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Transcript

Understanding EABL FY 2026 Results · The Mwango Capital Podcast

0:00
SPEAKER_00: Welcome to Hango Spaces once again.
0:01
SPEAKER_00: This is the EABL FY26 results with a new CFO, Justin.
0:05
SPEAKER_00: So I'll just allow him to introduce himself first,
0:07
SPEAKER_00: first time on Spaces, I think, and first time on Twitter today.
0:10
SPEAKER_00: So it's very good for him to just introduce himself.
0:13
SPEAKER_00: So Justin, Karibu Spaces.
0:14
SPEAKER_00: Thank you so much, Mokaya.
0:16
SPEAKER_01: Thank you for having us in this platform.
0:18
SPEAKER_01: Indeed, like you say, that you learn every day.
0:21
SPEAKER_01: There was an opportunity to get into Eric Frost,
0:25
SPEAKER_01: which have been perhaps postponing for quite a while.
0:27
SPEAKER_01: And then, so I think there was really an opportunity for me to get into this place.
0:32
SPEAKER_01: Also,
0:32
SPEAKER_01: thank you for the opportunity to engage with your listeners and also share I am
0:36
SPEAKER_01: a Tanzanian.
0:37
SPEAKER_01: I grew up in Tanzania.
0:38
SPEAKER_01: I went to school in Tanzania.
0:40
SPEAKER_01: I started working for Deloitte.
0:42
SPEAKER_01: 10 years with Deloitte in Tanzania, also been consulting.
0:51
SPEAKER_01: He had to give me a lot of possibilities and options to learn as much as possible.
0:55
SPEAKER_01: And my last goal in Deloitte after I was seconded to the EABL
0:59
SPEAKER_01: or Diageo Crackney Company event in 2011,
1:02
SPEAKER_01: 15, 16 years now with EABL Diageo, several roles within finance.
1:06
SPEAKER_01: It started in 2011, had a couple of falls in finance in Tanzania.
1:13
SPEAKER_01: Then I got seconded to the EFBR location role.
1:16
SPEAKER_01: In Belzato,
1:17
SPEAKER_01: Nairobi 2014-2016,
1:19
SPEAKER_01: I was doing a regional role,
1:20
SPEAKER_01: went back to Tanzania again,
1:22
SPEAKER_01: did a couple of roles,
1:23
SPEAKER_01: from financial control to financial finance,
1:26
SPEAKER_01: to strategy, and then got into CFO in 2018 with the Tanzania subsidiary.
1:31
SPEAKER_01: Four really successful years with the business in Tanzania,
1:34
SPEAKER_01: up to 2022,
1:36
SPEAKER_01: around February, then I moved Then Diageo operations in Ghana was a subsidiary ban.
1:42
SPEAKER_01: I think it's no longer a subsidiary of Diageo.
1:44
SPEAKER_01: It changed on, actually, it's been 2025, I think.
1:46
SPEAKER_01: So I was here for the Ghanaian business,
1:49
SPEAKER_01: which was really an investing business for about 10 and a half years.
1:52
SPEAKER_01: And then I got an opportunity to experience a different world,
1:56
SPEAKER_01: which was my last fall with Diageo business in Ireland,
1:59
SPEAKER_01: both Republic of Ireland and Northern Ireland.
2:01
SPEAKER_01: So I was here for about three years a day in 2025.
2:05
SPEAKER_01: I am married with three kids and they are all with me and experiencing the beauty
2:08
SPEAKER_01: of Nairobi and hopefully they get to enjoy the
2:11
SPEAKER_01: detail of the country as we continue
2:14
SPEAKER_01: to settle in this.
2:27
SPEAKER_00: A quick question though,
2:29
SPEAKER_00: because I think one of the things that struck us is that you came from Ireland
2:31
SPEAKER_00: to Kenya and you're Tanzanian, so to speak.
2:34
SPEAKER_00: What's their motivation to come to Kenya?
2:36
SPEAKER_00: Most people would be headed in the direction of Ireland, not Ireland to Kenya.
2:39
SPEAKER_01: I think it's the beauty of this business, both the EU.
2:43
SPEAKER_01: And then more so because I got a bit of it when I was in Tanzania,
2:47
SPEAKER_01: then I was here for,
2:48
SPEAKER_01: I always admired the experience in Tanzania,
2:51
SPEAKER_01: the heritage that it has,
2:52
SPEAKER_01: and then also the track record of performance, also the level of impact that it has.
2:57
SPEAKER_01: As within East Africa,
2:59
SPEAKER_01: not just in Kenya,
3:00
SPEAKER_01: but across East Africa,
3:01
SPEAKER_01: the business world has existed in Kenya for about a hundred years.
3:04
SPEAKER_01: I think Uganda, eight years, and then it's almost 40 years.
3:07
SPEAKER_01: But the impact that it trenched itself into the heart of community and society,
3:12
SPEAKER_01: Within this region or the area that it operates, something that always admired me.
3:17
SPEAKER_01: But if I think, I mean,
3:18
SPEAKER_01: it's also the size of the business itself,
3:20
SPEAKER_01: the complicity frame,
3:22
SPEAKER_01: and also the particularity and the potential that business has,
3:25
SPEAKER_01: it's some of those things that really,
3:27
SPEAKER_01: I I just felt it was too good opportunity for me to skip.
3:31
SPEAKER_01: And technically,
3:31
SPEAKER_01: when the opportunity came up,
3:32
SPEAKER_01: I quickly raised up my hand toward the part of this journey.
3:35
SPEAKER_01: And especially,
3:36
SPEAKER_01: I think we know now the reality that the business is also almost square eagle as
3:40
SPEAKER_01: a different fellow for ownership.
3:42
SPEAKER_01: So it's a mix of a lot of possibilities and potential that drove me closer to this opportunity.
3:47
SPEAKER_01: And if it's been eight weeks,
3:49
SPEAKER_01: I can see in the third room various feelings and fun and looking forward
3:52
SPEAKER_01: to what we can do together.
3:54
SPEAKER_00: And of course, first part, I wanted just to understand maybe you and your background a bit.
3:58
SPEAKER_00: Your perspective from all these different countries,
4:00
SPEAKER_00: what's the differences across the business environment that you've seen?
4:03
SPEAKER_00: Maybe some unique insights that you've arrived from having been in Kenya,
4:07
SPEAKER_00: Tanzania now, Ireland and Ghana.
4:09
SPEAKER_00: What have you picked from there?
4:11
SPEAKER_01: I think every experience gives you a really different learning opportunity
4:15
SPEAKER_01: and it makes you a wholesome leader and a complete leader as you go
4:19
SPEAKER_01: through all these experiences.
4:20
SPEAKER_01: I think in Tanzania, it was, and in 13th phase, I was part of the business.
4:24
SPEAKER_01: We went through a turnaround phase for the business.
4:27
SPEAKER_01: So you learn so much in the first,
4:29
SPEAKER_01: because it's really a very complicated market,
4:31
SPEAKER_01: but also offers so much broad opportunities.
4:34
SPEAKER_01: And it's sort of getting,
4:35
SPEAKER_01: especially as working at the CFO then,
4:37
SPEAKER_01: looking for the right balance between Growth are also on the other side,
4:41
SPEAKER_01: ensuring the financial stewardship is taken care of.
4:44
SPEAKER_01: So it's that right balance between being a great supporter for the business,
4:48
SPEAKER_01: expecting for the growth,
4:49
SPEAKER_01: but at the same time,
4:50
SPEAKER_01: be a great challenger to ensure all of the financials are in the right place.
