Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — FY2021 Earnings Presentation
41 slides from Del Monte Pacific's earnings presentation, Jun 23, 2021
Slide 1: Del Monte Pacific 4Q FY2021 Results
DEL MONTE PACIFIC 4Q FY2021 RESULTS 23 June 2021
Slide 2: Disclaimer
Disclaimer This presentation may contain statements regarding the business of Del MontePacificLimitedanditssubsidiaries(the“Group”)thatareofaforward- looking nature and are therefore based on management’s assumptions aboutfuturedevelopments.Suchforward-lookingstatementsaretypically identified by wor
Slide 3: Contents
Contents ▪ Summary ▪ 4Q FY2021 Results ▪ FY2021 Results ▪ Dividends ▪ Market Updates ▪ Sustainability ▪ Outlook
Slide 4: Notes to the 4Q FY2021 Results
Notes to the 4Q FY2021 Results ▪ Fourth quarter is from 1 February to 30 April 2021. ▪ DMPL owns 87% of Del Monte Philippines, Inc and 93.6% of Del Monte Foods, Inc. DMPL, therefore, recognises a 13% and 6.4% non-controlling interest (NCI) in these two subsidiaries, respectively. These comprise the
Slide 5: 4Q FY2021 Highlights
4Q FY2021 Highlights ▪ DMPL Group improved its gross margin to 26.8% from 17.8% on better sales mix, lower trade spending and lower costs ▪ EBITDA increased by 31% to US$73.1m ▪ Net profit of US$14.5m was a turnaround from the US$12.4m loss in the prior year ▪ EBITDA of Del Monte Foods rose 20% to U
Slide 6: Outlook
Outlook ▪ Strengthen our core business, expand the product portfolio, in response to market trends for health and wellness, and grow our branded business ▪ More product availability through better distribution and expanded sales channels including e-commerce ▪ DMPL is well-positioned in this environ
Slide 7: DMPL 4Q FY2021 Group Results Summary
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 4Q FY2021 Group Results Summary ▪ Sales of US$497.8m, -22% Sales % Change Americas -35 Philippines +12 (in peso terms +6) S&W +31 FieldFresh India (equity accounted) +18 (in rupee terms +20) There are no one-off items this quarter. All figures be
Slide 8: DMPL 4Q and FY2021 One-Off Expense/(Income)
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 4Q and FY2021 One-Off Expense/(Income) There are no one-off items this period For the three months ended For the year ended Amounts in US$ million 30 April 30 April FY2021 FY2020 FY2021 FY2020 % % (Unaudited) (Audited) (Unaudited) (Audited) DMFI
Slide 9: DMPL 4Q FY2021 Results – As Reported
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 4Q FY2021 Results – As Reported 4Q 4Q In US$m Chg (%) Comments FY2020 FY2021 Higher Philippines and international market sales were Turnover 638.4 497.8 -22.0 offset by lower USA sales from high base effect Better sales mix, lower trade spending
Slide 10: DMPL 4Q FY2021 Turnover Analysis
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 4Q FY2021 Turnover Analysis 4% Americas 30% 66% Asia Pacific Europe Americas -34.6% ▪ Extremely high base of peak pantry loading in March- April 2020 Asia Pacific +23.0% ▪ Higher sales in the Philippines, up 12% in US dollar terms ▪ Fresh sales j
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Slide 12: FY2021 Highlights
FY2021 Highlights ▪ DMPL Group improved its gross margin to 25.7% from 21.2% on better sales mix, lower trade spending and lower costs ▪ EBITDA more than doubled to US$309m ▪ Net profit of US$63m was a significant turnaround from the US$81m loss in the prior year ▪ EBITDA of Del Monte Foods surged t
Slide 13: DMPL FY2021 Group Results Summary
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL FY2021 Group Results Summary ▪ Sales of US$2.2bn, +2% Sales % Change Americas -3 Philippines +16 (in peso terms +10) S&W -1 FieldFresh India (equity accounted) -12 (in rupee terms -8) There are no one-off items this period. All figures below are
Slide 14: DMPL FY2021 Results – As Reported
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL FY2021 Results – As Reported In US$m FY2020 FY2021 Chg (%) Comments Higher Philippines and international market sales partly Turnover 2,128.3 2,162.7 +1.6 offset by USA sales Better sales mix, lower trade spending and active cost Gross profit 452
Slide 15: DMPL FY2021 Turnover Analysis
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL FY2021 Turnover Analysis 2% 29% Americas 69% Asia Pacific Europe Americas -2.7% ▪ Strategic planned exit from the non-branded private label retail segment ▪ But branded retail sales grew by 2.5% and e-commerce sales significantly increased contin
