Results for the year ended December Presentation to Investors and Analysts February 2017

Transcription

1 Results for the year ended December Presentation to Investors and Analysts February 2017 Freight and Logistics Fishing Industries Commercial and Industrial Service And Products Automotive Food and Distribution

2 INTRODUCTION AND BUSINESS OVERVIEW Bidvest Namibia listed on 26 October 2009 on the Namibian Stock exchange. Our shareholding is split as follows Companies 8% Individuals 1% Other Pension and Provident Funds 14% Directors 1% The Bidvest Group Limited 52% Government Institution Pension Funds 11% Ovanhu Investments (Pty) Limited 13% 2

3 MAIN HIGHLIGHTS First half year 2017 Financial results disappointing given challenges facing the fishing, food and logistics industries Bidfish worse than expected, horse mackerel market hard currency prices fell 11.2%, sizes caught were small and catch rate declined Quota caught was purchased, affecting the cost price negatively Pilchard as a resource remains a concern Freight & Logistics lacked project activity during the period and no project is on the horizon Food & Distribution felt the slowing of economy as well as operational efficiencies which affected the overall result negatively. Commercial and Industrial Services and Products reflects a stable performance Automotive division harshly felt the drop in consumer and government spending in the new vehicle market. 3

4 BUSINESS OVERVIEW Bidvest Namibia Corporate/Properties/IT Bidfish Automotive Food & Distribution Freight & Logistics Commercial & Industrial Products & Services 4

5 Financials

6 THE KEY 2017 NUMBERS 6,2% to NAD2bn Revenue 81,7% to NAD21,8m Trading Profit 79,2% to 9,6ps 78,1% to 9,7cps EPS (cps) HEPS (cps) 80% to 4,0cps Dividend (cps) 2,5% to 727cps Net Asset Value (cps) 6

7 FINANCIAL OVERVIEW Bidvest Namibia delivered very disappointing results given the severe challenges that were faced in Fishing, Food & Distribution, Freight & Logistics Fishing faced similar challenges as in the prior year with decreased quotas and expensive quota purchase costs. In addition, horse mackerel sales prices fell due to oversupply in the traditional markets and smaller catch sizes. Lower catch rates were also experienced. Freight & Logistics is still conquering a low activity no project season with no improvements on the horizon Food and Distribution was hit by lower consumer spending but also had to deal with inefficiencies in its structures and high customer claims. The Industrial and Commercial Products and Services Segment all felt the economic climate with Voltex still struggling to find its turnaround point. The financial position remains strong and large cash reserves remain in place. 7

8 FINANCIALS Consolidated statement of Profit and Loss and Comprehensive Income Half year ended December Note: IFRS compliant Unaudited Unaudited % Change NAD000 s Revenue ,2% Gross profit ,5% Gross profit margin % 14,3% 17,0% Other income ,8% Trading profit ,7% Share of joint venture/associate (1 034) ,8% Revenue increased slightly due to organic growth in some of the divisions. Rates of exchange came in at an average of US$1 = N$13,99 vs US$1 = N$13,49 in 2015 Other income in the prior year includes N$ 7 million received in NPI settlement. 8

9 FINANCIALS Consolidated statement of Profit and Loss and Comprehensive Income Half year ended December Note: IFRS compliant Unaudited Unaudited % Change NAD000 s Profit before tax ,5% Taxation (1 646) (26 830) 93,9% Profit for the year ,3% Profit attributable to non-controlling interest ,1% Profit attributable to shareholders of the company ,1% Headline earnings ,1% HEPS (cps) 9,7 44,2 78,1% Dividends (cps) 4,0 20,0 80,0% Taxation very low. Profits generated in Angolan Fishing subsidiary, which currently has ANIP status. 9

10 FINANCIALS Consolidated statement of financial position Half year ended December Note: IFRS compliant Unaudited Unaudited % Change NAD000 s Non-current assets ,4% Current assets ,1% Total assets ,6% Capital and reserves ,1% Non-current liabilities ,4% Current liabilities ,9% Total equity and liabilities ,6% Current assets/current liabilities 2,6 2,7 Current ratio still reflecting strong liquidity 10