4:54
SPEAKER_01: The general human trafficking experience as well was a different entity
4:58
SPEAKER_01: because EODL is very highly competitive.
5:01
SPEAKER_01: Quite complex.
5:02
SPEAKER_01: And then I went in at the time where I thought the country was going
5:05
SPEAKER_01: through difficult macroeconomic environment, inflation, or ADI.
5:09
SPEAKER_01: I think that went south.
5:10
SPEAKER_01: I was just navigating the business to bring all of that time and also helping or keeping the
5:19
SPEAKER_01: It was really a different experience for me.
5:23
SPEAKER_01: And then also different cultures are completely different what I'm used to.
5:27
SPEAKER_01: So this is an opportunity to lead a variety.
5:30
SPEAKER_01: Also considering those are different entities.
5:33
SPEAKER_01: It really opened up doors for me to just experience a broader range of stakeholders,
5:37
SPEAKER_01: especially in an environment where the business is going through very early in time.
5:42
SPEAKER_01: It would be really a good experience to be in the scanner into
5:45
SPEAKER_01: the 20-year statute there,
5:46
SPEAKER_01: and I think the island of The opportunity gave me also
5:49
SPEAKER_01: a different experience all together.
5:51
SPEAKER_01: Everything all around the emerging market, yes, market may have different roles.
5:55
SPEAKER_01: The competition intensity may be different.
5:58
SPEAKER_01: It could be lifted or unlifted.
6:00
SPEAKER_01: The island experience was significantly different.
6:03
SPEAKER_01: Because first it was a mature and very sophisticated business environment
6:07
SPEAKER_01: and really just forced you to look at growth in a different spectrum
6:11
SPEAKER_01: than what you perhaps may be used to when you operate in emerging markets
6:15
SPEAKER_01: or developing markets where the growth levels were But then I think
6:19
SPEAKER_01: the island experience,
6:20
SPEAKER_01: exporters use really best experiences and best practices across different levels,
6:25
SPEAKER_01: as well as governance,
6:27
SPEAKER_01: always capital allocation,
6:28
SPEAKER_01: voice strategy,
6:29
SPEAKER_01: and also leading,
6:30
SPEAKER_01: again, in a very different environment, either Very different culture context.
6:35
SPEAKER_01: That is an experience that for me really has made me to a shepherd.
6:39
SPEAKER_01: I step in my leadership speed and ready for the adventure that I've just started.
6:43
SPEAKER_01: So yeah, all the experiences have been very different, varied.
6:46
SPEAKER_01: I think what's important is you learn through all these experiences.
6:50
SPEAKER_01: To sum it up,
6:51
SPEAKER_01: honestly,
6:51
SPEAKER_01: if I look at my career so far,
6:53
SPEAKER_01: it's been really through nearly all the basis of a business.
6:57
SPEAKER_01: It's been turnaround.
6:59
SPEAKER_01: And of course the island is the home of Guinness, right?
7:20
SPEAKER_01: Whatever it is, it's the home of Guinness.
7:22
SPEAKER_00: There's a very unique story there about its founding, right?
7:24
SPEAKER_00: If I can remember my history lesson a bit well,
7:28
SPEAKER_00: there was a very unique story about Ireland and the Guinness and the story around
7:31
SPEAKER_00: the whole enterprise itself.
7:33
SPEAKER_01: Indeed.
7:34
SPEAKER_01: You take a whole day, I mean,
7:37
SPEAKER_01: As a whole,
7:37
SPEAKER_01: they just talk about the history of Guinness and Arthur Guinness in Ireland.
7:41
SPEAKER_01: And I think that's where there's a storehouse there, a Guinness storehouse where people come in.
7:45
SPEAKER_01: I think we've got track more than a million people every year who visit,
7:49
SPEAKER_01: just to experience the beauty of this brand.
7:51
SPEAKER_01: Yeah, it's really been great.
7:54
SPEAKER_01: And I think Ash invited me for some other day to talk about it.
7:57
SPEAKER_00: Yeah, definitely, definitely.
7:58
SPEAKER_00: Because there's a history there of philanthropy had a lot of impact on business
8:01
SPEAKER_00: and building community there in terms of just building the brand itself, right?
8:05
SPEAKER_00: If I remember my...
8:06
SPEAKER_00: I think that's a story for another day.
8:09
SPEAKER_00: So let's switch to the FY26 results.
8:11
SPEAKER_00: I know it's your first time reading through the results,
8:13
SPEAKER_00: but maybe we can start with the top line,
8:14
SPEAKER_00: move to the bottom line,
8:15
SPEAKER_00: and then move through the margins,
8:17
SPEAKER_00: cash, and the capital and debt strategy a little bit.
8:20
SPEAKER_00: So let's start with a bird's eye view.
8:22
SPEAKER_00: What's your read from the FY26 results and what are the key takeaways for you?
8:26
SPEAKER_01: I think the first thing, it's a college performance, right?
8:28
SPEAKER_01: In the sense that all the countries contributing to the growth.
8:31
SPEAKER_01: We reported the top-down growth by 13%, which is 146%.
8:37
SPEAKER_01: And
8:39
SPEAKER_01: I think we did say Tanzania recorded a 44% growth a year ago.
8:45
SPEAKER_01: It's under 116% growth and Kenya had about 5% growth.
8:48
SPEAKER_01: And also, like I said, what really makes this Results, very quality.
8:52
SPEAKER_01: Performance is also, all the categories were in growth.
8:55
SPEAKER_01: Beer, drink, 9%.
8:56
SPEAKER_01: Ciric, about 24%.
8:58
SPEAKER_01: And are ready to drink and cider were also in growth.
9:01
SPEAKER_01: So top line, really impressive.
9:03
SPEAKER_01: And it was all supported by volume.
9:06
SPEAKER_01: Also volume to you at the same level as top line,
9:08
SPEAKER_01: about 13% growth in volume, which turned it to a 13% growth on top line.
9:13
SPEAKER_01: I think the beauty about it is also that for past time,
9:16
SPEAKER_01: we auto-crossed to be a billion dollar revenue company.
9:20
SPEAKER_01: So actually that 146 billion can easily translate to about 1.12 billion USD.
9:25
SPEAKER_01: So really impressive for us and something that we're all happy and incredibly proud
9:30
SPEAKER_01: and gives us even much more confidence as we move forward into fiscal 2021.
9:35
SPEAKER_01: The profit as well, the business, the reason I'm saying it was a quality performance.
9:40
SPEAKER_01: Every line of the T&L really came to the table to deliver the growth.
9:44
SPEAKER_01: Look at the cost of sales.
9:45
SPEAKER_01: Again, it was an increase at an average of 10%,
9:49
SPEAKER_01: which I think in every business,
9:50
SPEAKER_01: When your cost lines are increasing,
9:52
SPEAKER_01: as a slot is on your top line, you're different, you feel a lot of work has gone.
9:55
SPEAKER_01: Specifically, the productivity issues that are collegiate supply operations,
10:00
SPEAKER_01: cemented during the year,
10:01
SPEAKER_01: and operation efficiencies really help to mitigate the inflation thresholds on
10:06
SPEAKER_01: the input cost.
10:07
SPEAKER_01: So then, at cross-profit level, you will see the business growing as an average of 15 cents.
10:12
SPEAKER_01: In absolute 10, we added about 8.4 billion, considering that cross-profit level.
10:16
SPEAKER_01: And the mindset I stayed on productivity,
10:18
SPEAKER_01: you also see it very clear on expenses,
10:20
SPEAKER_01: because all the expenses were below last year by one percentage point,
10:25
SPEAKER_01: an absolute scam.
10:25
SPEAKER_01: We actually had a benefit of 0.3 trillion, 10 a.m. on our present expenses, so on.
