RCL Foods Limited · JSE:RCL
RCL Foods — FY2020 Earnings Presentation
21 slides from RCL Foods's earnings presentation, Aug 31, 2020
Slide 1: Investor Presentation Appendices 31 August 2020
2020 INVESTOR PRESENTATION APPENDICES 31 AUGUST 2020 RESULTS FOR THE YEAR ENDED JUNE 2020
Slide 2: RCL FOODS in Context
INVESTOR PRESENTATION APPENDICES RCL FOODS IN CONTEXT FOOD, LIQUOR INSURANCE BANKING HEALTHCARE INDUSTRIAL INFRASTRUCTURE MEDIA & SPORT & HOME CARE 2
Slide 3: Our Structure
INVESTOR PRESENTATION APPENDICES OUR STRUCTURE 3
Slide 4: Our Business Model
INVESTOR PRESENTATION APPENDICES OUR BUSINESS MODEL (Chicken, Sugar, Grain (Bread, Buns & Rolls and Milling) and Animal Feed) Speciality, Pies Food Partners (Speciality, Pies, Food Partners, Grocery, Baking, Beverages and Added-value Chicken 4
Slide 5: Our Business Profile
INVESTOR PRESENTATION APPENDICES OUR BUSINESS PROFILE RCL FOODS is a leading South African food manufacturer, producing a wide range of branded and private label food products which we distribute through our own route-to-market supply chain specialist, Vector Logistics. Our strategy is founded on a
Slide 6: Our Brands
INVESTOR PRESENTATION APPENDICES OUR BRANDS 6
Slide 7: Sustainability
INVESTOR PRESENTATION APPENDICES OUR IMPACT SUSTAINABILITY Our Sustainable Business Drive is about creating the future. Underpinned by Our Passion, it sets out our response to the most critical social and environmental challenges we face. Our Sustainable Business Drive enables us to secure the futur
Slide 8: Material Financial Impacts
INVESTOR PRESENTATION APPENDICES MATERIAL FINANCIAL IMPACTS CURRENT YEAR CURRENT AND PRIOR YEAR PRIOR YEAR A R266.8m negative impact arising Total impairments of A R105.0m profit on sale of from the COVID-19 crisis and R1 506.3 million were dormant farms in the Chicken relating to additional costs i
Slide 9: Performance
INVESTOR PRESENTATION APPENDICES PERFORMANCE 27.8 REVENUE (Rbn) EBITDA (Rm) 2 224.0 25.9 25.0 25.0 2 046.0 24.4 23.4 1 762.4 1 747.6 19.5 1 636.0 1 525.7 14.2 1 206.1 1 201.0 1 165.7 1 122.2 1 152.2 12.9 13.1 13.3 1 082.2 12.8 12.0 900.4 8.7 688.3 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 20
Slide 10: Our Brands
INVESTOR PRESENTATION APPENDICES OUR BRANDS A FEW OF SOUTH AFRICA’S MUCH LOVED BRANDS PRODUCED BY RCL FOODS 6 BRANDS OVER R1bn 4 BRANDS BETWEEN R1bn AND R400m 5 BRANDS BETWEEN R400m AND R100m 18 BRANDS UNDER R100m 10 "Relative sales (12 Months to June 2020)"
Slide 11: Market Share
INVESTOR PRESENTATION APPENDICES MARKET SHARE MARKET SHARE VOLUME SHARE % FOR THE PERIOD 6MM JUNE 20 12MM JUNE 20 12MM JUNE 19 SOURCE Dogfoods (RCL Brands) 30.7 29.4 26.8 Aztec* Catfoods (RCL Brands) 31.0 29.9 26.0 Aztec Yum Yum Peanut Butter 28.1 26.0 30.5 Aztec Nola Mayonnaise 41.3 40.9 47.7 Aztec
Slide 12: Commodity Prices
3 300 3 550 3 800 4 050 4 300 4 550 4 800 5 050 5 300 5 550 5 800 Jul-18 Aug-18 Sep-18 Oct-18 R4 390 AVG Price Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 1 500 2 000 2 500 3 000 3 500 Jun-19 Jul-18 4 000 Jul-19 Aug-18 9.2% Aug-19 Sep-18 Sep-19 Oct-18 F19 R2 522 Oct-19 COMMODITY PRICES Nov-18 A
Slide 13: Groceries
INVESTOR PRESENTATION APPENDICES GROCERIES The Groceries business unit consists of a portfolio of leading South African brands spanning staples to top end offerings across a range of food and animal product categories. It is made up of Grocery, GROCERY Pies and Beverages Pretoria x2 Krugersdorp Rand
Slide 14: Baking
INVESTOR PRESENTATION APPENDICES BAKING BAKING IS MADE UP OF THE FOLLOWING CATEGORIES: Bread, buns and rolls – the fourth largest bread brand nationally and produces a range of baked goods under Sunbake and DOB BREAD, BUNS & ROLLS brands Tzaneen Polokwane Milling – produces flour and a range of Cent
Slide 15: Chicken
INVESTOR PRESENTATION APPENDICES CHICKEN The Chicken category produces a wide range of chicken products under 3 well established brands: Rainbow, Simply Chicken and Farmer Brown. In addition to 3 primary processing plants and 2 further processing plants, Chicken has 180 rearing, laying and broiler f
Slide 16: Chicken: Integrated Supply Chain Farm to Fork
INVESTOR PRESENTATION APPENDICES CHICKEN CHICKEN INTEGRATED SUPPLY CHAIN FROM “FARM TO FORK” GP OPERATION AGRICULTURE PROCESSING GRANDPARENT BROILER CHICKS GRANDPARENT FARMS PARENT FARMS FARMS PROCESSING REARING LAYING HATCHING REARING LAYING HATCHING GROWING BROILER 21 WEEKS 40 WEEKS 3 WEEKS 21 WEE
Slide 17: Sugar
INVESTOR PRESENTATION APPENDICES SUGAR The Sugar business unit is made up of the following categories: • Sugar – produces a range of sugar products under the leading sugar brand Selati • Molatek – produces molasses-based feed for a range of species Komati Malelane SUGAR Pongola ANIMAL FEED 17
Slide 18: Sugar Imports and Duties
INVESTOR PRESENTATION APPENDICES SUGAR IMPORTS AND DUTIES SUGAR IMPORTS AND DUTIES 200 000 5000 180 000 4500 160 000 4000 CUMULATIVE TONS IMPORTED (SOUTH AFRICA) 140 000 3500 ▪ Cumulative tons imported 120 000 3000 from 1 April 2018, 2019, 2020 (start of industry year) 100 000 2500 DUTIES (R/ton) ▪
Slide 19: Vector: National Footprint
INVESTOR PRESENTATION APPENDICES VECTOR NATIONAL FOOTPRINT EXTENDING INTO NAMIBIA, BOTSWANA AND ZAMBIA ▪ 2 bulk storage sites (Midrand B Zambia and Midrand I) Polokwane x2 ▪ Storage capacity for over Pretoria West Botswana Centurion 147 000 pallets Spartan Midrand x4 ▪ Over 5 000 employees Rustenbur
Slide 20: Customer Overview: Logistics
INVESTOR PRESENTATION APPENDICES VECTOR CUSTOMER OVERVIEW: LOGISTICS CUSTOMER SECONDARY DISTRIBUTION (CSD) PRINCIPAL SECONDARY DISTRIBUTION (PSD) Vector is contracted by the customer to deliver their full Vector is contracted by the principal to deliver to all basket of products directly to the outl
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