11 FINANCIALS Consolidated cashflows for the half year ended December N$ million 2015 N$ million Cash generated by operations before working capital changes Working capital utilised (95.90) (60.30) 6.60 Net finance income (46.20) Taxation paid (58.50) (87.60) Distributions (112.60) (25.20) Cash flows of investment activities Cash flows from financing activities (385.60) (14.40) (150.00) (100.00) (50.00) (600.00) (400.00) (200.00)

12 FINANCIALS Segment revenue REVENUE 2016 REVENUE % 1% 20% Automotive 13% 19% 7% Fishing 8% Food & Distribution 33% 27% Freight & Logistics Commercial & Industrial Services & Products 34% 26% Corporate Services & Properties 12

13 FINANCIALS Segment trading profit TRADING PROFIT 2016 TRADING PROFIT ,853 16,493 20,265 (9,214) (2,134) 16,287 3,878 4,312 9,233 13,538 3,547 (2,314) Automotive Fishing Food and Distribution Freight & Logistics CommerciaL & Industrial Products & Services Corporate Services & Properties 13

14 HISTORIC PERFORMANCE HEADLINE EARNINGS PER SHARE DIVIDENDS PER SHARE H1 H2 H1 H

15 Divisional Review Bidfish

16 BIDFISH BUSINESS OVERVIEW Namsov Fishing Enterprises (Horse mackerel) Namibia Sea Products (Pelagic) Tetelestai (Aquaculture) Pesca Fresca (Pelagic Angola) Trachurus (Horse mackerel) Twafika (Monk) Carapau (Horse Mackerel) Industria Alimentar Carnes De Mocambique 69.55% 69.55% 69.55% 35.47% 69.55% 52.23% 17.38% 27.82% 25% 16

17 BIDFISH Horse mackerel Smaller fish sizes and decline in catch rates impacted harshly on the profitability In addition, high quota purchase costs create a steep decline in the trading profit of the division Market prices remain pressurized due to the economic climate in traditional markets One vessel is up for sale to match the quota allocation with catch capacity Angola Pesca Fresca did well due to strong local fishmeal and international fish oil prices Local currency devaluation against the USD affects the results negatively Pilchards The resource remains a concern No pilchard canning effort during the past 6 months Aquaculture Due to colder temperatures, stock did not grow as expected Mozambique Local currency devaluation against the USD affects the results negatively 17

18 BIDFISH OUTLOOK Take on the individual fishing businesses Namsov, Carapau (Horse Mackerel) Namsea (Pilchards) Twafika (Monk) Comet / Pesca Fresca (Angola) Tetelestai (Oysters) Downstream Distribution Mozambique JV 18

19 BIDFISH OUTLOOK Horse mackerel Concern over excess catch effort in Namibia and Angola on shared resource New partner liaisons are being explored Concern over decline in fish size mix caught Concern on markets, foreign currency shortage and buying power Next six months should be less fishing on purchased quota / more own quota allocations Angola Operations expected to improve Currency issues remain challenging Pilchards Resource stability remain a concern Challenged with reduced TAC and quotas Glenryck Brand Glenryck brand positioned to yield benefits 19

20 BIDFISH OUTLOOK (continued) Aquaculture Oyster business continues to seek more profitable solutions Mozambique (downstream distribution) Credible partner, performance as expected Cash positive from year 1 Currency issues remain challenging 20

21 Divisional Review Commercial and Industrial Services and Products

22 CISP Commercial and Industrial Services and Products BUSINESS OVERVIEW Cecil Nurse Manufacturer and retailer of office furniture and shop fittings Kolok Distributor of printer consumables and hardware Minolco Licensed distributor of Konica Minolta branded copiers, printers, etc Plumblink Specialised plumging services Rennies Travel Established travel management company Steiner Hygiene rental equipment and consumables Voltex Wholesaler and retailer of electrical equipment Waltons Wholesaler / Retailer of stationery, office furniture and corporate gifts 22

