Fraser & Neave Holdings Bhd. · MYX:F&N
Fraser & Neave Holdings Bhd — H1 2022 Earnings Presentation
38 slides from Fraser & Neave Holdings Bhd's earnings presentation, Apr 28, 2022
Slide 1: 1H FY2022 Financial Results Briefing
FRASER & NEAVE HOLDINGS BHD 1H FY2022 FINANCIAL RESULTS BRIEFING
Slide 2: 1H FY2022 F&NHB Group Financial Performance
1H FY2022 F&NHB GROUP FINANCIAL PERFORMANCE 2
Slide 3: F&NHB Records Higher 1H Revenue On Continued Momentum
” F&NHB Records Higher 1H Revenue On Continued Momentum As a Group, our results demonstrate our resilience in the face of tremendous pressures on multiple fronts. Positive momentum from the recovery of economic activities in Malaysia moderated the flood impact in Malaysia ” and weaker demand in Thai
Slide 4: F&B Malaysia
F&B Malaysia − Successful CNY activations and recovery of economic Revenue activities/relaxed CNY SOPs (RM'mil) +5.2% − Greater out-of-home consumption and traffic at HORECA channel ----------------------- − Q1 momentum disrupted by flood quick turnaround +9.0% 2Q FY2022 v 2Q 2021 +1.3% • Revenue +9
Slide 5: F&B Thailand
F&B Thailand − Market share grew ahead of overall market despite weaker demand due to Covid Omicron variant Revenue +4.6% (THB (RM'mil) terms) − Sustained growth through effective promotions and loyalty ----------------------- -1.8% program +10.3% -1.0% (THB terms) (THB terms) 2Q FY2022 v 2Q 2021 +3
Slide 6: Reality: Commodity Prices Are Still Trending High
Reality : Commodity Prices Are Still Trending High The rise in global commodities prices amounted to an additional RM200 million COGS for 1H. Through rigorous cost management measures, including price and trade discount adjustments, the Group has significantly reduced the impact to its bottom line.
Slide 7: Despite lower Export revenue and higher COGS, margins sustained through price increase
Despite lower Export revenue and higher COGS, margins sustained through price increase • Price increase impacted demand in price-sensitive regions • Challenges faced: Shipping disruption, limited vessels, higher freight costs, strict lockdown in Greater China CONTRIBUTION OF EXPORT REVENUE TO SEGMEN
Slide 8: Interim dividend maintained at 27 sen/share
Interim dividend Maintained at 27 sen/share (2021: 27 sen/share) • We have taken into consideration 31 Mar 2022 30 Sep 2021 Change various factors including: • The level of our available cash Total equity 1 2,891.5 2,819.0 2.6% and cash equivalents (RM'mil) • Group’s capital position • Working capit
Slide 9: First Half Highlights
FIRST HALF HIGHLIGHTS 9
Slide 10: Total Brand Packaging Uplift, Refreshed Look To Reengage With Our Consumers
Total Brand Packaging Uplift, Refreshed Look To Reengage With Our Consumers 10
Slide 11: What's New?
F&N SEASONS TEAPOT Soya Rose Low Fat What’s New? Sweetened Creamer with 25% Less Sucrose F&N F&N Sweetened F&N Magnolia Full Cream Creamer with UHT Milk Evaporated 25% Reduced Milk Sugar
Slide 12: New offerings from Sri Nona
New offerings from Sri Nona Ketupat ala Ketupat ala Sup Nona Nasi Ayam Nasi Lemak Uncang Kicap
Slide 13: Brand campaigns to ramp up sales during Ramadan and Raya
Brand campaigns to ramp up sales during Ramadan and Raya
Slide 14: 100PLUS #RamadanSemuaDone Programme
100PLUS #RAMADANSEMUADONE PROGRAMME Distribution of 100PLUS Active & Bubur Lambuk around Klang Valley during Ramadan month to keep fasting Muslims hydrated, focused & energised
Slide 15: Our Awards & Recognition
Our Awards & Recognition 100PLUS Fraser & Neave Holdings Bhd F&N Dairies Thailand Putra Brand Awards 2021 NACRA 2021 The Prime Minister’s 6th Consecutive Gold Best Sustainability Industry Award 2021 (Beverage: Non-alcoholic) Reporting - Platinum Quality Management
Slide 16: Inclusion in the S&P Global Sustainability Yearbook 2022
INCLUSION IN THE S&P GLOBAL SUSTAINABILITY YEARBOOK 2022 ü F&NHB emerged as one of the top quintile companies in CSA, at the 86th percentile in the Beverages (BVG) Industry. ü We scored 69 (out of 100) and ranked among the top ten companies out of 46 companies assessed in the beverages industry. ü N
Slide 17: Kickstarting the F&N Annual School Recycling Programme
KICKSTARTING THE F&N ANNUAL SCHOOL RECYCLING PROGRAMME F&NHB joins hands with various local councils in Malaysia to inculcate 5Rs among students via annual inter-school competition. Official launch of F&N – MBSA School Recycling Programme 2022
Slide 18: What's Next? A stream of exciting new products coming
WHAT’S NEXT? A stream of exciting new products coming……
Slide 19: Sneak Peek
