Century Pacific Food, Inc. · PSE:CNPF
Century Pacific Food — 9M 2024 Earnings Presentation
29 slides from Century Pacific Food's earnings presentation, Nov 6, 2024
Slide 1: Nourishing Lives, Investing in the Future
Nourishing Lives, Investing in the Future CNPF 9M24 RESULTS PRESENTATION NOVEMBER 2024
Slide 2: Latest Financial Performance
LATEST FINANCIAL PERFORMANCE
Slide 3: 9M 2024 Financial Results Highlights
9M 2024 FINANCIAL RESULTS HIGHLIGHTS BRANDED OEM GROSS REVENUE NET INCOME REVENUE REVENUE MARGIN 9M +13% +6% +43% +240 +14% Growth year- bps on-year 56.9B 44.2B 12.7B 26.6% 5.3B 3Q Growth year- +13% +6% +44% +310 bps +15% on-year 19.2B 14.7B 4.5B 27.7% 1.6B 3
Slide 4: Topline Continues to Post Growth Amidst OEM Recovery and Branded Resilience
TOPLINE CONTINUES TO POST GROWTH AMIDST OEM RECOVERY AND BRANDED RESILIENCE Revenue Growth Split 9M24 Revenue Breakdown Quarterly Revenue Trend In PHP B In PHP B 13% YoY 2% QoQ 9M24 vs 9M23 Branded OEM 3Q24 vs 2Q24 19.6 19.2 2.6 56.9 3.8 18.2 50.5 18% 22% Current 16.7 +43% YoY +6% YoY Year 17.8 vs 9
Slide 5: OEM Topline Continued to Recover as Commodities Ease
OEM TOPLINE CONTINUED TO RECOVER AS COMMODITIES EASE OEM YoY Revenue Trend Skipjack Tuna Price Trend OEM Quarterly Revenue Trend In PHP B In PHP B 44% YoY 3Q24 vs 3Q23 43% YoY 9M24 vs 9M23 4% QoQ 10% YoY 3Q24 vs 2Q24 9M23 vs 9M22 12.7 4.5 4.3 9.9 3.9 3.7 8.9 3.2 3.1 3.0 2023 2.6 2.6 2024 Supply chai
Slide 6: Branded Segment Remained Resilient as Consumers Opt for Value for Money Goods
BRANDED SEGMENT REMAINED RESILIENT AS CONSUMERS OPT FOR VALUE FOR MONEY GOODS Branded YoY Revenue Trend Branded Quarterly Revenue Trend Market Share Trends In PHP B In PHP B 4% QoQ Canned 3Q24 vs 2Q24 84% 85% Tuna 6% YoY 15.3 9M24 vs 9M23 +70 bps 14.7 #1 12% YoY Trailing 14.2 Dec '23 - Sep '24 9M23
Slide 7: Consumers Learn to Cope with Inflationary Pressures, Supporting Domestic Demand
CONSUMERS LEARN TO COPE WITH INFLATIONARY PRESSURES, SUPPORTING DOMESTIC DEMAND 290 Inflation has come down as rice prices trend lower, but Value-seeking consumers are economizing How are consumers coping 280 consumer sentiment has yet to improve significantly and prioritizing spending 270 Prioritiz
Slide 8: Bottomline Growth Closely Mirrored Rise in Sales as Gross Margin Expansion Reinvested in Opex
BOTTOMLINE GROWTH CLOSELY MIRRORED RISE IN SALES AS GROSS MARGIN EXPANSION REINVESTED IN OPEX Sustained Net Income Growth Margins Reflecting CNPF’s Reinvestment Strategy In PHP B Gross Margin 26.6% 24.2% +240bps Gross margin improves YoY as input 14% YoY 9M24 vs 9M23 costs move favorably Opex to Sal
Slide 9: Healthy Cash Generated from Operations
HEALTHY CASH GENERATED FROM OPERATIONS USED FOR DEBT REPAYMENT, CAPACITY EXPANSION, AND HIGHER DIVIDENDS 9M 2024 Cash Flows In PHP M Dividends of Php0.96 per share 1.2B net payment of debt, interest Increase in receivables and Capacity inventory offset expansion, increase in CHI payables acquisition
Slide 10: Business Highlights & FY 2024 Outlook
BUSINESS HIGHLIGHTS & FY 2024 OUTLOOK
Slide 11: Steadfast in Our Strategic Growth Pillars
STEADFAST IN OUR STRATEGIC GROWTH PILLARS PROSPER FUTURE- SUSTAINABLY STRENGTHEN DIVERSIFY PROOF OUR BRANDS
Slide 12: Brand Building and Demand Generating Activities to Support Growth
BRAND BUILDING AND DEMAND GENERATING ACTIVITIES TO SUPPORT GROWTH Strengthened Communications for Core Brands Promotional Bundles & Deals in Retail Argentina Corned Beef Campaign • In addition to value, highlighting consumer preference for Argentina Corned Beef • Giving back to the consumer via vari
Slide 13: Brand Building and Demand Generating Activities to Support Growth
BRAND BUILDING AND DEMAND GENERATING ACTIVITIES TO SUPPORT GROWTH Communications to Support Growth of Dairy Business Angel x BINI Holiday Campaign Birch Tree Fortified Campaign • Launching Angel holiday campaign with leading celebrities • Leveraging company-wide portfolio to recruit premier endorser
Slide 14: Supporting Innovations and Diversification Across the Portfolio
SUPPORTING INNOVATIONS AND DIVERSIFICATION ACROSS THE PORTFOLIO Diversifying and Future-Proofing the Business Expanding refrigerated line Enhancing regional play in VisMin Reinforcing communications Entering new categories in pet food with Century Tuna Nuggets with Wow Meaty Corned Beef for Birch Tr
Slide 15: Investing in Capacity
INVESTING IN CAPACITY Acquisition of Coco Harvest, Inc. At least 1,500 quality manufacturing jobs With expected increase in demand for plant auxiliary services Diversified raw material sourcing While providing market access to coconut farmers in the region Room for further expansion To serve require
Slide 16: Embracing Sustainability and Good Governance Practices
EMBRACING SUSTAINABILITY AND GOOD GOVERNANCE PRACTICES Balancing the Needs of Stakeholders & Thinking Win-Win Launched Save Our Coconuts Program with Coco Mama Received Two Golden Arrows from the Institute of Corporate to aid smallholder coconut farmers Directors for upholding ACGS standards 16
Slide 17: Thank You!