10:32
SPEAKER_01: That's fixed the work that has gone in in the business, really does issue us.
10:36
SPEAKER_01: We are spending widely,
10:38
SPEAKER_01: and every spend needs to Deliver us the return to the business and to
10:42
SPEAKER_01: the shareholders.
10:43
SPEAKER_01: The only line that was red was FI.
10:45
SPEAKER_01: We had FX headwind, and the swing is about 1.5 billion cnl from last year.
10:51
SPEAKER_01: And it came largely from GBP and euro and a bit of other currencies,
10:55
SPEAKER_01: like South African one,
10:57
SPEAKER_01: and largely from some of the imports that we're getting,
11:00
SPEAKER_01: which are denominated in these currencies,
11:02
SPEAKER_01: including international premiums, if you get from Europe, some concentrate.
11:06
SPEAKER_01: I think we're also proud with the work that was done to deliver the balance sheet.
11:09
SPEAKER_01: That shows up on the net financing cost for a decline of 1.5 billion 10 shillings.
11:23
SPEAKER_01: If you look at it,
11:25
SPEAKER_01: actually,
11:25
SPEAKER_01: the FHD,
11:25
SPEAKER_01: in fact,
11:26
SPEAKER_01: was almost fully dictated by the,
11:27
SPEAKER_01: and that's why, you see then an improvement of about 43%.
11:29
SPEAKER_01: So then eventually,
11:30
SPEAKER_01: the profit after that increased by 6 billion from 12 to 12 billion to 18 billion.
11:48
SPEAKER_01: 49% improvement there was last year.
11:52
SPEAKER_01: And if you look at it now,
11:53
SPEAKER_01: if you have to find attributes today,
11:56
SPEAKER_01: you could shareholder than minority,
11:58
SPEAKER_01: baby shareholders each year about 59% and the minority or non-controlling interest
12:03
SPEAKER_01: about 18%.
12:04
SPEAKER_01: An infrashare, 69%, bumper dividend, 69%, higher than last year.
12:09
SPEAKER_01: Strong balance sheet,
12:11
SPEAKER_01: strong ratios in the balance sheet as well,
12:13
SPEAKER_01: all within the water proof target and also
12:15
SPEAKER_01: all within the regulatory approved ratio.
12:17
SPEAKER_01: Pash, we generated about 18 billion.
12:20
SPEAKER_01: Pash, the year that ended 2026.
12:22
SPEAKER_01: An improvement of about $5.2 billion from last year.
12:26
SPEAKER_01: And I think that happened when we were able to leave behind the business,
12:30
SPEAKER_01: like the on purpose,
12:31
SPEAKER_01: and still be able to meet all the drawing obligations during the year.
12:35
SPEAKER_01: So it was our holistic performance, but also
12:42
SPEAKER_01: It's a
12:44
SPEAKER_00: really detailed, a broad overview.
12:46
SPEAKER_00: So I'll just dig into maybe a few elements here and there so that you can be able
12:49
SPEAKER_00: to give us a bit more flavor in terms of your insights there.
12:51
SPEAKER_00: So one is a net sales.
12:52
SPEAKER_00: So I think the highlight from the management commentary that was driven mostly
12:56
SPEAKER_00: by volume growth,
12:57
SPEAKER_00: anything that pricing contributed,
12:59
SPEAKER_00: net sales growth, that in percent is pretty strong, so to speak.
13:02
SPEAKER_00: And then it's across market.
13:03
SPEAKER_00: There are some insights that you're looking at,
13:05
SPEAKER_00: maybe the consumers are they pressured a little bit.
13:07
SPEAKER_00: I think it's like the volume, right?
13:09
SPEAKER_00: Like I said, and I mean, there was a bit of ice mix, which has a bit of exercise benefited.
13:22
SPEAKER_01: Especially from Kenya and Uganda,
13:24
SPEAKER_01: but to a large extent that was also upset by mix,
13:27
SPEAKER_01: like you say,
13:28
SPEAKER_01: that in growth can be in Tanzania,
13:30
SPEAKER_01: which had a stronger source or more faster growth than the other markets.
13:33
SPEAKER_01: So there was a market heat as well,
13:35
SPEAKER_01: and the capital heat caused it real faster than We did see a deal.
14:00
SPEAKER_01: Softer beer performance in Kenya.
14:01
SPEAKER_01: And I think it's in line with what you said in the years of illicit alcohol,
14:06
SPEAKER_01: but of creating pressure on that front.
14:08
SPEAKER_01: But to a large extent that was offset with a growth of mainstream spirit and also
14:12
SPEAKER_01: the bottled beer can mitigate the softer performance of the senator in the 50s.
14:18
SPEAKER_00: And then I think quite as your slide states that the consumer is pretty constrained
14:22
SPEAKER_00: in terms of discretionary spend.
14:24
SPEAKER_00: There's a lot of value hunting and exploration.
14:26
SPEAKER_00: I would share a little bit about that.
14:28
SPEAKER_01: Yeah, I think the consumer is very cautious on how they spend their money.
14:32
SPEAKER_01: They say they are disposable income.
14:34
SPEAKER_01: So then I think forces them to look for the right value.
14:37
SPEAKER_01: But also it's sad to say as well,
14:39
SPEAKER_01: there are also core of consumers who are looking to pay more for quality
14:45
SPEAKER_01: or differentiated experiences and innovation.
14:47
SPEAKER_00: So it's actually a mixed bag.
14:49
SPEAKER_01: Yeah, indeed we're seeing some down trading,
14:51
SPEAKER_01: but also we're seeing a core of consumers who are looking to drink better,
14:55
SPEAKER_01: not necessarily more,
14:58
SPEAKER_01: And so they are more and willing to part away with an extra dollar to ensure
15:02
SPEAKER_01: that they are getting a very differentiated experience and whether the product,
15:06
SPEAKER_01: especially the trusted gun,
15:07
SPEAKER_01: they are more than has the right experience for the right value
15:11
SPEAKER_01: that they are willing to do.
15:12
SPEAKER_01: So I think in a way you would say a business with a very broader portfolio,
15:17
SPEAKER_01: which ensures that they can avail brands and products,
15:20
SPEAKER_01: all the consumer occasions or multiple consumer occasions and different process,
15:25
SPEAKER_01: then you are likely to ensure you are able To avail everything that
15:28
SPEAKER_01: the consumer wants.
15:29
SPEAKER_01: And I think here there stands in a better place to provide that because we have
15:33
SPEAKER_01: a portfolio grant all the way from reserve,
15:36
SPEAKER_01: super premium, premium, mainstream, long mainstream, and also affordable.
15:41
SPEAKER_01: And that cuts across beer, space, ready to drink, and cider.
15:46
SPEAKER_01: So I think in a way,
15:47
SPEAKER_01: when the consumer is trying to move different baskets among those specialists
15:51
SPEAKER_01: that are looking for value,
15:52
SPEAKER_00: then at least we're giving them an opportunity to still stay within
15:55
SPEAKER_01: the same basket.
15:56
SPEAKER_01: And at the same time,
15:58
SPEAKER_01: we are equally availing the right experiences for those consumers who want to have
16:03
SPEAKER_01: the best experience and they want to have very differentiated experience.
16:08
SPEAKER_00: And then in terms of cost containment,
16:10
SPEAKER_00: I think cost of sales grew slower than net sales, which is always pretty good.
16:14
SPEAKER_00: And expenses were contained, I think 1% below the previous years.
16:17
SPEAKER_00: How do you balance that out in terms of making sure that costs are contained,
16:21
SPEAKER_00: but at the same time investing and making sure that you get the right people,
16:24
SPEAKER_00: you're investing in the right places in OPEX and CAPEX?
