR ARTER TER 700 700 $120 $12 $98 8 576 576 600 600 571 571 $89 9 $10 $100 535 535 523 523 505 505 505 505 500 500 456 456 451 451 $80 $80 416 416 403 403 $82 2 400 400 358 358 $77 7 $60 $60 323 323 300 300 $40 $40 200 200 $20 $20 100 100 0 $0 $0 Quart Qua rter 1 r 1 Qua Quart rter 2 r 2 Qua Quart rter 3 r 3 Qua Quart rter 4 r 4 F1 F13 F1 F18 F1 F19 F1 F19 9 Revenu evenue - $m e - $m F1 F13 3 Revenu evenue - $m e - $m
TRAD TR ADING NG REVI VIEW W - LA LAGE GER BE BEER MI MIX 2 500 2 5 00 27% 27% 2 000 2 0 00 28% 28% Prem Premiu ium 1 5 1 500 00 Main ain Stre Stream am 58% 58% 62% 62% 1 0 1 000 00 Econom Eco nomy 14% 14% 500 50 11% 11% 0 0 F19 F19 F18 F18
LA LAGE GER BE BEER • Firm demand allowing the division to leverage scale. • Both factories operated at capacity till December. • Sufficient barley intake to cover domestic volumes. • Growth in premium brands (Zambezi/Castle Lite) and one way packs. • Intermittent production stoppages on account of imported raw materials particularly between October to December.
SOR ORGH GHUM UM BE BEER VOL OLUME PE PERFOR ORMANC MANCE E BY QU Y QUAR ARTER TER 1200 120 $80 $80 1067 1067 1021 1021 $67 $67 $70 $70 $58 $58 100 1000 933 933 930 930 893 893 846 846 $60 $60 $56 $56 804 804 787 787 $46 $46 800 800 $50 $50 $44 $44 $48 $48 600 600 $40 $40 $40 $40 $43 $43 $30 $30 400 400 $20 $20 200 200 $10 $10 0 $0 $0 Qua Quate ter1 Qua Quate ter2 Qua Quate ter3 Qua Quate ter4 F18 F18 F19 F19 F19 F19 Rev Revenue ue - - $m $m F18 F18 Rev Revenue ue - - $m $m
TR TRAD ADING NG REVI VIEW W - SOR ORGH GHUM M BE BEER MI MIX HLs ‘000 71% 71% 1 70 1 700 84% 84% 51% 51% 1 200 1 20 Chibuku Sup Chibuku Super er Standard Standard 16% 16% 700 700 29% 29% 49% 49% 200 200 F19 19 F18 18 F19 - 19 - Zambia Zamb ia
SOR ORGH GHUM UM BE BEER • Strong demand during the second and third quarter. Satisfactory performance of the relaunched 1.5l Scud – affordable offering • complementing capacity constraint on Chibuku Super. Supply bottle-necks on packaging materials (PET and HDPE Material) due • to foreign currency availability. Chibuku Super capacity fully extended and plans are afoot to break ground • on a new brewery in Rusape. Zambia - volume swing to Chibuku Super. Focus on strategies to • differentiate product from cluttered competitor offerings.
SPARK RKLI LING NG BEV EVER ERAGES GES VOLUME E PE PERF RFORM ORMANCE ANCE BY Q Y QUAR ARTER TER 438 438 396 396 329 329 318 318 273 273 268 268 151 151 44 44 Quarter uarter 1 1 Quarter uarter 2 2 Quarter uarter 3 3 Quarter uarter 4 4 F18 18 F19 19
TR TRAD ADING NG REVI VIEW- SPAR ARKL KLING ING BE BEVE VERAGE GES S MI MIX HLs ‘000 1 600 42% 1 400 1 200 45% 1 000 Convenience pack 800 RGB 600 58% 400 200 55% 0 F19 F18
SPAR ARKL KLING NG BE BEVE VERAGE GES • Experienced severe product shortages due to foreign currency challenges in the second half resulting in 3 months shut down. • Performance not reflective of business potential. • A new trading framework introduced in May 2019 in collaboration with TCCC to address foreign currency and affordability challenges.