@ tHank your ® & nstitutional Consumer Staples Sector, Rest of Asia hvestor 3rd Best Company Board - Buyside PLACE Best CEO - Overall Ted Po Best CFO - Overall Chad Manapat Best Investor Relations - Overall MOST HONORED COMPANY 2nd Best CEO - Buyside PLACE ~~ Best CFO - Buyside Chad Manapat Best ESG
Slide 18: 2024 Outlook
2024 OUTLOOK 2024 Outlook 2024 Growth Drivers Growth in the Topline low to mid-teens • Demand for consumer staples expected to remain resilient • OEM recovery with easing commodities • Margin improvements to be reinvested in topline growth – innovations and demand generating activities 2023 - 2024F
Slide 19: 2025 Preliminary Outlook: 10-15% Topline & Bottomline Growth
2025 PRELIMINARY OUTLOOK 10-15% TOPLINE & BOTTOMLINE GROWTH Balancing margin Demand to remain movements and opex resilient as inflationary spending to deliver pressures ease bottomline growth in lockstep with topline growth
Slide 20: Key Takeaways
KEY TAKEAWAYS ON TRACK TO DELIVER LOW TO MID-TEENS GROWTH SUPPORTED BY AN ALL-WEATHER PORTFOLIO Topline growth on Gross margin Reinvestment into the back of OEM expansion due to demand generation Exports recovery favorable leading to profit and consistent downtrend in input growth in line with Brand
Slide 21: Nourishing Lives, Investing in the Future
Nourishing Lives, Investing in the Future CNPF 9M24 RESULTS PRESENTATION NOVEMBER 2024
Slide 22: Annex
ANNEX
Slide 23: Other Financials
OTHER FINANCIALS
Slide 24: 9M 2024 Summarized P&L
9M 2024 SUMMARIZED P&L In PHP Mill 9M 2023 9M 2024 Change YoY Net Revenues 50,450 56,948 13% • Revenues grew 13% mainly driven by OEM Cost of Sales recovery 38,238 41,791 9% • Branded up 6% as demand remains resilient, Gross Profit 12,212 15,157 24% driven by essentials and staples nature of Operati
Slide 25: 9M 2024 Summarized Balance Sheet
9M 2024 SUMMARIZED BALANCE SHEET In PHP Mill FY 2023 9M 2024 In PHP Mill FY 2023 9M 2024 Cash 5,050 2,764 Trade and Other Payables 10,452 14,559 Receivables 9,387 11,542 Inventory 16,902 20,218 Notes Payable - Current 2,877 1,677 Current Assets 34,476 38,280 Long-Term Loan 3,157 3,147 PPE 8,980 9,24
Slide 26: 9M 2024 Summarized Cash Flow
9M 2024 SUMMARIZED CASH FLOW In PHP Mill 9M 2023 9M 2024 • Increase in working capital as higher Profit before Tax 5,440 6,210 receivables and inventories offset higher Depreciation & trade and other payables Amortization 1,267 1,369 Working Capital Change (1,189) (2,030) • Strong cash generation su
Slide 27: CCC Stable vs YE 2023
*Working capital days CCC STABLE VS YE 2023 Working Capital Receivables Inventory Payables & Cash Conversion Cycle & Receivable Days & Inventory Days & Payable Days* 97 95 51 57 121 135 75 97 15,836 17,200 9,387 11,542 16,902 20,218 10,452 14,559 FY23 9M24 FY23 9M24 FY23 9M24 FY23 9M24 • Cash conver
Slide 28: Financial Ratios
FINANCIAL RATIOS 0.18 0.14 • Decrease in gearing ratio due to decrease in debt, comfortable levels Gearing (x) maintained FY23 - 9M24 0.06 • Slightly higher net gearing ratio as cash Net Gearing (x) 0.03 is used for dividends and acquisitions FY23 - 9M24 2.50 2.28 • Current ratio decreased vs YE fig
Slide 29: Ortigas Center, Pasig City, Philippines
Ortigas Center, Pasig City, Philippines investorrelations@centurypacific.com.ph +632 8633 8555 www.centurypacific.com.ph http://edge.pse.com.ph www.linkedin.com/company/century-pacific-food-inc-/ www.facebook.com/CenturyPacificFoodInc This document is highly confidential and being given solely for y