16:27
SPEAKER_01: That's a good question.
16:28
SPEAKER_01: I think for us, productivity has been a habit that we live with for quite a number of years.
16:33
SPEAKER_01: And it comes not as a program,
16:36
SPEAKER_01: but it's a continuous ability
16:38
SPEAKER_01: that we ensure we are indeed mitigating any core inflation at the same time
16:43
SPEAKER_01: of enhanced margin, helping to enhance margins, and use whatever comes out.
16:48
SPEAKER_01: We're using scale to really deliver value or create sustainable value.
17:05
SPEAKER_01: At the same time,
17:06
SPEAKER_01: as we were looking at moving more scope supplies to be sourced locally,
17:10
SPEAKER_01: because we still have a bit of percentage of what we source from foreign sources.
17:14
SPEAKER_01: Our colleagues and suppliers and procurement are trying to look at this,
17:18
SPEAKER_01: trying to move where possible.
17:20
SPEAKER_01: And where we can bring new partners to try and invest in countries that you operate,
17:25
SPEAKER_01: but if they are able to provide rights for materials or components
17:28
SPEAKER_01: or packaging components into product to consult them locally.
17:31
SPEAKER_01: So that has been one of the key pillars that have been to mitigate the cost pressure.
17:37
SPEAKER_01: From production and manufacturing point of view as well,
17:40
SPEAKER_01: a lot of work goes in there to ensure that you're sweating the assets in
17:44
SPEAKER_01: the right way,
17:45
SPEAKER_01: optimizing capacity,
17:46
SPEAKER_01: reducing Or minimising,
17:49
SPEAKER_01: optimising energy and water consumption, again in our production facility.
17:54
SPEAKER_01: Production planning to ensure getting the third output out of all the machines.
17:59
SPEAKER_01: And I think also on logistics as well,
18:01
SPEAKER_01: you're looking at how we are getting our products into the hands of consumers,
18:05
SPEAKER_01: so the cost to serve needs to be very complicated.
18:07
SPEAKER_01: You're looking at all the logistics operations and optimisation
18:11
SPEAKER_01: to ensure we're working with First,
18:13
SPEAKER_01: the right partners,
18:14
SPEAKER_01: but also we are looking at the most efficient way of getting all our products in all
18:18
SPEAKER_01: the corners of the country that we operate in the coal market.
18:21
SPEAKER_01: So that then speaks to the efficiency,
18:24
SPEAKER_01: as you're saying,
18:25
SPEAKER_01: and as much as you operate in an environment where The input,
18:28
SPEAKER_01: of course, is quite high.
18:29
SPEAKER_01: And I think in the last quarter,
18:31
SPEAKER_01: for example, the Midwest crisis had a significant pressure on cost of service.
18:36
SPEAKER_01: But I think what we are happy with our colleagues in supply
18:38
SPEAKER_01: and procurement is largely the work
18:41
SPEAKER_01: that they did significantly pull all this pressure that we saw,
18:45
SPEAKER_01: I mean, during the year on input cost.
18:47
SPEAKER_01: And on other expenses, again, it's your same mindset.
18:50
SPEAKER_01: Like I said, we look at the productivity, capability, increase.
18:55
SPEAKER_01: On the top line,
18:56
SPEAKER_01: revenue growth management is shared,
18:58
SPEAKER_01: which we do that every year, and it's part of how we run our business.
19:02
SPEAKER_01: And then on cost of sales, it's really around supply operations.
19:05
SPEAKER_01: And on other expenses, it's just looking at additional expense.
19:08
SPEAKER_01: And the mantra internally,
19:10
SPEAKER_01: always will ask our colleagues that if this is your money,
19:13
SPEAKER_01: would you spend the way you spend it?
19:15
SPEAKER_01: For them, that helps people really just insuring every shilling that they spend.
19:20
SPEAKER_01: It's spent in the best interest of the business and most also for
19:24
SPEAKER_01: the shareholders now and for the future.
19:27
SPEAKER_01: And we've done this not in any way to cut a spend or to cut spend just for the sake of it.
19:32
SPEAKER_01: We've done this also while ensuring that we can have the highest levels
19:37
SPEAKER_01: of investment behind our plans and we continue to invest behind our people.
19:42
SPEAKER_01: But at the same time,
19:43
SPEAKER_01: we are able to release something that has to support the growth of
19:46
SPEAKER_00: the We're almost halfway through the conversation,
19:48
SPEAKER_00: so I just want us to explore a little bit FX and finance costs.
19:52
SPEAKER_00: Let's start with the finance costs, especially.
19:54
SPEAKER_00: They were down 25%, but then it was the same year where you did an empty end raise.
19:58
SPEAKER_00: How do you balance out those two?
20:01
SPEAKER_00: Are you paying out debt or are you taking up a bit more debt, so to speak?
20:04
SPEAKER_00: What's the bigger picture there?
20:05
SPEAKER_01: The bigger picture there is really,
20:07
SPEAKER_01: and I mean,
20:08
SPEAKER_01: to a large extent,
20:08
SPEAKER_01: the business has been in this journey to deliver the balance sheet for a couple
20:12
SPEAKER_01: of years now.
20:13
SPEAKER_01: So some of those decisions are paying the dissident.
20:16
SPEAKER_01: And I think in simple terms, just to think that last year, our total debt was about $39 billion.
20:22
SPEAKER_01: For which the fixed portion of the debt was only about 11 billion and
20:26
SPEAKER_01: the remaining 28 billion was 40.
20:28
SPEAKER_01: And this year we've closed with 33 billion, which is a reduction of 5.8 or 6 billion.
20:34
SPEAKER_01: And the mix has changed.
20:36
SPEAKER_01: It is now about 17 billion, which is where the MPM is.
20:39
SPEAKER_01: And the floating portion of the debt is about 16 billion.
20:42
SPEAKER_01: So you'll see a year ago,
20:45
SPEAKER_01: the floating portion of the debt was about 72% and the tick was about 28%,
20:50
SPEAKER_01: but now it's almost 50, 50.
20:52
SPEAKER_01: So it's a mix of both.
20:54
SPEAKER_01: Proceeds from the NTN to try and pay off some of the most expensive debt that we had
20:59
SPEAKER_01: in the NICS.
21:00
SPEAKER_01: And then also some of the debt we just paid on the cash collections
21:04
SPEAKER_01: or cash generation that is in from the treatments across
21:07
SPEAKER_00: East Africa.
21:08
SPEAKER_01: So it's a mix of both.
21:09
SPEAKER_01: First, we substituted some expensive debt that we had,
21:12
SPEAKER_01: and also partly we also paid off some of the debt that we had.
21:15
SPEAKER_01: And now the NICS, the way we look at it, the NICS is quite optimal.
21:20
SPEAKER_01: And I think it gives us eternity,
21:23
SPEAKER_01: but also on the other side,
21:24
SPEAKER_01: it gives us an opportunity to navigate any volatility in the first place with any of
21:31
SPEAKER_01: the subsequent future.
21:32
SPEAKER_01: But again, also,
21:33
SPEAKER_01: we know you're in a region where the interest can be volatile,
21:36
SPEAKER_01: either positive or negative.
21:38
SPEAKER_01: And that's why we've got into this phase now,
21:40
SPEAKER_01: where it's almost 50-50, and we feel, I think, F26 or F26.
21:46
SPEAKER_01: As an opportunity,
21:47
SPEAKER_01: we look at how we continue this journey of ensuring we have
21:51
SPEAKER_01: a very strong balance sheet.
