Slide 1: 9M CY2019 Unaudited Results Investor Briefing
9M CY2019 Unaudited Results Investor Briefing October 24, 2019 Irwin C. Lee Mike P. Liwanag President and CEO Senior Vice President
Slide 2: Agenda
AGENDA 1 9M CY2019 Unaudited Financial Results 2 Our Expectations 2
Slide 3: Healthy domestic business continues to support topline growth
URC Healthy domestic business continue to support topline growth Sales Q1 Q2 Q3 9M CY 2019 33.3 33.7 32.7 99.8 Topline was driven by the strong progress in our % +2% +6% businesses in the Philippines +7% +5% CY 2018 31.2 33.2 30.8 95.2 EBIT Q1 Q2 Q3 9M CY 2019 4.0 3.6 3.4 11.0 Operating income impro
Slide 4: BCF Philippines: Growth engine remains robust with all cylinders firing
BCF Growth engine remains robust with all cylinders firing PHILIPPINES Sales Q1 Q2 Q3 9M CY 2019 15.6 15.6 15.7 46.9 Sales was driven by strong performances across all % +11% +9% +7% categories with Snack foods and RTD accelerating in Q3 +9% CY 2018 14.1 14.3 14.6 43.1 Q1 Q2 Q3 9M Q1 Q2 Q3 9M SNACKF
Slide 5: BCF International: Profit growth bounced back in Q3
BCF Profit growth bounced back in Q3 INTERNATIONAL Sales Q1 Q2 Q3 9M • Topline held back by FX by -440 bps and -407 bps in Q3 & 9M CY 2019 10.2 10.1 10.8 31.1 • Decline in overall topline was mainly driven by Thailand • Thailand already making progress with tapering decline % in Q3 -3% -5% -0.4% -3%
Slide 6: AIC: Higher flour volumes and strong Animal Nutrition & Health performance
Higher volumes in Flour along with the strong AIC performance in Animal Nutrition & Health (ANH) boosted overall topline AIG CFG Sales vs SPLY COMMODITIES +9% 20.8 • Topline was driven by Flour due to higher 19.1 volumes 10.8 +2% • EBIT was driven by the higher volumes in Flour 10.6 and Sugar 8.4 10
Slide 7: Strong Balance Sheet and Cash Position
Strong Balance Sheet and Cash Position Cash and Financial Debt • Net debt of Php 29.1B due to remaining 42.3 41.2 long term debt in Oceania 15.0 12.1 • Gearing ratio of 0.48 • Major cash disbursements for CAPEX and 9M CY18 9M CY19 Dividends payment Cash + Financial Assets at FVPL + AFS Financial Deb
Slide 8: Our Expectations
Our Expectations 1. BCF PH: reinvestments in brand building & distribution will continue enabled by a sustained topline growth 2. BCF International: improvement in profits will continue while topline growth is expected to improve in Q4. 3. AIC is expected to maintain profit contribution for the year
Slide 9: Thank You
THANK YOU Gu Del ry, (
Slide 10: Balance Sheet
Balance Sheet 9M 2019 CY 2018 (Php Millions) (Unaudited) (Audited) Cash & cash equivalents 12,131 13,494 (including Financial assets at FVPL and FVOCI) Other current assets 43,005 40,966 Property, plant, and equipment 57,136 51,950 Other noncurrent assets 45,810 45,525 TOTAL ASSETS 158,082 151,936 C
Slide 11: Income Statement
Income Statement 9M 2019 9M 2018 YoY (Php Millions) (Unaudited) (Restated) NET SALES 99,785 95,188 5% Cost of Sales 70,192 67,439 4% GROSS PROFIT 29,593 27,749 7% Operating Expense -18,610 -17,666 5% OPERATING INCOME 10,983 10,082 9% • Increase in net income was Equity in net income of JVs -39 -91 a
Slide 12: Divisional Financials
Divisional Financials SALES EBIT EBIT MARGIN (Php Millions) 9M 2019 9M 2018 YoY 9M 2019 9M 2018 YoY 9M 2019 9M 2018 bps Branded Consumer Foods 79,017 76,114 4% 8,816 8,006 10% 11.2% 10.5% 64 Total Philippines 47,955 44,214 8% 6,078 5,448 12% 12.7% 12.3% 35 Philippines 46,948 43,070 9% 6,116 5,427 13
Slide 13: Value Market Shares
Value Market Shares Philippines Thailand MARKET CATEGORY MARKET SHARE #1 #2 #3 CATEGORY #1 #2 #3 SHARE Biscuits 25.7% URC 11.3% 8.1% Snacks 35.1% URC 22.5% 5.8% Wafers 24.0% URC 14.6% 9.6% Candies 26.4% URC 12.4% 10.4% Vietnam Chocolates 21.2% URC 13.3% 9.0% CATEGORY MARKET SHARE #1 #2 #3 RTD Tea 14