23 CISP Commercial and Industrial Services and Products Cecil Nurse had a tough half year with margins under pressure due to large projects and less manufacturing in their own facility. Kolok has been struggling with fierce competition in their market. Minolco performed well with increased business from internal rentals rather than outright sales Plumblink has done extremely well in a very competitive market. They will open a branch in Swakopmund in February. Rennies Travel had a slow half year, overrides are still outstanding from the major airlines. Steiner has done well in line with prior year with a growing hygiene rental customer base and the added pest control services Voltex continued to struggle in a very competitive market. The building and construction industry has been put to a hold due to no rain, which in turn affected Voltex like many other suppliers. Efforts continue in their turnaround plans. Waltons is continuing to grow on the Revenue front, opening a branch in Tsumeb, relocating other branches to gain easier access to customers. 23

24 CISP OUTLOOK Take on the Commercial businesses Cecil Nurse Kolok Minolco Plumblink Rennies Travel Steiner Voltex Waltons 24

25 CISP OUTLOOK The economy has slowed down significantly and it is felt in every entity in this division The lack of rain and income in the Northern part of Namibia could be felt in the spending in each area Government spending has been tightened and large projects are on hold. The aim is to remain competitive and to be the preferred supplier to the nation Bidvest Namiba Plumblink is opening a branch in Swakopmund More acquisitive growth is explored 25

26 Divisional Review Freight and Logistics

27 FREIGHT AND LOGISTICS BUSINESS OVERVIEW Freight & Logistics Woker Freight Services Supply Chain Logistics Marine Services Ocean Liner Services MACS Luderitz Bay Shipping & Forwarding Cargo Management Warehousing & Container Terminal Rennies Material Handling Walvis Bay Stevedoring Walvis Bay Airport Services Trading Lubrication Specialists Monjassa 27

28 FREIGHT & LOGISTICS There was no project activity during the half year under review Projects have a positive spin-off to all areas in the division, therefore all entities in this division are facing challenging times during this zero project year The business has been streamlined and is operating as efficiently as possible Retrenchments have been limited, resources have been redeployed, resignations not filled unless absolutely necessary The oil and gas industry is expected to remain quiet for the near future. Large tenders are being submitted but to date have not been allocated. Manica is well positioned to be an excellent all-in-one service provider for any large project emerging 28

29 FREIGHT AND LOGISTICS OUTLOOK Take on the Freight and Logistics businesses Manica Group Namibia Focus remains on containing costs and to compact the business Simultaneously a drive to secure projects is underway Current momentum is being preserved 29

30 Divisional Review Food and Distribution

31 FOOD AND DISTRIBUTION Taeuber & Corssen Consumer spending has been tightened. Operational challenges are affecting the bottom line. Costs in this division are too high and need to be contained. Claims have been identified to be an area of concern. Caterplus The quota of imported chicken remains a challenge, alternative proteins are being sought The franchised products business remains slower than expected. Availability of several new products appear lucrative 31

32 FOOD AND DISTRUBUTION OUTLOOK Take on the Food and Distribution businesses Taeuber & Corssen Caterplus T&C will concentrate on their costs and claims scenario for the months to come. Caterplus is striving to reduce claims from customers and to focus on cleaning out old stock 32

33 Divisional Review Automotive

34 AUTOMOTIVE BUSINESS OVERVIEW Novel Motor Company 34

35 AUTOMOTIVE Novel has performed below expectations mainly due to the new vehicle market plummeting. Government spending has come to a hold, also affecting the number of vehicles sold. As a result, the pre-loved /used vehicle market had an increase, however did not make up for the lost bottom line. The Walvis Bay branch has had some struggling times but is now under new management and should recover. 35

36 AUTOMOTIVE OUTLOOK Take on the Automotive business Novel Motor Company The new vehicle market will not recover soon but with the increase in the used vehicle market, a positive upswing in revenue is expected. 36

37 Conclusion