Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Q1 FY2025 Earnings Presentation
30 slides from Del Monte Pacific's earnings presentation, Sep 10, 2024
Slide 1: Del Monte Pacific Ltd. 1Q FY2025 Results
Del Monte Pacific Ltd. 1Q FY2025 Results 10 September 2024 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 typical
Slide 3: Contents
CONTENTS • Summary • 1Q FY2025 Results (1 May to 31 July 2024) • Market Updates • Sustainability • Outlook 3
Slide 4: Highlights
HIGHLIGHTS • Del Monte Pacific Limited (DMPL) Group sales grew by 4% to US$537m • Subsidiary Del Monte Philippines, Inc. (DMPI) achieved 13% higher sales in peso terms, driven by international sales surging 20% on robust exports of fresh and packaged pineapple, and the Philippine market’s resurgence
Slide 5: Outlook
OUTLOOK In FY2025, the Group’s main priorities will be as follows: 1) Plans are underway for the selective sale of assets in the U.S. and injection of equity in the Group through strategic partnerships. The Group intends to utilize the proceeds from these transactions to lower leverage. 2) The Group
Slide 6: 1Q FY2025 Results
1Q FY2025 RESULTS 1Q 1Q In US$m Chg (%) Comments FY2025 FY2024 Strong packaged and fresh pineapple exports and Turnover 536.9 516.7 +3.9 higher Philippine sales Due to DMFI’s high cost of inventory and Gross profit 87.6 108.3 -19.1 inflationary impact from prior year’s production Gross margin (%) 16
Slide 7: 1Q FY2025 Results by region
1Q FY2025 RESULTS 2.9% Americas 14.4% Asia Pacific ex-Philippines 15.9% 66.8% Philippines Europe Sales growth Comments Americas -0.1% ▪ Strong Joyba bubble tea sales from expanded nationwide distribution and growth in broth and stock portfolio ▪ Offset by a slowdown in healthy snacking category sale
Slide 8: Market Updates
MARKET UPDATES 8
Slide 9: Del Monte Philippines 1Q FY2025
DEL MONTE PHILIPPINES 1Q FY2025 ▪ Sales of US$175.7m, +13% in peso terms with Philippine sales of US$77.2m, +6% ✓ Resurgence under the new sales leadership, increased modern trade shopper demand, improving general trade/distributor operations, and reinvestments in marketing which shored up brand off
Slide 10: Philippines Market Shares
PHILIPPINES MARKET SHARES Leadership market shares holding or even increasing. Category consumption growing. 95.1% -1.2pts 80.3% +3.8pts 41.0% +1.1pts Packaged Pineapple (#1) Canned Mixed Fruit (#1) RTD Juices ex foil pouches (#1) Category Growth: Category Growth: Category Growth: Past 3 mos.: +13.3
Slide 11: Philippines - Fruits
PHILIPPINES - FRUITS Mixed Fruits - Canned Pineapple - New “Spill the Fruity” campaign to educate Re-airing of 15s TVC material consumers on trending dessert applications (Kids love and dish versatility) beyond the traditional and seasonal fruit salad Value Packs to increase frequency of usage of De
Slide 12: Philippines - Beverage
PHILIPPINES - BEVERAGE Launched a new Del Monte 100% Pineapple Juice Heart Smart Campaign! Launched Fit ‘n Right Green Apple! ✓ Full IMC Campaign – TVC, Digital Media (FB, IG, YT), Medical KOLs, ▪ With L-Carnitine and Hospital Activations GCE for fat burn ✓ Exceeding Media KPIs ▪ Refreshing, crisp g
Slide 13: Philippines - Culinary
PHILIPPINES - CULINARY Tomato Sauce - Spaghetti Sauce - New Campaigns to revive love for cooking Best Birthday Ever Always On Campaign & tomato saucy dishes New Value Bundles to push off-peak consumption Del Monte Kitchenomics Dish Campaign New Thematic Digital Campaign ‘Sauce-Sarap ng Hapag-mamahal
Slide 14: International - Fresh Market Share
INTERNATIONAL - FRESH MARKET SHARE Market shares continue to improve 0.80 Fresh North Asia Market Share 0.70 China, 68% 0.60 55% Korea, 49% 0.50 38% North Asia, 48% 0.40 0.30 32% Japan, 20% 0.20 19% 0.10 0.00 FY'21 2020 FY'22 2021 FY'23 2022 FY'24 2023 Up to Latest FY'25 June 2024 Source: CY2021 – 2
Slide 15: S&W Fresh - China
S&W FRESH - CHINA S&W Fresh, through its partner/distributor River King, launched the Sweet 16 Pineapple Fresh Cut in Costco last May 2024. The product is now available in all 6 Costco stores in East China. Display of Sweet 16 Pineapple Fresh Cut in Costco stores 15
Slide 16: S&W Fresh - China
S&W FRESH - CHINA S&W Deluxe Fresh Pineapple on Douyin! Eachtake engaged with Chinese influencer 森叔 (English translation: Uncle Forest), to promote S&W Deluxe Fresh Pineapple on Douyin, the Chinese version of Tiktok. S&W and Eachtake collaborated with 森叔 since June 2024 and has about 1 million follo
Slide 17: S&W Fresh - Japan
S&W FRESH - JAPAN Farmind, S&W’s partner/distributor in Japan for fresh cut Sweet 16 pineapples, launched their promotion campaign for Spring in over 130 stores in Japan. Promotions included a chance to win e- money or vouchers, which gained about 100,000 engagement on the app, in-store product demo
Slide 18: S&W Packaged - Hong Kong
S&W PACKAGED – HONG KONG ▪ McDonald’s launched Ebi Burger with Pineapple as part of their summer season offering which started in June 2024. The summer promotion also featured S&W Fiesta Fruit Cocktail and S&W Pineapple Slices in their beverages – Peach Yogurt Soda and Pineapple Soda, respectively.
