Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — H1 2016 Earnings Presentation
16 slides from Fraser & Neave's earnings presentation, 2016
Slide 1: F&N Half-Year Financial Highlights
F&N HALF-YEAR 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: 1H2016 Performance Highlights
1H2016 Performance Highlights 44%1 Profit After Tax growth Strong operating performance in the half-year ended 31 March 2016 (“1H2016”) • Impacted by adverse foreign exchange effect • Food & Beverage EBIT up 38%; margin improved to 11%, from 7% • Dairies growth momentum continued unabated; EBIT up 6
Slide 4: Group Financial Highlights
1H2016 Group Financial Highlights Revenue Earnings before interest and tax (“EBIT”) (millions) (millions) $962.8 $82.1 ▼ 8.2% ▲ 26.6% Profit after tax1 Gearing (millions) (millions) $73.7 $820.7 (net cash) ▲ 44.5% ▼5.1%3 Dividend per share (interim) Earnings per share (basic)1,2 (cents) (cents) 1.5
Slide 5: Revenue Down 8.2%
1H2016 Revenue Down 8.2% due to negative translation effects and competitive pricing, despite volume growth Revenue by Business Segment 1H2016 ($) Revenue by Business Segment (%) -8.2% Dairies $1,049m 55% Publg & Print $963m $963m 16% -7.3% -8.8% Beverages $574m 29% $532m 1H2016 Revenue by Geography
Slide 6: Revenue | Beverages
1H2016 Revenue | Beverages Revenue declined 9% on weaker Ringgit and competitive pricing in Malaysia Beverages Malaysia (-13%; -1% in constant Volume Growth (Key Brands) (%) currency) +15% - Volume increased 10%, despite lost sales from +11% +10% Red Bull, due to effective execution of consumer +8%
Slide 7: Revenue | Dairies
1H2016 Revenue | Dairies Revenue fell 7%, impacted by negative translation effects and higher tactical discounts Dairies Malaysia (-14%; -3% in constant Volume Growth (%) currency) - Impacted by weaker Ringgit and higher trade discounts given (in view of lower input costs) +3% +3% - Consolidated its
Slide 8: Revenue | Publishing & Printing
1H2016 Revenue | Publishing & Printing • Retail and Distribution divisions recorded revenue gains • Strong sales performance in airport retail and high street stores • Higher partwork sales in Hong Kong and Singapore • Publishing and Printing divisions revenue fell • Slow-down in demand in Education
Slide 9: EBIT Grew 26.6%
1H2016 EBIT Grew 26.6% Profit growth supported by Dairies, despite negative translation impact EBIT by Business Segment 1H2016 1H16 ($) 1H15 EBIT EBIT by Business Segment (%) EBIT Margin 12.3% Margin Publg 7.4% 7.2% 6.9% 8.5% Dairies 6.2% & 79% 1H15 1H16 Print $82m EBIT EBIT -4% $65m Margin Margin $
Slide 10: EBIT | Beverages
1H2016 EBIT | Beverages EBIT margin maintained despite new market spending in Indonesia, Myanmar, Thailand and Vietnam, and weaker Ringgit Beverages Malaysia (-1%; +13% in constant EBIT currency) +13% − EBIT jumped 13%, in constant currency, on +11% favourable product mix and lower input cost -11% -
Slide 11: EBIT | Dairies
1H2016 EBIT | Dairies Earnings surged 66%; margin expansion on the back of higher contribution from Malaysia and Thailand EBIT +66% Dairies Malaysia (+49%; +69% in constant Others $3m currency) -nm- - Driven by lower input costs $0m Thailand $36m +70% - Weaker Ringgit affected extent of earnings +49
Slide 12: EBIT | Publishing & Printing
1H2016 EBIT | Publishing & Printing • Losses before interest and taxation increased to $3.9m, due to lower revenue, investments made in an e-commerce project and a cost rationalisation exercise in the Printing division EBIT 1H2015 1H2016 ($2m) ($4m) 12 Half-year ended 31 March 2016 11 May, 2017
Slide 13: Maintained a strong financial position
Maintained a strong financial position Focused on prudent balance sheet management • Declared interim dividend of 1.5 cents per Key Financial Ratios share, down from 2.0 cents in 1H2015 1H2016 FY2015 • Reflects the Group’s underlying operational Total Equity1 $2,822m $2,556m results following sale o
Slide 14: Key Developments: Investing for Growth
KEY DEVELOPMENTS: Investing for Growth
Slide 15: Investing for our future
Investing for our future RM NEW ASEPTIC COLD-FILLING PET BOTTLE LINE 180 Offers new formulations and packaging formats Reduces PET resin packaging material by 40% Produces 6.5 million cases per year MILLION STATE-OF-THE-ART Artist’s impression of the facility FACILITY, Shah Alam Offers a four-fold i
Slide 16: 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 11 May, 2017 16