Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Q2 2013 Earnings Presentation
22 slides from Del Monte Pacific's earnings presentation, Aug 12, 2013
Slide 1: Del Monte Pacific Limited Second Quarter Results
Del Monte Pacific Limited Second Quarter Results 12 August 2013 1
Slide 2: Disclaimer
Disclaimer This presentation may contain statements regarding the business of Del Monte Pacific Limited and its subsidiaries (the “Group”) that are of a forward looking nature and are therefore based on management’s assumptions about future developments. Such forward looking statements are typically
Slide 3: Contents
Contents Executive Summary 2Q 2013 Results Market Updates 1H 2013 Results Dividend Outlook PSE Listing Thai Production and PJC prices Del Monte Philippines and S&W Asia Products 3
Slide 4: Executive Summary
Executive Summary DEL MONTE PACIFIC SECOND QUARTER HIGHER SALES DRIVEN BY BROAD-BASED GROWTH • Second quarter sales up 11% to US$121m driven by both the branded and non branded businesses • Branded business grew 8% to US$79.5m in the Philippines and S&W markets in Asia and the Middle East • Operatin
Slide 5: Second Quarter 2013
Second Quarter 2013 2Q 2Q In US$m 2012 Chg (%) Comments (restated)* 2013 Higher sales due to branded and Turnover 108.9 121.0 +11.1 non branded businesses Gross profit 27.0 28.4 +5.2 Higher volume and better sales mix Operating profit 9.1 10.2 +12.0 Higher sales Finance (0.2) (2.0) +965.4 Due to unr
Slide 6: 2Q Turnover Analysis
2Q Turnover Analysis 34% Branded 66% Non Branded Branded +8% • Philippines +8% • SW processed +8% • SW fresh +21% Non Branded +21% • Strong North America sales of value added products such as fruit in plastic cups and crushed pineapple in aseptic bags which have better margins 6
Slide 7: 2Q Sales and Operating Profit Breakdown
2Q Sales and Operating Profit Breakdown Sales Breakdown Operating Profit Breakdown US$121.0m US$10.2m Non-Branded Branded
Slide 8: Philippine Market 2Q Updates
T Philippine Market 2Q Updates • Sales in the Philippines +8% driven by the processed fruit and culinary segments • Improvements in consumption frequency • Supported by integrated new campaigns, new occasion offerings and product bundles, and recipe education • Buoyant domestic economy, increased st
Slide 9: S&W 2Q Updates
T S&W 2Q Updates • S&W processed sales +8% with China and the Middle East strong • S&W fresh sales +21% driven by robust sales in Japan, China, Middle East and Singapore • Higher supply of the premium fresh fruit which satisfied the strong fresh demand • Brand building with sampling activities are b
Slide 10: India 2Q Updates
T India 2Q Updates • Del Monte processed sales +46% • Lower equity loss of US$1.3m from US$1.5m the prior year quarter, on higher sales, improved product mix and reduced overheads
Slide 11: 2Q Margins
2Q Margins Gross margin Lower PJC price and higher warehousing and distribution % costs 30 Margin 24.8 23.4 Operating margin 20 Higher sales and better sales mix Net margin Unrealised FX loss 8.3 8.4 10 5.5 5.1 0 Gross margin Operating margin Net margin 2Q12 2Q13 11
Slide 12: 2Q Cash Flow Variance Analysis
2Q Cash Flow Variance Analysis Additional Investment 1Q13 Operations Working Cap Tax Capex in FieldFresh Others 2Q13 -US$149.6m -US$162.2m Net Debt Net Debt -US$162.2m Net Debt +12.1m -23.2m -6.1m -5.6m -0.9m +11.1m
Slide 13: First Half 2013
First Half 2013 1H 1H In US$m 2012 Chg (%) Comments (restated)* 2013 Higher sales due to the branded Turnover 183.6 208.4 +13.5 business Higher volume and better sales Gross profit 44.6 48.2 +7.9 mix Higher A&P spend as a result of Operating profit 17.7 18.1 +2.6 timing; weak PJC prices Finance inc/
Slide 14: 1H Turnover Analysis
1H Turnover Analysis 33% Branded 67% Non Branded Branded +15% • Strong performance of the Philippine market and the Fresh business Non Branded +10% • Due to better performance of the non supply contract segment which offset declines in the supply contract segment 14
Slide 15: 1H Margins
1H Margins Gross margin Lower PJC price and higher warehousing and distribution % costs 30 Margin 24.3 23.1 Operating margin Higher A&P spend 20 Net margin Unrealised FX loss 9.6 8.7 10 5.7 5.1 0 Gross margin Operating margin Net margin 1H12 1H13 15
Slide 16: 1H Cash Flow Variance Analysis
1H Cash Flow Variance Analysis Additional Investment Working in 2Q12 Operations Cap Tax Capex FieldFresh Dividend Others 2Q13 -US$123.6m -US$162.2m Net Debt Net Debt -51.7m -10.2m +68.5m -22.1m -3.7m -24.1m +4.7m
Slide 17: Dividend
Dividend Dividend Book Closure Payment Date Dividend/ Payout Ratio Date Share Final 21 Aug 2013 4 Sept 2013 US$0.0062 75% of 1H 2013 net profit US cents 1H: 0.46 3 2.56 2.23 1.91 US cents 2 1.10 2H: 1.51 0.79 1 1H: 0.72 0.62 0 2008 2009 2010 2011 2012 2013 17
Slide 18: Outlook
Outlook • The Group’s branded business continues to grow strongly – improved trade coverage and advertising – entry into new markets – increased capacity of the ready-to-drink beverage which came onstream in June • Initiatives to expand sales of higher margin value added products led to a better sal
Slide 19: Dual Listing on the PSE
Dual Listing on the PSE Transaction Summary • On 10 June 2013, DMPL listed its ordinary shares by way of introduction on the Main Board of the Philippine Stock Exchange (“PSE”). o DMPL became the first company to be dual listed on both the Singapore Exchange and PSE. • On the same day as the listing
Slide 20: Thai Production vs PJC prices
Thai Production vs PJC prices Source: FAO, Foodnews
Slide 21: Del Monte Philippines Products
T Del Monte Philippines Products
Slide 22: S&W Asia Products
T S&W Asia Products