Century Pacific Food, Inc. · PSE:CNPF
Century Pacific Food — FY2021 Earnings Presentation
29 slides from Century Pacific Food's earnings presentation, Apr 6, 2022
Slide 1: CNPF Full Year 2021 Results Presentation
CNPF FULL YEAR 2021 RESULTS PRESENTATION APRIL 2022 1
Slide 2: Latest Financial Performance
LATEST FINANCIAL PERFORMANCE
Slide 3: FY 2021 Financial Results Highlights
FY 2021 FINANCIAL RESULTS HIGHLIGHTS TOTAL REVENUE BRANDED REVENUE OEM REVENUE NET INCOME GROWTH YoY GROWTH YoY GROWTH YoY GROWTH YoY FY +13% +10% +29% +20% 4Q +18% +21% +8% +14% 3
Slide 4: Consistent Growth Over the Years
CONSISTENT GROWTH OVER THE YEARS 5Y Revenue Trend Segment Contribution In PHP B 13% YoY FY21 vs FY20 OEM 22% Marine R % CAG 31% +14 Milk & Others 24% Meat 24% Consistent performance can be attributed to CNPF’s strategy of continuously strengthening its core business, Branded Marine and Meat and inve
Slide 5: Double-Digit Growth of Both OEM & Branded Segments
DOUBLE-DIGIT GROWTH OF BOTH OEM & BRANDED SEGMENTS FY Revenue Growth Split YoY Branded Performance YoY OEM Performance In PHP B 13% YoY FY21 vs FY20 Global Essentials Market & staples Reopening; nature; High Supported demand by new for healthier products & products innovation ∙ Branded segment growt
Slide 6: Branded Revenues at an All-Time High
BRANDED REVENUES AT AN ALL-TIME HIGH FY BRANDED REVENUE GROWTH QUARTERLY REVENUE TREND In PHP B +10% 5% QoQ FY21 vs FY20 +25% 2021 21% YoY 4Q21 vs 4Q20 2020 2019 ∙ Resilient branded revenues amounting to P42.8B driven by the essentials and staples nature of our portfolio, consumers prioritizing trus
Slide 7: Resilient Demand for Our Products
RESILIENT DEMAND FOR OUR PRODUCTS K-shape Recovery Favorable shifts in consumer behavior Insulated Consumers Trusted Health Value for Cooking at Safety Brands & Wellness Money Home Core brands are Actively Fastest-growing Increased Diverse roster staples of Filipino communicating and key critical co
Slide 8: Market share gains across all segments
Market share gains across all segments Market Share Trends Shelf-stable Tuna Corned Meat Powdered Milk +1 pp +1 pp +3 pps ∙ Market share gains reflect consumers’ preference for well-known and trusted brands, and increased importance of excellent execution amidst logistical challenges Source: Nielsen
Slide 9: Supported by the growth of relevant innovations
Supported by the growth of relevant innovations Core Emerging Marine and Meat Milk Coconut Culinary Plant-Based Pet Food April 2019 December 2020 April 2021 August 2020 September 2019 Institutional October 2020; October 2021 Retail Feb 2021 October June 2021 March 2021 2021 September 2020 Product in
Slide 10: OEM Exports Outperformed in 2021
OEM EXPORTS OUTPERFORMED IN 2021 Revenue Split FY21 Revenue Growth OEM Export Revenue Trend In PHP B 2021 2020 2019 ∙ Tuna export business a beneficiary of global foodservice recovery as global markets continue to reopen; Coconut demand heightened amidst need for healthier and better-for-you product
Slide 11: Back-to-Back Bottomline Performance
BACK-TO-BACK BOTTOMLINE PERFORMANCE Net Income FY Margins & Tax Rates In PHP Mill Expected gross margin + 20% Gross Margin softening due to general rise FY21 vs FY20 -140bps of input prices globally +24% FY20 vs FY19 EBITDA Margin Largely sustained EBITDA -40bps margins due to the efficient manageme
Slide 12: Healthy Cash Flow Generation
HEALTHY CASH FLOW GENERATION 2021 Cash Flows In PHP Mill Capacity expansion, (903) maintenance, & sustainability initiatives 54 Changes in debt & dividend + Php 499 M (2,572) payments Inventory buildup & supply (2,174) management (1,042) • Healthy cash flow generation driven by robust operational pe
Slide 13: 2021 Wrap-Up & 2022 Outlook
2021 WRAP-UP & 2022 OUTLOOK
Slide 14: Strategic Priorities
STRATEGIC PRIORITIES Branded Product Portfolio Innovation pipeline, New Products: Branded Coconut, Condiments, Plant-Based, organic and inorganic Refrigerated, & Pet Food opportunities, existing and adjacent categories Faster growth, building Emerging: Milk scale, challengers or category builders Co
