Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — FY2018 Earnings Presentation
19 slides from Fraser & Neave's earnings presentation, 2018
Slide 1: F&N FY2018 Financial Highlights
F&N FY2018 Financial Highlights
Slide 2: Important notice
Important notice Certain statements in this Presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual res
Slide 3: FY2018 Performance Highlights
FY2018 Performance Highlights Earnings before interest and tax (“EBIT”) surged 26% to $213.5 million underpinned by broad-based growth • Strong performance in the full-year ended 30 September 2018 (“FY2018”) • Revenue up 2% to $1,926.5 million • EBIT rose 26% year-on-year to $213.5 million • Support
Slide 4: Group Financial Highlights
FY2018 Group Financial Highlights Revenue Earnings before interest and tax (million) (million) $1,926.5 $213.5 ▲ 1.5% ▲ 25.6% Profit after tax Gearing (million) (%) $179.1 10.8% ▼86.5%1 ▲ 104.2% Dividend per share Earnings per share (basic) (cents) (cents) 4.52 8.43 same as FY2017 ▲ 25.4% 1 Absence
Slide 5: Revenue grew 2%
FY2018 Revenue grew 2% Strong Dairies sales and favorable translation effects lifted revenue $1,927m Revenue by Business Segment Revenue by Business Segment $1,898m ($) (%) Dairies Publg 60% & +4.6% Print 15% $1,927m Others $1,157m $1,105m 0% Beverages +1.5% 25% -2.2% Revenue by Geography (%) $488m
Slide 6: Revenue | Beverages
FY2018 Revenue | Beverages Revenue dropped 2% on weak market conditions Beverages Malaysia (+1%; -3% in constant FY2018 Revenue currency) – Stronger Ringgit lifted revenue -3% -5% -29% -5% -2% – In constant currency, revenue fell due to $499m $488m $473m market contraction, intense price competition
Slide 7: Revenue | Dairies
FY2018 Revenue | Dairies Revenue increased 5%; broad-based growth across all markets Dairies Malaysia (+6%; +2% in constant FY2018 Revenue currency) +5% – Double-digit growth in Export boosted sales $1,105m 2% 2% 2% +2% $1,157m Sin/Others – Export benefited from entry into new $243m $249m markets, a
Slide 8: Revenue | Publishing & Printing
FY2018 Revenue | Publishing & Printing • Revenue fell 4% due to • Cessation of a non-performing business in Australia • Absence of press and books concession at Singapore Changi Airport -4% $293m $281m FY2017 FY2018 8 Full-year ended 30 Sep 2018
Slide 9: EBIT rose 26%
FY2018 EBIT rose 26% Strong contributions from Dairies and improved Soft Drinks Malaysia earnings lifted profit EBIT by Business Segment FY18 EBIT by Business Segment ($) FY17 EBIT (%) EBIT Margin 18.5% 20.0% Margin Dairies 11.1% 9.0% 108% Publg -0.8% -0.1% & $231m Print FY17 FY18 $213m -1% EBIT EBI
Slide 10: EBIT | Beverages
FY2018 EBIT | Beverages PBIT breakeven; Beverages Malaysia achieved profit turnaround Beverages Malaysia (+130%; +121% in constant currency) EBIT: Beverages – EBIT surged due to favourable sugar costs, 121% -93% operational cost savings and absence of last year’s nm +79% +94% restructuring costs $(0
Slide 11: EBIT | Dairies
FY2018 EBIT | Dairies Earnings increased 13% on full-year profit contribution from Vinamilk and strong Dairies Thailand performance Vinamilk EBIT +13% $231m – Benefited from full-year profit recognition of $204m 79% 18% Vinamilk’s profit $5m -10% 19% Others, $9m Vinamilk Dairies Malaysia (-10%; -14%
Slide 12: EBIT | Publishing & Printing
FY2018 EBIT | Publishing & Printing • Losses before interest and tax narrowed substantially to $1.2 million • Structural cost reduction and leaner organization helped improve printing’s profitability • Aided by profit contribution from higher margin products and absence of losses from non-performing
Slide 13: Maintained a strong financial position
Maintained a strong financial position • Borrowings increased to finance purchases of Vinamilk Key Financials shares FY2017 FY2018 • The Group owns 20.01% of Vinamilk shares • Proposed final dividend of 3.0 cents per share, bringing Total Equity1 $3,132m $3,170m full-year dividend to 4.5 cents, same
Slide 14: Key Developments: Investing for Growth
KEY DEVELOPMENTS: Investing for Growth
Slide 15: F&N re-enters Myanmar with greenfield brewery
F&N re-enters Myanmar with greenfield brewery 74.9% INTEREST EMERALD BREWERY MYANMAR LIMITED • Established a joint-venture company in Myanmar @ October 2018 • To invested approximately US$50 million in a greenfield brewery with an initial capacity of 500,000hl ~US$ CAPEX 50m • Production and distrib
Slide 16: New Launches
New Launches Innovation: Flavour and Packaging 100PLUS Blackcurrant OYOSHI F&N Fun Flavours 100PLUS 100PLUS Reduced Sugar Malaysia Malaysia Singapore Limited edition Lunar New Year 100PLUS ACTIVE Powder Limited edition Lunar New products: F&N Orange Crush & F&N Year packaging Malaysia Sarsi 16 Full-
Slide 17: New Launches: Reduced and zero sugar beverages
New Launches Continued to Innovation: Flavour and Packaging introduce REDUCED and ZERO sugar content beverages (from left to right) • 100PLUS Zero Sugar • 100PLUS Reduced Sugar • F&N Lychee Pear Reduced Sugar • F&N Sarsi Zero and F&N Orange Zero • FRUIT TREE FRESH 50% Less Sugar & Calories in Apple
Slide 18: Strengthening market positions in primary markets
Strengthening market positions in primary markets RM NEW ASEPTIC COLD-FILLING LINE, Shah Alam 90.5 • State-of-the art cold-filling line has a maximum capacity of 720,000 bottles daily MILLION • Uses thinner and lightweight containers and reduces the use of PET resin material by 40% • Reduces packagi
Slide 19: Analyst and media contact
Analyst and media contact: Jennifer Yu Head, Investor Relations T: (65) 6318 9231 E: jenniferyu@fngroup.com.sg Fraser and Neave, Limited