21:52
SPEAKER_00: And also in terms of the MTN, you did leave a little bit of capacity on the table.
21:56
SPEAKER_00: Are you coming back to market soon to take up the rest?
22:00
SPEAKER_00: And what are the capex plans in the near future that maybe make you maybe tap
22:04
SPEAKER_00: into your cash flows or market, so to speak, to finance them?
22:08
SPEAKER_00: Are there any measures coming up?
22:09
SPEAKER_01: I think indeed we do have a headroom,
22:11
SPEAKER_01: I think of about 3 billion, because I think the cap was about 20 billion.
22:16
SPEAKER_01: And the way we want to look at that,
22:18
SPEAKER_01: that's a strategic option that's available for us to use it at the right time
22:23
SPEAKER_01: when we feel it's necessary for us to unlock it.
22:26
SPEAKER_01: And honestly,
22:27
SPEAKER_01: I think any decision in Campbell Whether that becomes the use of NTN
22:31
SPEAKER_01: or use everything that you have,
22:34
SPEAKER_01: or in addition of borrowing,
22:35
SPEAKER_01: it definitely would be a hassle of the need for significant
22:39
SPEAKER_00: APEX investments
22:41
SPEAKER_00: across our site in the region.
22:43
SPEAKER_01: And I think also looking at the relative cost of capital,
22:46
SPEAKER_01: that's also quite important,
22:48
SPEAKER_01: and the maturity profile of the instrument that we consider in the future.
22:51
SPEAKER_01: We operated in the region of six to seven billion APEX regime.
22:56
SPEAKER_01: In the last two or three years,
22:58
SPEAKER_01: I think that like the strength was sufficient to support the growth plan
23:01
SPEAKER_01: that we have now tuned and we continue to assess peace every year.
23:05
SPEAKER_01: And it's a difficult conversation in our business, the youth cycle in the organization.
23:10
SPEAKER_01: So do you feel we're getting into a place there needed
23:13
SPEAKER_01: to be some significant subject investment to the data,
23:16
SPEAKER_01: I think that means to then that gives us options to Make choices.
23:20
SPEAKER_01: And I think,
23:21
SPEAKER_01: like I say,
23:21
SPEAKER_01: the choices would be best or determined by strategic and financial merit and looking
23:27
SPEAKER_01: at all the key options, the relative cost of capital.
23:31
SPEAKER_01: We're looking at the maturity profile of an investment and also the timing on
23:34
SPEAKER_01: when exactly you need it.
23:36
SPEAKER_01: Then that would give us an opportunity to make a choice,
23:38
SPEAKER_01: whether we unlock the remaining portion of the MCN that is the loan.
23:44
SPEAKER_01: Or we look at existing bank facilities that we have, or we even consider additional borrowings.
23:50
SPEAKER_01: So I think this is a decision that will be evaluated.
23:52
SPEAKER_01: But we've had a really good season where the spend has been in the region
23:57
SPEAKER_01: of $6 billion to $7 billion.
23:59
SPEAKER_01: And that has been sufficient for the growth now and ready for the growth that we see
24:03
SPEAKER_01: in the future.
24:04
SPEAKER_00: I mean, that's a proper explanation, but there is a huge appetite for debt in the market.
24:08
SPEAKER_00: I mean, the government is in the market for 150 billion.
24:11
SPEAKER_00: You came in, you had an oversubscription.
24:13
SPEAKER_00: Safaricom came in, had an oversubscription.
24:15
SPEAKER_00: There's a lot of cash chasing around.
24:18
SPEAKER_00: I mean, if you intend.
24:21
SPEAKER_00: It seems like the market is ready to take up whatever you're offering.
24:24
SPEAKER_00: I guess that might guide your conversation in the future.
24:26
SPEAKER_00: I just want you maybe to look at FX a little bit.
24:29
SPEAKER_00: FX, any trend, the shilling is very, very stable.
24:31
SPEAKER_00: Is that good for you?
24:32
SPEAKER_00: Very stable in a way that is suspect for some investors.
24:37
SPEAKER_00: Is that good for you?
24:38
SPEAKER_01: I think we always want certainty, mwangocapital, right?
24:40
SPEAKER_01: And I think when you have a bit of certainty,
24:43
SPEAKER_01: especially from the effects regime,
24:45
SPEAKER_01: then I think it gives you an opportunity to focus on other lines of the TNN and
24:50
SPEAKER_01: the business as well, and become that of a habit for you.
24:53
SPEAKER_01: And I think,
24:54
SPEAKER_01: especially the shilling to a dollar has been relatively stable,
24:58
SPEAKER_01: not necessarily just in tenure,
24:59
SPEAKER_01: but I think we've seen bars across the block, then in Ganda and Ghania.
25:03
SPEAKER_01: So, it's indeed a good thing.
25:05
SPEAKER_01: I know people can be...
25:06
SPEAKER_01: Whether this is being managed.
25:08
SPEAKER_01: But honestly, I mean,
25:09
SPEAKER_01: as long as we pay risk,
25:10
SPEAKER_01: you admit, you sort of continue to run the business in a most economical way.
25:15
SPEAKER_01: And hopefully it's not one of your disruptions that you did.
25:18
SPEAKER_01: And perhaps it moves.
25:20
SPEAKER_01: If it moves within one or two or three percent, I think it's something that is manageable.
25:24
SPEAKER_01: Biggest question normally comes when the move happens in this question.
25:27
SPEAKER_01: And I've seen that in my career,
25:29
SPEAKER_01: especially when I was in Ghana, when the current just went south.
25:32
SPEAKER_01: Then I think it really opens.
25:35
SPEAKER_01: Significant pressure on the business because it's now forced a loss of conversation
25:39
SPEAKER_01: about practice and which indeed in an environment where
25:42
SPEAKER_01: the pressure might vary based on their disposable income, because so much pressure.
25:47
SPEAKER_01: So now we definitely would hope it continues to be in the similar range and the state contained.
25:53
SPEAKER_01: I think that allows for the business community to really just focus on how
25:58
SPEAKER_01: to drive efficiency and deliver growth and continue
26:01
SPEAKER_01: to deliver sustainable growth results for the shareholders.
26:04
SPEAKER_00: In terms of cash generation, really rich.
26:06
SPEAKER_00: I think cash and cash equivalents are up by around 5.2 billion.
26:10
SPEAKER_00: Cash generated from operating achieves is significantly up also.
26:13
SPEAKER_00: You also decided to reward shareholders quite well with a final dividend per share of 8.7.
26:17
SPEAKER_00: I mean, the total dividend ran on 12.7, up from 8 in 2025.
26:21
SPEAKER_00: What's your thinking around the capital allocation there?
26:24
SPEAKER_00: What made you a little bit more generous with the dividend?
26:27
SPEAKER_00: And is that something that you are looking to sustain?
26:31
SPEAKER_01: Not necessarily being generalized, it's also supported by the performance, right?
26:34
SPEAKER_01: Because if you look at the profit that's attributable to the shareholders,
26:38
SPEAKER_01: it's actually increased by about 59%,
26:40
SPEAKER_01: which is almost the same level of dividend that we've recommended and the Board
26:45
SPEAKER_01: of Code declared.
26:46
SPEAKER_01: So I'll say, I think it's in line with the performance that we delivered.
26:49
SPEAKER_01: It was a historic year,
26:51
SPEAKER_01: in all fairness,
26:52
SPEAKER_01: top line,
26:52
SPEAKER_01: passed the 1 billion mark of revenue,
26:54
SPEAKER_01: and we delivered a 49% profit improvement and then passed 59% on
27:01
SPEAKER_01: So I think they, to a large extent, I'll say it's earned it.