FRASER & NEAVE HOLDINGS BHD “ S ed a p Rugi b teh tarik n eli 4 b i.. otol je ” r i t i n g fo a le e e n w y who ve b ik m ea “Ha Teh Tar te the t ich l s h loca . Can ta nger, w et, life is stro oo swe l a v our ! Not t ced” f go od b a lan i s ei s tast Sneak Peek Malaysians’ Favourite Teh Tarik
Slide 20: Brand Restage Coming soon in July 2022
BRAND RESTAGE Coming soon in July 2022…
Slide 21: Teapot Extra Evap in UHT Format
TEAPOT SCM Tube TEAPOT Sweet Potato F&N Magnolia EXTRA Evap UHT Milk in UHT Format TEAPOT Evap (Blueberry for Dessert & & Brown Sugar) Curry 21
Slide 22: Outlook
Outlook 22
Slide 23: Outlook
Outlook • Environment for the industry to remain challenging for 2H of FY • high input prices, rising freight costs, and geopolitical uncertainties • rising inflationary pressures may dampen discretionary spending. • Reopened borders and relaxation of quarantine requirements in Malaysia and Thailand
Slide 24: Proposed acquisition of Ladang Permai Damai
Proposed acquisition of Ladang Permai Damai (“Proposed Acquisition) • Enable us to embark on an upstream fresh milk business for downstream production and distribution of fresh milk. • Will present incremental opportunities for our future growth prospects. • lower the value chain cost per litre and
Slide 25: Investing for the Future
INVESTING FOR THE FUTURE 25
Slide 26: New Regional Distribution Centre, Rojana, Thailand
New Regional Distribution Centre (“RDC”) Rojana, Thailand [Completed end of FY2021 ] • ASRS-equipped RDC in Rojana, Thailand (RM52 million) with a capacity of 30,000 pallets – allows greater distribution and cost efficiencies. • Fully integrated distribution centre with enterprise resource planning
Slide 27: Production Plant for Drinking Water & Warehouse, Kota Kinabalu
Production Plant for Drinking Water & Warehouse Kota Kinabalu Industrial Park, Malaysia [Building and installation completed, commercial run in Q3, FY2022] KKIP Manufacturing Plant • The investment signals our entry into drinking water business in Sabah • Cost savings by in-sourcing of warehousing n
Slide 28: Integrated Warehouse, Shah Alam Plant, Malaysia
Integrated Warehouse Shah Alam Plant, Malaysia [Target Completion: Testing on-going, Target for commercial run by end of FY 2022 – delayed due to flood] Racking Stacker Crane RGV • Integrated warehouse building with Automatic Storage & Retrieval System (ASRS) with capacity to store over 50,000 palle
Slide 29: Solar Photovoltaic (PV) System, 3 plants in Malaysia
Solar Photovoltaic (PV) System 3 plants in Malaysia (Shah Alam, Pulau Indah, Bentong) [Target Completion: End of April FY 2022] Shah Alam Manufacturing Plant Pulau Indah Manufacturing Plant Bentong Manufacturing Plant • Part of RM30 mil commitment over two years into renewable energy programmes and
Slide 30: Plant-Based Beverages Capability in Thailand
Plant-Based Beverages Capability in Thailand Wangmuang, Thailand [Target Completion: Q3, FY2022] “A strategic shift for F&NHB RM128 million investment in Wangmuang to reduce reliance on condensed milk and enable (inclusive of land) in a us to grow our brand liquid milk & plant-based beverages factor
Slide 31: Plant-Based Beverages Capability in Thailand
Plant-Based Beverages Capability in Thailand Wangmuang, Thailand [Target Completion: Q3, FY2022] Solar rooftop 1MWP has been in use since Feb 2022, while first commercial production from the plant is expected to be in Q3 FY2022. RM20 million investment in plant-based beverages capability in Pulau In
Slide 32: Special Report on Flood
Special Report on Flood 32
Slide 33: Flash Floods in Q1
Flash Floods in Q1 • Shah Alam factory was affected by the flood from 18 – 19 December 2021. • Immediately isolated the factory main power supply and shut down substation power supply when water level started to rise. • Crisis management teams was activated and the management’s priority was to ensur
Slide 34: Recovery Post Flood and Current Status
Recovery Post Flood and Current Status • The biggest impact came from damaged finished goods, packaging and raw materials. • Estimated impact to-date is approximately RM40 million and assessment is still on-going due to repairs underway and lead time for spare parts/raw materials. • We have in place
Slide 35: Recovery Efforts and Quick Turnaround
Recovery Efforts and Quick Turnaround 35
Slide 36: Gratitude to Our F&N Heroes
Gratitude to Our F&N Heroes Thanks to our F&N HEROES, our lines resumed operations in stages since mid January. 36
Slide 37: Flood Relief in Peninsular Malaysia
FLOOD RELIEF in Peninsular Malaysia Distributed > 25,000 products including 100PLUS, F&N Ice Mountain Drinking Water and F&N Condensed Milk to affected communities directly or via NGOs. 37
Slide 38: Thank You
Fraser & Neave Holdings — H1 2022 Earnings Presentation on 6ix