Emperador Inc. · PSE:EMI
Emperador — 9M 2020 Earnings Presentation
19 slides from Emperador's earnings presentation, 2020
Slide 1: Emperador Inc. 9M 2020 Results Briefing
EMPERADOR INC. 9M 2020 Results Briefing
Slide 2: Agenda
Agenda 1 Snapshot 2 Backdrop 3 9M 2020 Financials 4 Takeaway
Slide 3: Agenda
Agenda 1 Snapshot 2 Backdrop 3 9M 2020 Financials 4 Takeaway
Slide 4: 3Q 2020 Stellar Performance
3Q 2020 Stellar Performance “ Following its 2Q20 performance, EMP continued to deliver robust earnings growth at an even accelerated pace in 3Q20 (+36% QoQ and +26% YoY) despite prevailing quarantines, liquor bans, limited on-trade sales and restricted air travel. 4
Slide 5: Agenda
Agenda 1 Snapshot 2 Backdrop 3 9M 2020 Financials 4 Takeaway
Slide 6: Worldwide COVID-19 Pandemic Challenges
9M 2020 Worldwide COVID-19 Pandemic Challenges Restricted Global Travel Lockdown Liquor ban Closure of on-premise outlets, Impacted travel retail sales 10% of Philippines sales Total liquor ban in the 14% of W&M 2019 revenue 10% of W&M UK sales Philippines 3 out of 9 months 45% of Spain sales
Slide 7: Agenda
Agenda 1 Snapshot 2 Backdrop 3 9M 2020 Financials 4 Takeaway
Slide 8: Highlights
9M 2020 Financials – Highlights Sustained robust performance amid pandemic woes +1.9% P 5.9 billion P34.5 Revenue Growth Net Income* billion 68% Brandy +11% 32% Whisky +P600 million Revenues Revenue Breakdown Earnings Growth * Net income attributable to parent *Attributable to parent
Slide 9: 9M 2020 Financials
9M 2020 Financials Recorded compellingly robust and spectacular earnings growth: +11% in 9M20 underpinned by +26% increase in 3Q20 3Q20 YoY 9M19 9M20 YoY Commentary Strong international whisky sales lift Revenues 12,927 +4% 33,828 34,467 +2% performance Gross Profit 4,736 12,123 11,723 Lower blended
Slide 10: 9M 2020 Financials
9M 2020 Financials Revenues Gross Profit & Margin 39.5% 37.2% 36.5% 33,828 +2% 34,467 34.7% 12,123 -3% 11,723 12,372 +4% 12,927 -1% 4,800 4,736 3Q19 3Q20 9M19 9M20 3Q19 3Q20 9M19 9M20 EBITDA & Margin Net Income & Margin 25.4% 27.1% 19.7% 23.3% 24.2% 16.3% 15.6% 17.0% 7,873 8,335 5,869 +6% 5,271 +11%
Slide 11: 9M 2020 Financials – Segment Breakdown
9M 2020 Financials – Segment Breakdown Fantastic whisky and brandy showing amid pandemic woes Revenues Gross Profit EBITDA Net Income 9M19 9M20 9M19 9M20 9M19 9M20 9M19 9M20 24,087 23,488 7,981 7,746 5,742 5,764 3,694 3,858 Brandy (71%) (68%) (66%) (66%) (73%) (69%) (70%) (66%) Whisky 9,741 10,979 4
Slide 12: 9M 2020 Financials – Brandy Segment
9M 2020 Financials – Brandy Segment 7% earnings growth in 3Q20 YoY despite liquor bans across the Philippines 3Q20 YoY 9M19 9M20 YoY Commentary Only -2% in 9M20 in spite of prevailing Revenues 8,587 -2% 24,087 23,488 -2% liquor bans in Phils; Brandy revenues +17% QoQ Gross Profit 2,991 7,981 7,746 G
Slide 13: 9M 2020 Financials – Whisky Segment
9M 2020 Financials – Whisky Segment Fantastic sales and earnings growth despite very limited on-trade and travel retail sales 3Q20 YoY 9M19 9M20 YoY Commentary Growth driven by Asia especially China, UK, Revenues 4,341 19% 9,741 10,979 13% and developing markets like Russia Gross Profit 1,745 4,142
Slide 14: 9M 2020 Financials – Whisky Segment
9M 2020 Financials – Whisky Segment Fantastic sales and earnings growth despite very limited on-trade and travel retail sales 9M19 9M20 YoY Commentary Growth driven by Asia especially China and Revenue £149.9 £175.7 17% developing markets like Russia Earnings would have been better had on-trade and
Slide 15: Net Income - Whisky Segment
Net Income - Whisky Segment Whisky segment recorded an all-time high quarterly net income in spite of COVID-19 woes In Pm 1,200 2015 2016 2017 2018 2019 2020 995 1,000 800 694 656 610 600 571 580 454 435 411 404 390 400 342 354 352 302 322 314 266 217 203 195 200 163 33 - • In million Php 1Q 2Q 3Q 4
Slide 16: 9M 2020 Financials – Cash and Debt
9M 2020 Financials – Cash and Debt Improved net gearing Net Debt Cash Debt Net Debt Commentary to Equity 9M20 7,439 33,338 25,899 39% Lower net debt to equity due to loan repayment plus reduction in equity-linked securities (ELS) to P3.4bn from P5.2bn previously with the 2019 7,741 37,220 29,479 46%
Slide 17: Agenda
Agenda 1 Snapshot 2 Backdrop 3 9M 2020 Financials 4 Takeaway
Slide 18: Takeaway
Takeaway Underlying corporate strengths allow EMP to rise above the pandemic Business Brand Cost Strength Strength Management • Global footprint • Brands are sought • Optimize cost • Diversified after by consumers • Rationalize product portfolio • Exhibiting strong expenses • Management consumer bra
Slide 19: Emperador Inc. 9M 2020 Results Briefing
EMPERADOR INC. 9M 2020 Results Briefing