27:04
SPEAKER_01: They've earned it and they deserve to be awarded better on the performance as well.
27:08
SPEAKER_01: And I think the beauty of that for us is we didn't just declare business for sake of it.
27:13
SPEAKER_01: We looked at it of all the scenarios.
27:15
SPEAKER_01: Ensuring of the optimal capital structure that we have and
27:18
SPEAKER_01: whether we indeed can be able to save this and whether this can be funded in a task
27:23
SPEAKER_01: that you expect to generate from the oppression.
27:25
SPEAKER_01: I think it ticked all the right boxes and we believe then this was the right level
27:30
SPEAKER_01: of evidence that should have been declared a shareholder.
27:34
SPEAKER_01: In light of the performance that came through.
27:36
SPEAKER_01: I think whether it is sustainable,
27:38
SPEAKER_01: honestly,
27:40
SPEAKER_01: what we do,
27:40
SPEAKER_01: I think we do best is really to start the organization,
27:44
SPEAKER_01: run the organization to continue delivering the right results.
27:47
SPEAKER_01: I think we control what we can control and for us is just ensuring we have really
27:51
SPEAKER_01: the right brand and the right product In the right format,
27:55
SPEAKER_01: the different occasions that the consumers engage their customers with our brand.
28:00
SPEAKER_01: At the same time,
28:01
SPEAKER_01: we continue to ensure that productivity remains our key to allow for strategy
28:06
SPEAKER_01: and we deliver operational efficiency.
28:09
SPEAKER_01: When we do all this,
28:10
SPEAKER_01: all within our control,
28:11
SPEAKER_01: it gives us an opportunity to generate efficient results for the shareholders.
28:16
SPEAKER_01: And I think then the dividend would just be an outcome of the performance
28:20
SPEAKER_01: that would be at the end of financial year.
28:22
SPEAKER_00: And then maybe one really nice slide, which you've just posted about, which I really like.
28:26
SPEAKER_00: It's a really good picture of how everything is going.
28:30
SPEAKER_00: PBT FY25 and then PBT FY26 and then the bridge there.
28:33
SPEAKER_00: So there's volume,
28:34
SPEAKER_00: which drives around 7 billion,
28:36
SPEAKER_00: ice mix,
28:36
SPEAKER_00: which drives I think it really gives a really good picture of how the business was
28:40
SPEAKER_00: in 2026.
28:40
SPEAKER_00: So perhaps you can give us a quick take on that and then we go to other questions then.
28:59
SPEAKER_01: This is a beautiful slide, right?
29:00
SPEAKER_01: And you don't see that many often.
29:03
SPEAKER_01: And then,
29:03
SPEAKER_01: like I said earlier,
29:04
SPEAKER_01: and that's why I said,
29:05
SPEAKER_01: it's actually a volume driven, both from top line and also from the bottom line.
29:10
SPEAKER_01: You'll see the biggest contribution of the performance came in from the gross profit.
29:15
SPEAKER_01: And one is the increase in the volume, that believes I've had the 7 billion improvement.
29:21
SPEAKER_01: But then also on mix as well,
29:23
SPEAKER_01: we saw mainstream spirits specifically in which it grew Significantly ahead of
29:29
SPEAKER_01: the portfolio,
29:30
SPEAKER_01: specifically,
29:31
SPEAKER_01: for example,
29:31
SPEAKER_01: Seneca, which normally some of these comes with a higher cost of production.
29:36
SPEAKER_01: And so because that production,
29:38
SPEAKER_01: the highest volume coming from the side of the portfolio,
29:42
SPEAKER_01: which has a lower cost per unit,
29:43
SPEAKER_01: then that you see the new benefit bringing in about 0.6 billion.
29:48
SPEAKER_01: And then also because of usage of the increase in volume, then you had a fixed cost absorption.
29:54
SPEAKER_01: And also those productivity incentives, which gave now the Cognizant ethical 0.5 billion.
30:00
SPEAKER_01: Let's talk about the productivity mindset that went into overheads and advertising
30:05
SPEAKER_01: and promotion.
30:06
SPEAKER_01: And I think this was just looking at how best can you get a return for machining
30:11
SPEAKER_01: that is spent both on NT and overhead.
30:14
SPEAKER_01: That's why I saw there was a reduction of 0.3 billion on expenses.
30:18
SPEAKER_01: And that, as a cost, selling and distribution, admin costs, and other income and expenses.
30:23
SPEAKER_01: As I mentioned already, we saw a hit of 1.5 billion.
30:27
SPEAKER_01: And this likely was pound and euro and a bit of North African rand.
30:32
SPEAKER_01: And it's likely Kenya.
30:33
SPEAKER_01: So I think 2 billion came from Kenya.
30:36
SPEAKER_01: There was a benefit of both 6 billion from Tandrinia.
30:39
SPEAKER_01: Uganda was almost lastish.
30:40
SPEAKER_01: So then the impacts ended up being about 1.5 billion in fiscal 2026.
30:46
SPEAKER_01: And I spoke about the financing cost, which is a mix of parts with that and in deaths.
30:51
SPEAKER_01: Like you said, that was down by about 6 billion.
30:54
SPEAKER_01: And also we enjoyed a favorable heat response regime.
30:58
SPEAKER_01: Which then led to a reduction of $1.4 billion.
31:01
SPEAKER_01: So financing cost,
31:02
SPEAKER_01: the benefit we got from financing cost almost really fully mitigated benefits.
31:07
SPEAKER_01: And so that then leaves out everything that we got from cost profit plus
31:12
SPEAKER_01: the benefit we got from expenses then flowing down to or led to an improvement
31:18
SPEAKER_01: in profit report in fiscal 2026.
31:22
SPEAKER_00: And then another beautiful slide you have is about cash generation,
31:25
SPEAKER_00: I think, and how that's flowing at the start of the year to the very end.
31:28
SPEAKER_00: I think the cash from operations is very significantly up all in all.
31:33
SPEAKER_00: And it also shows your priorities in terms of paying down debt and making sure that,
31:37
SPEAKER_00: of course, taxes are paid and all.
31:39
SPEAKER_00: So you can also take us through that,
31:40
SPEAKER_00: take us a little bit through that,
31:41
SPEAKER_00: the cash and how it's flowing through the enterprise.
31:43
SPEAKER_00: Just at the same time, talk to us a bit about the capacity priorities, maybe for FY27.
31:48
SPEAKER_01: So I think we generated 42 billion from operations in fiscal 2020.
31:53
SPEAKER_01: That's up 6.6 billion from what we generated last year.
31:58
SPEAKER_01: And we use that to, like you said, you paid about 4.3 billion on interest.
32:02
SPEAKER_01: And we are a good corporate citizen.
32:04
SPEAKER_01: So we paid almost 10 billion shilling to the government office.
32:07
SPEAKER_01: So that was 9.6 billion to be precise.
32:10
SPEAKER_01: Like I said earlier,
32:11
SPEAKER_01: we continue to invert behind our business or our assets in all
32:15
SPEAKER_01: the three-year countries that we operate.
32:17
SPEAKER_01: We spend about 6.6 billion on CapEx.
32:20
SPEAKER_01: We paid dividends, but you know, bankers, they've been there for you continue to make.
32:24
SPEAKER_01: Our shareholders are mild and happy,
32:26
SPEAKER_01: and we paid down the debt, which was the tune of 6.5 billion.
32:29
SPEAKER_01: The actual debt was about 6 billion.
32:31
SPEAKER_01: The difference is about lease products, why it's showing up 6.5 billion.
32:36
SPEAKER_01: And then also we had a small amount on the translation of both propens.
