business highlights j. ayo ajayi, managing director/ceo may 2005
TRANSCRIPT
Business Highlights J. Ayo Ajayi, Managing Director/CEO May 2005
Outline
Financials Storm in the marketplace Facts behind the figures Innovation and Change Winning With People Digging new wells – the future
Group Performance Turn-Around
0
5
10
15
20
25
30
1997 1998 1999 2000 2001 2002 2003 2004
NPS
P.A.T.
Group Performance Turn-Around
1999 (N’m)
2000 (N’m)
2001 (N’m)
2002 (N’m)
2003(N’m)
Sales to third parties 8,407 8,478 13,238 17,519 20,844
Profit from Operations (578) 278 806 1,460 1,548
Exceptional items 586 111 1,367 179 1,422
Profit after tax 14 106 1,007 1,166 2,185
Earnings per share (Kobo) 3 12 111 128 240
Dividend Per Share (Kobo) 0 0 15 35 60
1999 (N’m)
2000 (N’m)
2001 (N’m)
2002 (N’m)
2003(N’m)
Capital Expenditure 996 1,179 3,121 3,966 2,481
Shareholders’ Funds 4,320 4,507 5,365 6,429 7,920
Net Current (Liabilities)/Assets (1,053) (1,630) (1,822) (3,642) (2,674)
Group Performance Turn-Around
2004 Performance
2004 2003 % Growth
Sales to third parties 25,116 20,844 20.5
Profit from Operations 1,902 1,548 22.9
Exceptional items 517 1,422 (51)
Profit after tax/M.I. 1,570 2,185 (28)
Earnings per share (Kobo)
- Adjusted
137
-
240
191
(43)
Dividend Per Share (Kobo)
- Adjusted
85
-
60
48
42
• Turnover including franchises (2003 = N21,041; 2004 = N26,002)• Reduction in profits from Disposals (divestment program)• EPS – Rights Issue expands share base
2004 Performance
2004 2003%
Growth
Capital Expenditure 1,725 2,481 (30.4)
Shareholder’s Funds 11,150 7,920 41
Net Current (Liabilities)/Assets 840 (2,674)
Dividend History
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20
40
60
80
100
1999 2000 2001 2002 2003 2004
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
1999 2000 2001 2002 2003 2004
Naira
Share Price History (Year End)
Storm in the Marketplace …
Increasing cost of operations – power, fuel, raw materials
High inflation – still double digits at 17.5% average
GSM weakening demand in other sectors Poor road infrastructures High cost of funds – re-bank consolidation
Storm in the Marketplace …
Strikes occasioned by high fuel prices
Dearth of good and committed people
Still poor image of Nigeria to attract FDIs
… there are still unmet gaps and opportunities to exploit!
Facts Behind the Figures
Strategies …
Growing existing businesses (opportunities exist!)- Mr. Bigg’s restaurants–122 (vs 97 end 2003)- production facility expansion – Ice cream, Feeds- customer focus/market knowledge- improving product availability
Facts Behind the Figures
… Strategies
Driving operational efficiencies- supply chain- distribution/logistics- improving processes/quality- new maintenance culture
Rights Issue- reducing the debt burden by N1.7billion
- preparing for real growth
More Cash business- franchising – Mr. Bigg’s, Innscor brands- debt collection
Facts Behind the Figures
Winning With People …
Attracting good people and retaining them is key success factor
- improved corporate performance- competitive remuneration- performance-driven culture- retention strategies – career path,
training & development, welfare
Digging new wells … creating the future!
Strategies … 1. Focused diversification in 2 or 3 core
areas (Vision & Mission-driven)
- Food and food retail
- Logistics
- Expanding QSRs portfolio to increase customer base – Bigg’s, Menu Masters
- Manufacturing upgrade – snacks, ice cream
- Broadening third party logistics – MDS
Digging new wells … creating the future!
Digging new wells … creating the future!
Strategies contd.
2. Consolidate market shares in existing business
3. Supply Chain Excellence
N4.3billion Proceeds ….. Rights Issue
N’m Fast Food (Restaurants
(Mr. Bigg’s + Innscor Brands) 1,780
Expansion of MDS 540
Upgrade of IT & FinancialSystems and Controls 300
Debt Reduction 1,720
2005 & 2006 Forecast
2005 2006
Capital Expenditure 3,250 3,000
Shareholders’ Funds 13,329 15,152
Net Current (Liabilities)/Assets
400 450
2005 & 2006 Forecast
2005 2006
Sales to third parties 30,579 37,000
Profit from Operations 2,405 3,006
Exceptional items 120 50
Profit after tax 1,811 2,200
Earnings per share (Kobo) 141 172
Dividend Per Share (Kobo) 100 100+
* Turnover including franchise (2005 = N32,279; 2006 = N39,900)
Thank you very much!
… climbing to the top!