Slide 19: Del Monte Foods USA 1Q FY2025
DEL MONTE FOODS USA 1Q FY2025 ▪ Sales of US$357m or 66% of Group sales; sales were stable as strong Joyba bubble tea sales from expanded nationwide distribution and growth in broth and stock portfolio were offset by a slowdown in healthy snacking category sales ▪ In May 2024, DMFI expanded the natio
Slide 20: USA Market Shares
USA MARKET SHARES 24.6% 0.0pt 17.9% -3.3pts 24.3% -2.6pts Canned Vegetable (#1) Canned Fruit (#1) Fruit Cup Snacks (#2) Category Growth: -1.1% Category Growth: -3.9% Category Growth: -4.5% 6.8% -0.7pt 5.9% -0.4pt Broth & Stock (#2) Canned Tomato (#3) Category Growth: +7.7% Category Growth: -1.6% Sou
Slide 21: USA Vegetable Shares
USA VEGETABLE SHARES Dominant Leadership in Vegetable Continues Just Launched! Innovative new flavors Branded Vegetables Quarterly EQ Share Trends 2021 – 2024 will accelerate growth 30.0 ~25% share 25.0 24.6 25.5 24.8 24.4 24.6 25.0 23.4 23.6 23.6 23.7 24.2 23.7 21.9 19.8 20.5 20.0 16.7 14.6 15.0 ~1
Slide 22: Joyba
JOYBA JOYBA is in over 35,000 stores nationally and now ranks as the 8th largest brand in Single Serve RTD Tea category, achieving the highest dollar share growth ◼ Joyba has surpassed 35,000 stores nationally, increasing 2.1x overall YoY ◼ Total Joyba distribution has hit 70% ACV, achieving FY2025
Slide 23: USA 1Q Marketing Highlights
USA 1Q MARKETING HIGHLIGHTS Back to School Advertising Bubble Fruit Gel Launch Joyba Advertising 23
Slide 24: USA 1Q Beyond Retail: Foodservice and LATAM Successes
USA 1Q BEYOND RETAIL: DRIVING FOODSERVICE AND LATAM SUCCESSES Foodservice LATAM Non-Commercial 1Q Wins 1Q Wins New GTM Model in Mexico • 3-year Contract Great new Distribution Partner 4oz, Fruit & Veg Vegetable Renewals – Sodexo & With Sales and Merchandising Portfolio Preferred Aramark Support & JO
Slide 25: USA 2Q and Beyond
USA 2Q AND BEYOND Strong focus on restoring gross margins throughout FY2025. Key activities include: • In 2Q and beyond, higher pricing and reduced trade spend for a combined positive impact of ~US$40m in gross profit which will drive higher margins through targeted list price increases, trade effic
Slide 26: USA: Growth Projected Beyond Retail
USA: GROWTH PROJECTED BEYOND RETAIL FOOD INGREDIENTS INTERNATIONAL ETHNIC GROCERY Industrial Customers Retailers, Foodservice & B2B Hispanic & Asian Specialty Retailers Effective outlets for Tomato and New business potential on many Del Selling all Del Monte brands across Pineapple commodity product
Slide 27: USA: Improve LATAM Potential
USA: IMPROVE LATAM POTENTIAL CENTRAL AMERICAN MEXICO PUERTO RICO & CARIBBEAN SOUTH AMERICA Key Market Insights Key Market Insights Key Market Insights Key Market Insights Servicing all major Retailers, Plaza Provisions is an excellent Del Monte is licensed to Sell all DMFI brands, Club Stores and Fo
Slide 28: Sustainability
SUSTAINABILITY Renewable Energy Water Consumption Foundation Projects Sustainability Report • DMPI started • DMPI’s Water Use • About 22,000 Del Monte Pacific Ltd. commissioning a Ratio (WUR) in its individuals published its FY2024 4.0MW solar power manufacturing benefitted from the Sustainability R
Slide 29: Sustainability
SUSTAINABILITY Science Based Targets (SBTi) Community Giving The Science Based Targets Initiative’s Target Validation Team has approved DMFI’s SBTs Overall Net-Zero Target: Del Monte Foods commits to reach net-zero greenhouse gas emissions across the value chain by FY2050. Near-Term Targets: Del Mon
Slide 30: Outlook
OUTLOOK In FY2025, the Group’s main priorities will be as follows: 1) Plans are underway for the selective sale of assets in the U.S. and injection of equity in the Group through strategic partnerships. The Group intends to utilize the proceeds from these transactions to lower leverage. 2) The Group