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SUMMARISED RESULTSfor the year ended 28 February 2015
AGENDA
PERFORMANCE HIGHLIGHTS
MILESTONES INDUSTRY TRENDS AND DRIVERS
BUILDING CAPABILITY
GROUP STRATEGYFINANCIAL RESULTS PROSPECTS
MILESTONES
Achieved 2015 vision
“To become Africa’s first choice branded food services franchisor”
Our continued success is based on a winning culture, underpinned by:
Solid strategy
Operational discipline
Talented people
PERFORMANCE HIGHLIGHTS
STRONGRESULTS
Notwithstanding weak economic climate,
stressed mainstreamconsumer and highly
competitiveenvironment
14thconsecutive year
of recordturnover and
profits
Turnover exceeds
R3 billionProfit exceeds
R450million
First timeever
Operating margin of
20.5%
Best ever
Headline earnings per share
15%increased
Total dividendsto shareholders
355cents per share
18%up
Acquisition of
75%controlling share
in Cater ChainFood Services
Record newstore openings
258Franchise network now in excess of
2 500restaurants
Successfulpilot of the
Total / Thruppsmodel
Commissioned
automatedpie plant in Lagos,
Nigeria
INDUSTRY TRENDSAND DRIVERS
More customers, visiting less and spending more
Smaller repertoire ofpreferred brands visited
Quick Service restaurants gainedat expense of Casual Dining
Consumer focus on premiumisation, customisation,
convenience and value
Intensified competitor activity: every-day discounting and
ritual promotions
INDUSTRY TRENDS AND DRIVERS
BUILDING CAPABILITY
BUILDING BRAND CAPABILITY
Domestic International Total
SYSTEM–WIDE SALES GROWTH
18.0%
10.4%9.7%
Domestic International Total
LIKE-ON-LIKE SALES GROWTH
5.2%4.1%4.0%
Steers Wimpy Debonairs Pizza FishAways Mugg & Bean Emerging Brands
NEW RESTAURANTS OPENED
EMERGING BRANDS
258
To
tal
51
16
68
55
28
40
Steers Wimpy Debonairs Pizza FishAways Mugg & Bean Mr Biggs Milky Lane &Wakaberry
Fego Café andEuropa
Emerging Brands
FRANCHISE NETWORK
EMERGING BRANDS
2 545
To
tal
588 616
508
215180 153
10155
129
TRADING FOOTPRINT
India 2
Malawi 6
Mozambique 3
UAE 5
Egypt 6
Mauritius 20
Swaziland 7
Botswana 29
South Africa 2 100
Namibia 51
Zimbabwe 8
Zambia 37
DRC 2
Ivory Coast 5
Nigeria 162
Sudan 6
UK 84
Total restaurants
Kenya 11
2 545Angola 1
South Africa 2 100Rest of Africa 359United Kingdom 84India 2
BUILDING LOGISTICS CAPABILITY
Western Cape
Midrand
Nelspruit
Bloemfontein
Cape Town Port Elizabeth
Pinetown
Crown Mines
Gauteng KZN Western Cape Eastern Cape Free State Mpumalanga
REVENUE GROWTH - LOGISTICS
Mpumalanga
15%
To
tal14% 15%
13%15%
12%
24%
Free StateEastern CapeWestern CapeKwaZulu-NatalGauteng
Commissioning ofCrown Mines
Distribution Centre
Centralised demand planning function implemented and institutionalised
Centralised route planning programme rolled out to
all regions
LOGISTICS HIGHLIGHTS
BUILDING MANUFACTURING CAPABILITY
MeatProcessing
Plant
Bakery Plant Sauce & SpicePlant
Ice CreamCompany
Fruit JuiceCompany
CoffeeCompany
Coega CheeseCompany
Great BakeryCompany
Choice MeatsCompany
REVENUE GROWTH - MANUFACTURING
25%
To
tal
106%104%
119%
31%
1%
16%16%16%
6%
Take-on of KZN region’s previously outsourced
bakery products
Take-on of Wimpy’schoice meat products
Take-on of Wimpy’sspeciality bakery
products
Expansion ofMugg & Bean’s retail range
