Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Q1 2013 Earnings Presentation
17 slides from Del Monte Pacific's earnings presentation, Apr 30, 2013
Slide 1: First Quarter 2013 Results
Del Monte Pacific Limited First Quarter 2013 Results 30 April 2013 1
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 Executive Summary 1Q 2013 Results Market Updates Bonus Share Issue Subsequent Event Outlook Del Monte Philippines and S&W Asia Products 3
Slide 4: Executive Summary
Executive Summary DEL MONTE PACIFIC FIRST QUARTER HIGHER SALES DRIVEN BY BRANDED BUSINESS • 1Q sales up 17% to US$87m driven by branded business which grew at a higher rate of 27% • Operating profit of branded segment increased by 58% • Strong consumer preference for Del Monte branded products in th
Slide 5: First Quarter 2013
First Quarter 2013 1Q 1Q In US$m Chg (%) Comments 2012 2013 Higher sales due to branded Turnover 74.7 87.4 +17.0 business mainly the Philippines and S&W fresh Higher volume and better sales Gross profit 17.6 19.8 +12.2 mix offset higher logistics cost Weak performance in non branded segment and high
Slide 6: 1Q Turnover Analysis
1Q Turnover Analysis 68% 32% Branded Non Branded Branded +27.1% • Growth across major product categories in the Philippines – processed fruit, culinary and canned beverage segments; as well as strong sales of S&W branded fresh business Non Branded +0.1% • Weak demand in export markets, in particular
Slide 7: Philippine Market 1Q 2013 Updates
T Philippine Market 1Q 2013 Updates • Sales of processed fruit, culinary and canned beverage in the Philippines continued their strong momentum, up 34% YoY • Buoyant domestic economy led to higher volume • Aggressive advertising (changed A&P timing to spend more in 1Q instead of 2H to start brand bu
Slide 8: Del Monte Kitchenomics Tops Social Media Brands in the Philippines
DEL MONTE KITCHENOMICS TOPS SOCIAL MEDIA BRANDS IN THE PHILIPPINES! BE A FAN NOW TO BE PART OF THE Average Post 0.219 % ' MOST ACTIVE Bore. FACEBOOK COMMUNITY IN THE 617% 1.042440 PHILIPPINES! 0.9755 % https://www.facebook.com/ 0.9676 9% DelMonteKitchenomics Monthly Change in Engegeremea Kite Engage
Slide 9: S&W 1Q 2013 Updates
T S&W 1Q 2013 Updates • S&W fresh sales +20% driven by Japan, Middle East and Singapore • Inroads into the Japanese wholesale and retail markets • Brand building with sampling activities in key markets of Korea, Japan and China • S&W processed sales down due to delays in product listings by Middle E
Slide 10: India 1Q 2013 Updates
T India 1Q 2013 Updates • Higher Del Monte branded processed sales • Better sales mix, reduced overhead and tighter management of expenses • As a result, the group recognised an equity loss of US$1.1m, lower than prior year quarter’s US$1.7m
Slide 11: 1Q Margins
1Q Margins Gross margin % Lower PJC price Margin and higher logistics cost Operating margin 30 Losses in the non-branded 23.6 22.6 segment and higher A&P spend in the Philippines due to change in timing Net margin 20 Same as operating margin but offset by lower loss in Indian 11.5 affiliate 9.1 10 5
Slide 12: 1Q Cash Flow Variance Analysis
1Q Cash Flow Variance Analysis Additional Investment Working in 4Q12 Operations Cap Tax Capex FieldFresh Dividend Others 1Q13 -US$116.0m -US$149.6m Net Debt Net Debt +11.6m -23.0m -0.6m -2.6m -0.7m -16.3m -2.0m
Slide 13: Bonus Share Issue
Bonus Share Issue • On 27 February 2013, declared bonus issue of 2 bonus shares for every 10 existing shares • To increase liquidity and to reward shareholders for their continuing support • Bonus shares credited to shareholders’ account on 19 April 2013 and started trading on the same day • Details
Slide 14: Subsequent Event
Subsequent Event • Seeking a secondary listing on the Philippine Stock Exchange (PSE), subject to, among others, the approval of the PSE and relevant authorities. • Please refer to the announcement dated 24 April 2013 “Proposed Secondary Listing on the Philippine Stock Exchange” for more details. 14
Slide 15: Outlook
Outlook • Barring unforeseen circumstances, the Group expects to improve earnings in 2013 driven by the branded business – deepening penetration in existing markets through improved trade coverage and advertising – entry into new markets, and – shifting to higher-margin branded products (a key initi
Slide 16: Del Monte Philippines Products
T Del Monte Philippines Products
Slide 17: S&W Asia Products
T S&W Asia Products