32:39
SPEAKER_01: So then that moved our cash generators from oppression and cash and cash equivalent
32:44
SPEAKER_01: from a $2.7 billion shooting last year to $3 billion this year,
32:48
SPEAKER_01: which is $5.2 billion equivalent as a year ago.
32:52
SPEAKER_01: And you mentioned on couples.
32:54
SPEAKER_01: Profit remains in the similar profile,
32:56
SPEAKER_01: between 6 and 7 billion, and to a large extent it's really to support the growth.
33:01
SPEAKER_01: Normally 50% of that normally is around bottles plus that we use for production.
33:06
SPEAKER_01: A bit of it goes into maintaining current operations,
33:09
SPEAKER_01: ensuring all the assets continue to deliver the right levels of growth
33:13
SPEAKER_01: that we want now and also for the foreseeable future.
33:16
SPEAKER_01: There's also an element that goes into safety and compliance, a bit on sustainability.
33:21
SPEAKER_01: So if you take the four buckets,
33:23
SPEAKER_01: returnables plus maintaining current operations plus FD and a bit on sustainability,
33:29
SPEAKER_01: normally you'll take 80 to 90% of assets investments sent to their own source.
33:34
SPEAKER_00: I want to maybe explore the part of this conversation, which we haven't really explored so far.
33:38
SPEAKER_00: Diageo is selling to Asahi.
33:41
SPEAKER_00: These are a bit of an update that you provided.
33:43
SPEAKER_00: The transaction was announced around December last year and progressing.
33:46
SPEAKER_00: There's been a lot of court cases,
33:48
SPEAKER_00: a lot I think just also to ensure we're
33:55
SPEAKER_01: giving the right context, right?
33:58
SPEAKER_01: This is a shareholder transaction.
34:01
SPEAKER_01: So it's really just a handshake between Diaz and Asahi.
34:04
SPEAKER_01: And at the moment, the deal is pending or is subject to approvals
34:12
SPEAKER_01: I think we did provide to indicate that we have received all the approvals
34:16
SPEAKER_01: and unconditional approvals from Tanzania and also all the authorities in Uganda.
34:21
SPEAKER_01: So we've gotten both EMA and the competition or authority approvals from authorities
34:28
SPEAKER_01: in Uganda and Tanzania.
34:30
SPEAKER_01: In Kenya already received the approval from Capital Markets Authority of Kenya.
34:36
SPEAKER_01: The only pending approval now is with the Constitution Authority of Kenya,
34:40
SPEAKER_01: which we are waiting for them to eventually want to be satisfied with everything
34:45
SPEAKER_01: that has been provided.
34:46
SPEAKER_01: And we hope that we should be receiving the approval in the year future.
34:51
SPEAKER_00: I know these are more shareholder level transactions,
34:53
SPEAKER_00: but I think one of the questions that you've received
34:54
SPEAKER_00: a little bit is minority shareholders feel that they should have been part of
34:58
SPEAKER_00: the process of also selling a bit to Asahi.
35:01
SPEAKER_00: Do you have any comment on that generally?
35:03
SPEAKER_01: No, not really mwangocapital.
35:04
SPEAKER_01: Like I said,
35:05
SPEAKER_01: it was largely a shareholding conversation between Diageo wanting to sell their spec
35:11
SPEAKER_01: into the business to Asahi.
35:13
SPEAKER_01: So honestly,
35:14
SPEAKER_01: as management for EA Breast,
35:16
SPEAKER_01: who would it be in a position to comment on why certain of
35:21
SPEAKER_01: the shareholders were not included or not?
35:23
SPEAKER_01: I think the only thing that we know is we only know what we do best is just
35:27
SPEAKER_01: to ensure that We continue to run this business in a most efficient manner so
35:32
SPEAKER_01: that it continues to generate results for the shareholders and for all
35:36
SPEAKER_01: the shareholders.
35:37
SPEAKER_00: All right.
35:38
SPEAKER_00: Now that you've been around for around eight weeks,
35:40
SPEAKER_00: what are some of the intriguing things
35:41
SPEAKER_00: that you're picking around that's your top priorities heading into FY27
35:45
SPEAKER_00: as data started and what apps you can also provide us with a little bit of outlook
35:50
SPEAKER_00: to the greatest extent that you can in that regard?
35:54
SPEAKER_01: I think for us,
35:55
SPEAKER_01: one thing that's the business priority,
35:57
SPEAKER_01: and we work with the management,
35:58
SPEAKER_01: of course, and the leadership, of course, in Africa.
36:01
SPEAKER_01: One is the truth that the business is going through a transition.
36:04
SPEAKER_01: So what we do,
36:05
SPEAKER_01: and I mean,
36:05
SPEAKER_01: whatever happens outside the organization,
36:07
SPEAKER_01: specifically on securing approval, that's beyond our control, right?
36:11
SPEAKER_00: You can only have very low risk for letting that they eat.
36:13
SPEAKER_01: But internally,
36:14
SPEAKER_01: it's really just helping the organization to be ready for that time when eventually
36:19
SPEAKER_01: the approval is granted.
36:20
SPEAKER_01: So I think the biggest priority now for the business is really transition and more
36:24
SPEAKER_01: so helping the organization make the organization ready for when
36:28
SPEAKER_01: that transition happens.
36:29
SPEAKER_01: But towards the business performance,
36:31
SPEAKER_01: right, you've just recorded a very, very Impresses the performance.
36:36
SPEAKER_01: And I think what we do want as an organization is to sustain the performance of
36:41
SPEAKER_01: the business, especially to sustain the momentum.
36:44
SPEAKER_01: So that becomes our second priority, to ensure that we continue to really unlock growth.
36:51
SPEAKER_01: Working with the leadership of all the free market or co-market
36:54
SPEAKER_01: to ensure we are sustaining the momentum that we've seen and continue to grow
36:58
SPEAKER_01: the business out to get into Pico 27.
37:00
SPEAKER_01: Then productivity remains very critical.
37:03
SPEAKER_01: I think we can't do this but just by looking at one line of P&Ls.
37:07
SPEAKER_01: So it's important to grow the business,
37:09
SPEAKER_01: but it's also important to ensure that we are actually helping to make
37:13
SPEAKER_01: the organization as efficient as possible.
37:16
SPEAKER_01: And so the operational efficiency continues to be And I've been in the business
37:20
SPEAKER_01: and continue to drive productivity gains across the cost of sales and of course,
37:25
SPEAKER_01: all the other expenses lying.
37:26
SPEAKER_01: And I think if you do this free,
37:29
SPEAKER_01: as we continue to also have the right discipline on capital and capital,
37:33
SPEAKER_01: especially from my point of view,
37:35
SPEAKER_01: because it's important to ensure that when there is an opportunity for growth,
37:39
SPEAKER_01: then even if it's coming in the future,
37:42
SPEAKER_01: we are set for it and we can invest ahead and be able to obtain that capacity.
37:46
SPEAKER_01: So we are also looking at ensuring you have the right discipline on capital application.
37:51
SPEAKER_01: So if you do all these four,
37:53
SPEAKER_01: transition ready,
37:54
SPEAKER_01: sustaining business,
37:55
SPEAKER_01: performance,
37:56
SPEAKER_01: momentum,
37:57
SPEAKER_01: ensuring we are driving productivity agenda across the organization and that habit,
38:02
SPEAKER_01: and be able to maintain the right discipline as in on how we allocate capital,
38:07
SPEAKER_01: then I think we definitely will have another good year of performance.
38:11
SPEAKER_00: All right.