inclusive of capsules
MANUFACTURING HIGHLIGHTS
FINANCIAL RESULTS
F 2015 % CHANGE
Revenue (Rm) 3 283 16
Operating profit (Rm) 672 19
Cash generated before changes in working capital (Rm) 717 19
Earnings per share (cents) 468 15
Headline earnings per share (cents) 467 15
Total dividends per share (cents) 355 18
Net debt : equity (%) (7) (2) (py)
Dividend cover (times) 1.3 1.4 (py)
Return on equity (%) 35 36 (py)
SALIENT FEATURES
Rm F 2015 F 2014 % CHANGE
Revenue 3 283 2 826 16
Cost of sales (1 832) (1 599) 15
Gross profit 1 451 1 227 18
Selling and administrative expenses (779) (661) 18
Operating profit 672 566 19
Share of profit of associates 8 5 48
Net interest paid - (3) (92)
Profit before taxation 679 567 20
Taxation (195) (162) 20
Profit for the year 485 406 20
INCOME STATEMENT
1,6
85
1,8
78
2,1
56
2,5
16
2,8
26
3,2
83
0
500
1000
1500
2000
2500
3000
3500
2010 2011 2012 2013 2014 2015
REVENUE
Rm
30
8
35
8
41
3
46
6 56
6 67
2
18.3
19.1 19.1
18.5
20.0
20.5
17
18
19
20
21
0
100
200
300
400
500
600
700
800
2010 2011 2012 2013 2014 2015
OPERATING PROFIT
Rm %
Rm F 2015 F 2014 Move
Assets
Property, plant and equipment 209 196 13
Intangible assets 923 880 43
Investments in associates 58 53 5
Working capital 147 128 19
1 337 1 257 133
Funding
Equity 1 417 1 235 182
Net borrowings (126) (26) (100)
Deferred liabilities and current tax balances 46 48 (2)
1 337 1 257 80
STATEMENT OF FINANCIAL POSITION
-
100
200
300
400
500
600
700
800
900
Opening cash Cash fromoperations
Interest Tax Dividends Capex (net) Funding raised(net)
Closing cash
CASH FLOW
Opening Cash
713Cash from operations
Interest
91 126
(96)
Capex (53)
ClosingCash
Funding raised
(327)
Dividends
(202)
Tax
Rm
6.27.4
8.7
10.2
12.4
14.227.5
14.3
9.78.1
-2.1 -7.2
-10
-5
0
5
10
15
20
25
30
0
2
4
6
8
10
12
14
16
2010 2011 2012 2013 2014 2015
NAV per share R Debt/Equity %
EQUITY RATIOS
Debt/Equity %
NAV per share (R)
38.2
42.5 44.5 43.6
46.1 50.0
36.1 35.7 34.5
35.9 36.0 35.1
2.1 2.2
2.3 2.4 2.3 2.4
1.8
1.6 1.4 1.4 1.4 1.3
0.7
0.9
1.1
1.3
1.5
1.7
1.9
2.1
2.3
2.5
2.7
30
35
40
45
50
55
2010 2011 2012 2013 2014 2015
RONA % ROE % NAV times Dividend cover times
RATIOS
times%
Rm F 2015 F 2014 % CHANGE
Franchising and development 615 538 14
Supply Chain 2 507 2 145 17
Manufacturing 1 258 1 011 24
Logistics 2 223 1 938 15
Corporate 2 1 100
South Africa 3 124 2 684 16
International 159 142 12
Rest of Africa 57 50 14
UK 102 92 11
3 283 2 826 16
SEGMENTAL ANALYSISREVENUE
Rm % OF TOTAL F 2015 F 2014 % CHANGE
Franchising and development 55 365 325 12
Supply Chain 39 262 204 28
Manufacturing 26 173 127 36
Logistics 13 89 77 16
Corporate - 1 1 -
South Africa 94 628 530 18
International 6 44 36 22
Rest of Africa 3 23 23 -
UK 3 21 13 62
100 672 566 19
SEGMENTAL ANALYSISOPERATING PROFIT
% F 2015 F 2014
Franchising and development 59.4 60.4
Supply Chain 10.4 9.5
Manufacturing 13.7 12.5
Logistics 4.0 4.0
South Africa 20.1 19.7
International 27.3 25.3
Rest of Africa 40.0 46.1
UK 20.1 14.0
Group 20.5 20.0
SEGMENTAL ANALYSISOPERATING MARGIN
18.3 19.1 19.1 18.5 20.0 20.5
24.2 24.2 23.7 23.3 23.4 23.7
42.5 43.3 42.8 41.8 43.4 44.2
0
5
10
15
20
25
30
35
40
45
50
2010 2011 2012 2013 2014 2015
Operating profit margin % Expense to turnover % Gross profit margin %
