Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — FY2022 Earnings Presentation
36 slides from Del Monte Pacific's earnings presentation, Jun 23, 2022
Slide 1: Resilient Growth: 4Q and FY2022 Results
RESILIENT DEL MONTE PACIFIC 4Q AND FY2022 RESULTS GROWTH 23 June 2022 Nourishing Families. Enriching Lives. Every Day.
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 ▪ Summary ▪ 4Q FY2022 Results ▪ FY2022 Results ▪ Dividends ▪ Market Updates ▪ Sustainability ▪ Outlook
Slide 4: Notes to the Results
Notes to the Results ▪ 4Q is from 1 February to 30 April 2022 ▪ DMPL owns 87% of Del Monte Philippines, Inc. and 93.6% of Del Monte Foods, Inc. DMPL recognizes a 13% and 6.4% non- controlling interest (NCI) in these two subsidiaries, respectively. These comprise the NCI line in the P&L. Net profit i
Slide 5: 4Q and FY2022 Highlights
4Q and FY2022 Highlights 4Q ▪ Del Monte Pacific’s (DMPL) sales grew by 14% to US$569.5m on better performance in USA and S&W branded fresh pineapple exports ▪ US subsidiary Del Monte Foods’ (DMFI) net profit quadrupled to US$19.0m ▪ Group net profit of US$20.0m was higher by 38% Full Year ▪ DMPL sal
Slide 6: Outlook
Outlook ▪ Strengthen our core business, expand the product portfolio, in response to consumer preference for health and wellness, and grow our branded business ▪ More product availability through a more efficient supply chain, better distribution and expanded sales channels including e-commerce ▪ DM
Slide 7: 4Q FY2022 Results Summary
4Q FY2022 Results Summary ▪ Sales of US$569.5m, +14% Sales % Change Americas +26 Philippines -13 (in peso terms -7) S&W +8 India (equity accounted) -24 (in rupee terms -22)* *Del Monte Foods Pvt Ltd (India) discontinued the fresh business. Del Monte packaged business sales were down 6% in USD terms
Slide 8: 4Q FY2022 Results
4Q FY2022 Results 4Q 4Q In US$m Chg (%) Comments FY2021 FY2022 Turnover 497.8 569.5 +14.4 Higher sales in USA and S&W fresh pineapple exports Gross profit 133.2 147.6 +10.8 Same as above Gross margin (%) 26.8 25.9 -0.9ppt Higher costs in DMPL ex-DMFI EBITDA 73.1 78.2 +6.9 Higher gross profit and low
Slide 9: 4Q FY2022 Turnover Analysis
4Q FY2022 Turnover Analysis 2% Americas 25% 73% Asia Pacific Europe Americas +25.5% ▪ Branded retail sales rose 25% while foodservice sales grew by 18%; Increased product supply and merchandising support for the Easter holiday ▪ In Americas, branded retail accounted for 73% while foodservice was 5%
Slide 10: FY2022 Results
FY2022 Results
Slide 11: FY2022 Results Summary
FY2022 Results Summary ▪ Sales of US$2.3bn, +8% Sales % Change Americas +11 Philippines -4 (in peso terms -1) S&W +13 India (equity accounted) -2 (in rupee terms -2)* *Del Monte Foods Pvt Ltd (India) discontinued the fresh business. Del Monte packaged business sales were up 6% in both USD and in rup
Slide 12: FY2022 Results
FY2022 Results In US$m FY2021 FY2022 Chg (%) Comments Higher sales in USA, S&W fresh and packaged Turnover 2,162.7 2,342.1 +8.3 products Higher sales, better sales mix in USA, price increases Gross profit 556.0 622.7 +12.0 to offset inflation Gross margin (%) 25.7 26.6 +0.9ppt Same as above EBITDA 3
Slide 13: FY2022 Turnover Analysis
FY2022 Turnover Analysis 2% Americas 27% Asia Pacific 71% Europe Americas +11.4% ▪ Branded retail sales grew by 13% offsetting reduced sales of non- core private label as planned; Foodservice sales also increased significantly by 36% ▪ In Americas, branded retail accounted for 73% while foodservice
Slide 14: Dividends
Dividends ▪ The Board approved a final dividend of 1.70 US cents (US$0.0170) per share to Common Shareholders representing 33% of FY2022 net profit before preference dividends or 41% of net profit after preference dividends ▪ This dividend represents a 42% increase over last year’s dividend For the
Slide 15: Market Updates for 4Q and FY2022
Market Updates for 4Q and FY2022
Slide 16: Del Monte Foods USA 4Q FY2022
Del Monte Foods USA 4Q FY2022 ▪ DMFI’s 4Q sales were US$411.0m or 72% of Group turnover ✓ Sales significantly higher by 25% on strong branded retail sales with canned vegetable and fruit volume growing by 23%, led by increased product supply and merchandising support for the Easter holiday ✓ Del Mon
Slide 17: Del Monte Foods USA FY2022
Del Monte Foods USA FY2022 ▪ DMFI’s full year sales were US$1.7bn or 70% of Group turnover ✓ Sales up 12% driven by increases across all major segments led by canned vegetable and fruit following improvement in supply and distribution gains ✓ Branded retail and foodservice sales were up 13% and 36%,
Slide 18: Del Monte Foods USA: Inflation Has Not Interrupted Profit Momentum
> Del Monte Foods USA Inflation Has Not Interrupted Profit Momentum * Topline Growth is intact ¢ Product set is on-point with Consumer Behavior ¢ Multi-channel white space * Pipeline of new products and new brands in tiered portfolio * Strategic Pricing for F23 already executed June I, effective Sep
Slide 19: USA Market Share