AF AFDI DIS – FULL LL YE YEAR AR VOL OLUME ME PE PERFOR ORMAN MANCE CE Actual ual Volum ume % Cha hang nge e on n Cat ategor ory 000li litr tres es Prior ior Y ear ar 1. BEVER VERAGES GES (Lit itres es 000) 000) 1,1 Spirits 3 321 22 1,2 Wines 518 518 (2) 1,3 Ciders 3 856 41 Total al 7 695 28 Su Suppor ort t from m part rtner er Di Dist stell ll in access ssing ng ra raw w materials rials • Pri ricing ng dist storti rtions ons impac acting ting on sa sales •
ASSOCIATES 1. Schweppes hweppes Zim imbab abwe we Li Limit ited ed 1. • 12 months volume decreased by 5%. • Current volume performance impacted by affordability issues. • Improved performance of agri-processing businesses. • Pursuing exports into the region. 2. . Nam ampak pak Zim imbabwe babwe • Due to publish half year results to March 2019.
CO CONT NTEXT T OF OF TH THE FI FINA NANCIA NCIAL L RESULTS TS To comply with SI33/19, we have not adjusted for currency changes in the • Income Statement. 75% of revenue was recorded in the first nine months of the year. • The Company urges users to be cautious in interpreting the Income • Statement on account of non compliance to IAS21. The Balance Sheet has been translated to RTGS$ to enable compliance with • IFRS’s into the future. A generic adverse opinion on the financial statements for non compliance to • IAS21 issued by the Auditors.
VOL OLUME UME & GR GROS OSS S SALES ES PE PERF RFORMANC ORMANCE E FO FOR R TH THE YEAR R ENDING DING 31 31 MA MARCH CH 2019 2019 - ZIM IMBAB BABWE WE GR GROS OSS S SALES ES VOL OLUM UME E ( HL ‘000) (RTGS$m TGS$m) % % Ch Chang nge % Ch % Chang nge Lager ger Beer eer 2 01 2 014 31% 31% 404 404 47% 47% Sor orghum ghum be beer er 3 722 3 7 22 5% 5% 256 256 29% 29% Sof oft t Drinks inks 909 909 (4 (44) 4) 118 118 (37) (37)
ANCIAL HI HIGH GHLI LIGHTS GHTS FIN INANCIAL RE REVEN ENUE UE In Increa eased sed by by 26 26% to % to RTGS$ TGS$ 72 722, 2,4 mil 4 millio lion n (Tur urnov nover er – RTGS S $841,5m ,5m) EBIT EB IT Increa In eased sed by by 68 68% to % to RTGS$ TGS$ 17 175, 5,5 mil 5 millio lion OPE PERATING TING MARG RGIN IN % Up from Up om 20 20,7 ,75% 5% to o 28 28,3 ,34% 4%
FINA NANC NCIAL IAL HI HIGH GHLI LIGHT GHTS S EBI BITD TDA In Increase rease by 58 y 58% % to RT RTGS GS$ $ 212,4 2,4 mil illion lion ATTRIBU RIBUTAB TABLE LE IN INCOME OME In Increased reased by by 58 58% t % to o RT RTGS GS$ $ 14 140, 0,7 mil 7 millio lion EA EARN RNING INGS S PE PER SH R SHARE RE Increased In reased by by 55 55% t % to o RT RTGS GS 11 11,1 ,19 cents nts DIV IVIDEN IDEND D PE PER R SHARE RE Nor orma mal l di divid idend end pa paid id - RT RTGS GS 9, 9,50 50 cents nts Spe pecial cial di dividend vidend pa paid id - RT RTGS GS 4, 4,50 50 cents nts
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