PRODUCTIVITY AND MARGIN RATIOS
%
11.815.3 15.3 13.6
12.5 13.7
3.0 3.0 3.5 3.5 4.0 4.0
62.5 60.9 60.2 60.1 60.4 59.4
18.3 19.1 19.1 18.5 20.0 20.5
0
10
20
30
40
50
60
70
2010 2011 2012 2013 2014 2015
Manufacturing Logistics Domestic Franchising Group
OPERATING MARGINS BY DIVISION
%
GROUP STRATEGY
STRATEGY
To become one of the leading branded leisure and consumer product businesses in Africa and
selected international markets by 2020
STRATEGIC INTENT
Our business is focused on building capability and scale across Brands, Logistics and
Manufacturing to position ourselves to compete
aggressively in the leisure and consumer product space
Shape the brand portfolio and ensure our keybrands resonate across all consumer touch
points
Fortify the foundation which exists within Manufacturing and Logistics
Build superior routes to market and drivelowest cost producer status
Win the race to conquer Africa
Engage the competition by strengtheningour gorilla brands
Execute on all aspects of BBBEE
Ensure strong focus on leadership andsuccession planning
Continue to drive the Group’s culture ofhigh performance
Expand the business through diversification
Manage the transition to a fully integratedEnterprise Resource Planning solution
BUILDING GROUP CAPABILITY5 YEAR KEY STRATEGIC THRUSTS
Open 240 new restaurants
Explore table service evening dining acquisition opportunities
and leverage existing casual dining brand occasions beyond lunch
Conclude Steers brand repositioning and take to market
Proceed with roll-out of Total / Thrupps model
Launch new “craft beer restaurant” brand
BUILDING BRAND CAPABILITY
Conclude acquisition of controlling stake in Retail Group Master License business in Botswana
Commence with the revamp of Mr Biggs
Enter GhanaLaunch five new retail variants across Steers,
Wimpy and Mugg & Bean brands
BUILDING BRAND CAPABILITY
Extend business life of Midrand warehouse Leverage Crown Mines Distribution Centre facility
Implement new online replenishment platformfor franchisees
Commence with transition to “24/7/365”business model
BUILDING LOGISTICS CAPABILITY
Extend Coega Cheese plant to facilitate manufacture of cream cheese
Commission serviette manufacturing plantat Midrand
Prepare for take-on of currently outsourced porkand halaal products via recently acquired
Cater Chain Food Services
Conclude improvements to existing FB Ice Cream Company and prepare to take on manufacture of
frozen yoghurt
BUILDING MANUFACTURING CAPABILITY
PROSPECTS
PROSPECTS
The forecast for the economy in the year ahead is conservative
2015/16 will remain tough for consumers – particularly
the Group’s mainstream middle income market
The competitive climate will remain fierce and intensify – including in
Rest of Africa
Growth is expected to be muted, but the Group’s
strong investment proposition will continue to
afford above-average returns for shareholders
YOU’RE IN GOOD COMPANY
Our outlook is optimisticWe foresee revenue and
margin growth opportunities ahead
We will continue to leverage our skills and scale to align with our ambitious long-term
growth plans
Famous Brands’ strategy has delivered in the short-term
and is built for the long-term
QUESTIONS
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