USA Market Share Market Share Market Share Canned Vegetable (#1) Canned Fruit (#2) Fruit Cup Snacks (#2) Market Share Market Share Canned Tomato (#3) Broth (#2) ▪ Del Monte brand performed well in its traditional canned categories as consumers continue to reach for trusted brands and we continue to
Slide 20: USA Vegetables: Category/Share Trends
USA Vegetables: Category/Share Trends 20
Slide 21: USA 4Q Marketing Highlights
USA 4Q Marketing Highlights Veggieful Support during Frozen Food Month at Retail Veggieful Riced Veggies featured as Winner in March print issue and website of Clean Eating Magazine. This is part of clean Eating Magazine’s 11th Annual Clean Choice Awards. Additionally, Clean Eating Magazine announce
Slide 22: USA 4Q Marketing Highlights
USA 4Q Marketing Highlights Easter Support National FeedFeed Partnership - Sponsored The FeedFeed's Easter Menu, featuring three Del Monte Deluxe Gold Pineapple recipes - Featured prominently on their website, social media, and weekly email Retailer Easter programming Website Banner Pyrex partnershi
Slide 23: USA Innovation
USA Innovation Innovation accounts for 5.3% of DMFI’s total sales 23
Slide 24: USA Tiered Portfolio Strategy
USA Tiered Portfolio Strategy 24
Slide 25: Del Monte Philippines 4Q and FY2022
Del Monte Philippines 4Q and FY2022 ▪ DMPL’s 2nd largest and most profitable subsidiary, Del Monte PhiIippines, achieved sales of US$170.3m for 4Q, down 1.6% in peso terms, and US$729.5m for full year, up 3% ➢ Amidst an inflationary market, Philippine sales of US$68.3m in 4Q were down 7% in peso ter
Slide 26: Philippines Market Share
Philippines -0.9pt -6.4pts Market Share Market Share Market Share Packaged Pineapple (#1) Canned Mixed Fruit (#1) RTD Juices ex foil pouches (#1) -1.1pts -0.7pt Market Share Market Share Tomato Sauce (#1) Spaghetti Sauce (#1) ▪ Del Monte continues to enjoy strong market share leadership across all i
Slide 27: Philippines Marketing
Philippines Marketing Del Monte Mixed Fruit - Del Monte Spaghetti Sauce - Staylebration Digital Expanded consumption beyond campaign fresh special occasions with multimedia materials to educate communication of (1) superiority moms on easy recipes behind Iba Ang Sarap (Taste to do with Del Monte Dif
Slide 28: Philippines Foodservice
Philippines DMPI Food Service Foodservice Regaining vitality as economy opens NEW National Account Business • 4Q sales grew by 14% vs prior year quarter with gross margin remaining healthy. • Full year sales grew strongly by 27% vs prior year. Sales are now at 88% of pre-pandemic level. Gross margin
Slide 29: Philippines E-commerce
Philippines DMPI Food Service E-commerce A key emerging channel that will be a critical part of Philippine economy. Over the past 2 years, Del Monte has grown its e-commerce 13X, focusing on marketplaces. Accelerating 1.2 300 Volume 1 Growth 250 0.8 MARKETPLACES: Winning in e-commerce 200 key market
Slide 30: Philippines - Innovation
Philippines - Innovation Innovation Now Accounts for 6.5% of Total FY2022 Sales Potato Crisp Flavor Range: Original, Spicy; New in FY20023: Cheese, BBQ, 20g Mr. Milk Flavor Range: Plain, Apple, Strawberry, Mango; Fruity Munchsters New in FY2023: Orange Flavor Range: Strawberry, Orange Del Monte Vina
Slide 31: International - Innovation
International - Innovation NICE FRUIT Frozen Snacks Japan Middle East Japan Europe CANADA US Saudi Singapore China Hongkong 7-11 McDonald’s 7-Eleven Lamex/KFC McDonald’s Del Monte Arabia Popeyes Family Mart, U-Select Sticks Dubai, Qatar, KSA Chunks Canada Foods Aroma Parkinson’s, Vango, Frio Jialeji
Slide 32: S&W Market Overview
S&W Market Overview ▪ Our high quality, premium MD2 fresh pineapple makes us the largest fresh pineapple exporter to China, with 53% volume share ▪ One of the 3 biggest fresh pineapple exporters to Japan, South Korea and the Middle East ▪ E-commerce and digital are growing with North Asia having the
Slide 33: S&W 4Q and FY2022
S&W 4Q and FY2022 ▪ 4Q sales of S&W business grew by 8%, with fresh pineapple growing by 18% driven by China and South Korea ▪ Full year sales of S&W branded business grew by 13% on higher fresh pineapple, canned pineapple and juice sales S&W Pineapple in Walmart China ▪ S&W pineapples sold in China
Slide 34: Sustainability
Sustainability Sustainability Goals Net Zero Emissions Carbon Negative GPS Installation DMPL’s five main DMPL is committed to DMPI’s pineapple DMPI installed GPS in sustainability goals: Net Zero Emission by operations have been 31% of third party trucks 2050 to address climate independently verifie
Slide 35: Sustainability
Sustainability Reducing Emissions Innovating Packaging Conserving Water Diverting Waste Following operations Setting aggressive goals: Investing in water reduction 25+ million pounds of food footprint optimization, - By 2030: Convert plastic systems: diverted from landfills due conducted Scope 3 pac
Slide 36: Outlook
Outlook ▪ Strengthen our core business, expand the product portfolio, in response to consumer preference for health and wellness, and grow our branded business ▪ More product availability through a more efficient supply chain, better distribution and expanded sales channels including e-commerce ▪ DM