National Breweries Plc HY 2015 financial results
National Breweries Plc listed on the Lusaka Stock Exchange has released its half year results. Check out insights into this company in their presentation which appears below. Sign up to the www.theinvestormailinglist.com to receive earnings presentations of all listed companies in Africa by email
Published on: Mar 3, 2016
Transcripts - National Breweries Plc HY 2015 financial results
Unaudited Interim Results
30 September 2014
The Board of Directors of National Breweries Plc, in compliance with the requirements of
the Securities Act No.38 of 1993 and the Listing Requirements of the Lusaka Stock
Exchange, is pleased to announce the unaudited results of the company for the six
months ended 30 September 2014.
Six Months to 30 September
30-Sep-14 30-Sep-13 %
K'000 K'000 Change
Volumes (Hls’000) 1,124 1,100 2%
Net Producers Revenue 206,686 191,845 8%
Gross Profit 84,803 72,571 17%
Profit from ordinary activities before
exchange losses, interest and taxation
Operating exchange losses
Operating profit (EBITA) 30,819 25,069 23%
Profit before tax 31,352 26,080 20%
Income tax (11,435) (9,730) 18%
Profit after tax 19,917 16,350 22%
Earnings per share (Kwacha) 3 1 6 . 14 259.52 22%
BALANCE SHEET Six months to September 30-Sep-14 30-Sep-13 K'000 K'000 ASSETS EMPLOYED Property, plant and equipment 164,610 79,431 107% Current assets 119,004 93,520 27% Total assets 283,614 172,951 64% EQUITY & LIABILITIES Shareholders funds 122,067 76,144 60% Current liabilities 161,547 96,807 67% Total equity and liabilities 283,614 172,951 64%
National Breweries Plc recorded a profit after tax of ZMK19.9 million for the six months, 22% up on prior year.
While we continued to operate in a highly competitive market, volume performance for Chibuku increased by 2% on prior year. The muted volume increase reflects the fact that we remain constrained in our Shake Shake production capacity and that the increase in price on our Chibuku Super product in March 2014 has led to a softening of demand for this product since the previous financial year. In addition, we saw a general reduction in consumer disposable income as economic conditions tightened in the period. The business did, however, benefit to some extent from Clear Beer consumers down trading to Opaque Beer as a result of the excise related price increase on Clear Beer on 1 January 2014. The majority of down trading, however, was into the illegal bulk Opaque market.
Revenues increased 8% on prior year due to the 11% price increase on Chibuku Super, which accounted for a total of 13% (F14 - 16%) of the total Chibuku sales in the year. Gross Margin grew by 17% on prior year reflecting this price increase and significant input cost savings. Operating profit increased by 23% on prior year, reflecting the improved gross margin performance and tight cost controls.
National Breweries Plc contributed a total of K52.5 million in tax for the six months, comprising Corporate, Excise, VAT, employee and other taxes.
We commenced our investment in the Lusaka Brewery rebuild and Chibuku Super packaging line in the previous financial year. A total of K185 million has been committed to the new facility which we expect to be complete in the first quarter of 2015. This will be financed from cash and intergroup financing.
We have had a very challenging first half of the year with muted growth in volumes mainly due to shifts in economic fundamentals of the market. The unfair market competition, which has been characterized by illegal bulk producers, has persisted in distorting the market. We nonetheless remained focused on differentiation through product innovation and quality. Prospects We have great confidence that Zambia’s economy will continue to grow in the near to medium term led by the country’s continued investment in strategic infrastructure projects and growth in the agriculture and mining sectors. As a sign of our confidence in the economic fundaments of our country, we are investing K185 million in a new brewery in Lusaka. We therefore expect a good performance for the business in the last quarter of our financial year on account of the expected improvement in product availability as the brewery comes on line. Sustainable Development National Breweries Plc, in collaboration with Zambian Breweries Plc, has launched a new sustainable development ambition called Prosper. Stemming from the Ten Priorities for sustainable development that have guided us in the past eight years, Prosper is a more focused strategy that is aimed at putting sustainability at the core of our business. National Breweries Plc aspires to protect and grow its business by stepping up its contribution to local communities even further. We have decided to expand and scale up the partnership approach that we have developed over the years to deliver for everyone. Under Prosper we aspire to achieve five imperatives that are aligned to five shared opportunities as follows: 1. A thriving world, where incomes and quality of life are growing; 2. A sociable world, where our beers are developed, marketed, sold and consumed in a way that maximises individual and societal wellbeing; 3. A resilient world, where our businesses, local communities and ecosystems share uninterrupted access to safe, clean water;
4. A clean world, where nothing goes to waste and emissions are dramatically lower; 5. A productive world, where land is used responsibly, food supply is secure, biodiversity is protected and brewing crops can be accessed at reasonable prices.
As part of the SABMiller Sustainable Development Plan, National Breweries Plc has continued to implement socio-economic programmes that are aimed at reducing poverty in the communities in which we operate and creating shared value among stakeholders.
For queries, kindly contact Luke Njovu, Director of Corporate Affairs on: Tel +260 211 246555 246442/3; +260 962 249200
Copies of the press release are available from the registered office:
National Breweries Plc.
P.O Box 35135
Plot 6438 Mungwi Road
By Order of the Board
19 November 2014
NATIONAL BREWERIES PLC
At a Board Meeting held on 06th November 2014, the Board resolved not to recommend a dividend, given the significant capital expenditure programmes underway.
By Order of the Board
19 November 2014