Slide 15: Robust Innovation Lineup to Address Emerging Consumer Needs
ROBUST INNOVATION LINEUP TO ADDRESS EMERGING CONSUMER NEEDS Core Emerging Marine and Meat Milk Plant-Based Pet Food Value For money Value for money Healthy, accessible, & better Accessible and nutritious cooking ingredients & viands energy-booster for kids for the planet food options pet food for fu
Slide 16: Activating Opportunities to Strengthen the Core: Ligo Acquisition
Ligo is a legacyINORGANIC ACTIVATING brand known for its range OPPORTUNITIES of high qualityTOsardines and other STRENGTHEN marine products THE CORE M&A M&A AFFORDABLE NUTRITION CONSOLIDATION PLAY Aligned with our mission of providing The Sardine category is quite fragmented, affordable nutrition to
Slide 17: Future-Proofing the Business by Investing in Sustainability
FUTURE-PROOFING THE BUSINESS BY INVESTING IN SUSTAINABILITY SPOTLIGHT PROJECTS 2021: 2nd year of plastic neutrality 1 Million Trees for farmers Largest manufacturing hub 11 brands certified & Road to Carbon Neutrality by 2028 powered by solar energy PLASTIC NEUTRAL COMPANY 17
Slide 18: 2022 Outlook
2022 Outlook Inflationary & volatile environment CNPF is poised to weather uncertainties exacerbated by Ukraine & Russia War and remain resilient amidst headwinds • Expected higher input prices as we entered 2022 CNPF starts the year strong • War in Ukraine & Russia pushing commodity prices up • Hig
Slide 19: Long-Term Strategy
LONG-TERM STRATEGY Performance Positioning Expansion Efficiency- High Exploiters All-Weather Focused CNPF Performance Resilience-Focused in Good Times Resilience Exploiters Low Low High Crisis Performance ∙ Delivering low double-digit to mid-teens growth during good times, and outperforming our grow
Slide 20: CNPF Full Year 2021 Results Presentation
CNPF FULL YEAR 2021 RESULTS PRESENTATION APRIL 2022 20
Slide 21: Annex
ANNEX
Slide 22: Sustainability Updates
SUSTAINABILITY UPDATES
Slide 23: Other Financials
OTHER FINANCIALS
Slide 24: FY 2021 Summarized P&L
FY 2021 SUMMARIZED P&L In PHP Mill FY 2020 FY 2021 Change YoY • Revenues grew double-digit despite a high Net Revenues 48,302 54,710 13% base last year Cost of Sales 36,374 41,957 15% • Branded up 10% as demand remains resilient, Gross Profit 11,928 12,753 7% driven by essentials nature of portfolio
Slide 25: FY 2021 Summarized Cash Flow
FY 2021 SUMMARIZED CASH FLOW In PHP Mill FY 2020 FY 2021 • Increase in working capital due to buildup Profit before Tax 5,128 5,568 of inventory covers and lower payables as Depreciation & part of supply management Amortization 1,106 1,272 Working Capital Change 135 (2,572) • Strong cash generation
Slide 26: FY 2021 Summarized Balance Sheet
FY 2021 SUMMARIZED BALANCE SHEET In PHP Mill FY 2020 FY 2021 In PHP Mill FY 2020 FY 2021 Cash 1,229 1,728 Trade and Other Receivables Payables 9,671 9,105 6,913 7,906 Inventory Notes Payable - Current 3,533 2,810 12,973 14,112 Current Assets 23,973 26,478 Long-Term Loan 0 1,982 PPE 7,291 8,574 TOTAL
Slide 27: Working Capital Details
*Working capital days WORKING CAPITAL DETAILS Working Capital Trade Receivables Inventory Trade Payables & Cash Conversion Cycle & Receivable Days & Inventory Days & Payable Days 123 96 130 85 97 79 53 52 • Cash conversion cycle lengthens to 96 days due to reduction in payables • Strict monitoring o
Slide 28: Financial Ratios
FINANCIAL RATIOS • Comfortable level of gearing ratios Gearing (x) maintained • Higher net gearing due to cash Net Gearing (x) being reinvested in growth initiatives • Increase in current ratio due to Current Ratio (x) higher inventory and lower payables • Attractive return ratios with ROE in Return
Slide 29: Ortigas Center, Pasig City, Philippines investorrelations@centurypacific.com.ph www.centurypacific.com.ph
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