38:11
SPEAKER_00: Now in closing a bit for the younger people in their audience who also aspire to
38:16
SPEAKER_00: a career as you have journey across countries and all.
38:19
SPEAKER_00: What are some of the reflections that you've had along your journey's way,
38:23
SPEAKER_00: some of the stories that have impacted you along your journey's way that you'd love
38:26
SPEAKER_00: to share to those who want to aspire to be at your level?
38:30
SPEAKER_01: Thank you, Vokara.
38:30
SPEAKER_01: I think for me, one, raise your hand.
38:33
SPEAKER_01: I think we have a tendency of hoping that the world will decide on who they should help.
38:40
SPEAKER_01: But I think it equally demands an effort for many individuals.
38:43
SPEAKER_01: So I'll say raise your hand as much earlier as possible,
38:46
SPEAKER_01: taking help,
38:47
SPEAKER_01: raise your hand when the new opportunity that potentially ever exists
38:51
SPEAKER_01: or they may come in the future,
38:53
SPEAKER_01: raise your hand, your willingness to be ready to be considered for something else.
38:57
SPEAKER_00: And two, be willing to move out of
38:59
SPEAKER_01: your comfort zone.
39:01
SPEAKER_01: It's easy to really just live within your own comfort zone,
39:04
SPEAKER_01: could be with your own role,
39:06
SPEAKER_01: could be even Moving from one side to the other,
39:09
SPEAKER_01: you can't do it a lot of anxiety,
39:11
SPEAKER_01: you're standing a lot of butterflies in your stomach.
39:14
SPEAKER_01: So embrace it and be willing to move out of that,
39:17
SPEAKER_01: whether that means moving from one role to another in the same organization,
39:22
SPEAKER_01: or he moves from one role to another, from one function to another.
39:27
SPEAKER_01: Or only moving from one country to another country.
39:30
SPEAKER_01: For me, it would definitely,
39:31
SPEAKER_01: the only thing I'll tell you is really embrace that when the opportunity comes up
39:35
SPEAKER_01: and also throughout time at some point also solving the family situation.
39:40
SPEAKER_01: But hopefully the family situations allow you to grab those opportunities
39:44
SPEAKER_01: and be willing to make yourself vulnerable and be willing to get yourself out of
39:49
SPEAKER_01: the comfort zone.
39:50
SPEAKER_01: But then also performance gives you a right to open the door.
39:54
SPEAKER_01: But I think also it's equally important to remain a consistent performer
39:59
SPEAKER_01: at all times, whether somebody is watching or not watching.
40:03
SPEAKER_01: Whether your manager is watching it or not watching it,
40:06
SPEAKER_01: what's important is the consistency that is in the performance needs
40:10
SPEAKER_01: to be seen every day and it should never in any way change.
40:15
SPEAKER_01: I had somebody once told me,
40:17
SPEAKER_01: the brilliance in what you deliver should remain constant in irrespective
40:21
SPEAKER_01: who you report to, even if you report to a coach.
40:23
SPEAKER_01: And so to a large extent for me,
40:26
SPEAKER_01: there's one thing I can put to somebody, really just bring your egg in every day.
40:31
SPEAKER_01: Do not in any way think that you're doing this for your line manager or for your bot.
40:35
SPEAKER_01: You're doing it for yourself.
40:36
SPEAKER_01: And there is always a temptation that somebody is not watching.
40:40
SPEAKER_01: Always have good work and a performer gets recognition.
40:44
SPEAKER_01: Somebody may not be watching directly, but somebody may be working directly.
40:48
SPEAKER_01: So you will be rewarded.
40:49
SPEAKER_01: As long as you deliver,
40:51
SPEAKER_01: you bring in your AI game every day consistently,
40:53
SPEAKER_01: it definitely will get the right recognition.
40:56
SPEAKER_01: And hopefully you also have fun in your career, because it's not a sprint, it's a marathon.
41:00
SPEAKER_01: It's not to be enjoyed when you get to be a CFO or a CEO or a certain director.
41:06
SPEAKER_01: It is meant to be enjoyed during the whole year anniversary.
41:10
SPEAKER_01: So hopefully as you do this, you also have fun for yourself.
41:14
SPEAKER_01: Those you feel would be what I'm more than happy to offer and pass on to anybody
41:19
SPEAKER_01: who is trying to make it for their career.
41:22
SPEAKER_00: All right.
41:22
SPEAKER_00: Thank you, Justin.
41:23
SPEAKER_00: I think that's a really good opener in terms of having conversations with you.
41:27
SPEAKER_00: We hope to have you more in the half year and then the full year results,
41:29
SPEAKER_00: just to give us a bit of perspective.
41:31
SPEAKER_00: I will be back to keep track of some of the promises that you've made in terms
41:34
SPEAKER_00: of your goals and targets for the FY27.
41:36
SPEAKER_00: I think overall,
41:37
SPEAKER_00: from my perspective, FY26 was a really blowout year for you in terms of earnings.
41:41
SPEAKER_00: So I hope you can sustain that and shareholders will keep being rewarded in that regard.
41:45
SPEAKER_00: You can say goodbye in your closing remarks and then we shall end this basis.
41:50
SPEAKER_01: Thank you, Mukaina.
41:51
SPEAKER_01: Thank you for having us.
41:53
SPEAKER_01: It was very good to connect with the audience and really looking forward for us
41:57
SPEAKER_01: to continue partnering.
41:59
SPEAKER_01: And let's hope that we continue to have this conversation.
42:02
SPEAKER_01: And if there are any questions that may come up,
42:05
SPEAKER_01: more than happy for us to engage and provide all the responses.
42:08
SPEAKER_01: So we continue to do what we do best,
42:10
SPEAKER_01: availing the brand and all the coronavirus Eastern African blocs that we operate.
42:15
SPEAKER_01: And hopefully you continue to enjoy with beautiful brands in which you have
42:19
SPEAKER_01: a portfolio of iconic brands that continue to win hearts and minds of consumers
42:24
SPEAKER_01: across South Africa and across the world.
42:26
SPEAKER_01: So hopefully this is another time for you guys to enjoy with it in whichever place
42:30
SPEAKER_01: that you're logging in.
42:31
SPEAKER_00: Thank you, Justin, and all the best and hope to see you again in the half year.
42:34
SPEAKER_00: Before that, maybe you should have a chat on the Guinness story.
42:37
SPEAKER_01: Definitely, let's have a chat on that one.
42:40
SPEAKER_01: It's a beautiful story.
42:41
SPEAKER_00: Our earlier memories of Guinness is of course the Michael Power series that used
42:45
SPEAKER_00: to air just before news.
42:46
SPEAKER_00: Really memorable one.
42:48
SPEAKER_00: Defining childhoods and also the our country, our beer kind of.
42:52
SPEAKER_00: I think you have a rich history and then maybe you should explore that at some point
42:56
SPEAKER_00: to share with Wakenya.
42:57
SPEAKER_01: That's a beautiful brand and you can't store it everywhere.
42:59
SPEAKER_01: I think in Nigeria,
43:00
SPEAKER_01: apparently consumers in Nigeria believe that GMSD actually owned by the Nigeria
43:05
SPEAKER_01: and not even Ireland.
43:06
SPEAKER_01: And you could get all the multiple stories in every place that you find yourself in.
43:11
SPEAKER_01: And I think that speaks to a brand that is over 260 years old.
43:14
SPEAKER_01: It's only in more than 190 countries across the globe.
43:17
SPEAKER_00: All right, Justin, let me let you go.
43:19
SPEAKER_00: Bye and see you soon.
43:20
SPEAKER_00: All right, thank you.
43:21
SPEAKER_00: Bye-bye.