Slide 16: Dividends
Dividends • The Board approved a final dividend of 1.20 US cents (US$0.0120) per share to Common Shareholders representing 37% of FY2021 net profit before preference dividends or 54% of net profit after preference dividends For the fiscal year ended 30 April 2020 2021 Name of dividend Special Final
Slide 17: Market Updates for FY2021
Market Updates for FY2021
Slide 18: Del Monte Foods USA FY2021 Results
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Foods USA FY2021 Results ▪ DMFI’s sales for FY2021 were US$1.5bn or 70% of Group sales ✓ Branded retail sales grew by 2.5% and e-commerce sales significantly increased, continuing the strong growth momentum ✓ However, total sales were down 3
Slide 19: USA
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. USA Market Share Market Share Canned Vegetable (#1) Canned Fruit (#2) Market Share Market Share Fruit Cup Snacks (#2) Canned Tomato (#3) ▪ Del Monte, Contadina and College Inn outperformed most of their categories in 4Q, as consumers continued to turn
Slide 20: Del Monte Foods USA 4Q Results
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Foods USA 4Q Results ▪ DMFI’s 4Q sales declined by 34% to US$328.2m coming from an extremely high base in the same period last year with peak pantry loading in March-April 2020, and with reemerging supply constraints. However, 4Q sales remai
Slide 21: USA 4Q Marketing Highlights
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. USA 4Q Marketing Highlights National Marketing Shopper Marketing / E-Commerce • Vegetable Pinterest campaign • Participated in National Frozen & Refrigerated Foods Association’s Frozen Food Month promotion across 21 accounts • Fruit Facebook/Instagram
Slide 22: USA PR Highlights
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. USA PR Highlights Virtual Media Event in May earned 130.1M media impressions! Del Monte Media Event - 29 media attended across Secured 4 pieces of trade food, lifestyle, CPG trade, media coverage following ad trade, business verticals the Del Monte In
Slide 23: Red Lobster market test and LA school district
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Red Lobster’s 17 stores market test Del Monte Tropical Bubble Fruit (branded on the children’s menu) Del Monte Fruit Cups now on the menu of Los Angeles Unified School District (2nd largest school district in the USA) 23
Slide 24: Del Monte Philippines FY2021 Results
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Philippines FY2021 Results ▪ DMPL’s 2nd largest subsidiary, Del Monte PhiIippines, Inc, achieved its record sales of US$705.8m in FY2021, up 14% versus the prior year ✓ Sales in the Philippines rose 16% to US$392.9m, as strong retail sales m
Slide 25: Philippines
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines Market Share Market Share Market Share Packaged Pineapple (#1) Canned Mixed Fruit (#1) RTD Juices ex foil pouches (#1) Market Share Market Share Tomato Sauce (#1) Spaghetti Sauce (#1) ▪ Del Monte continues to enjoy strong market share lead
Slide 26: Philippines 4Q Results
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines 4Q Results ▪ In 4Q, Philippines sales grew by 12% in US$ terms and 7% in peso terms to US$78.3m. Both retail and foodservice sales were up. ▪ Higher packaged fruit and culinary product sales behind consumer campaigns promoting regular cook
Slide 27: Philippines – FY2021 Renovations
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines – FY2021 Renovations CULINARY FRUITS BEVERAGES Limited Edition Flavours QNE – Core Rightsized Packs Fiesta Fruit Cocktail Limited Edition Summer Flavours QNE – NEW Christmas Special Asian Flavours Fiesta Fruit Cocktail PhP 5 in Clear Can T
Slide 28: Philippines - Fruits
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines - Fruits Core communications centered on New Product Introduction to celebrate in-home meal preparations: summer: ▪ Add pineapples to chicken dish to boost Del Monte Fiesta Fruit Cocktail flavour, plus immunity (Mandarin Orange and Langka/
Slide 29: Philippines - Beverage
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines - Beverage Strengthening the core strengths of each brand, even while improving pandemic relevance during COVID-19: Del Monte Juice Drink: Delicious and healthy flavours to drive home consumption occasions. Del Monte Fit ‘n Right: 100% Pin
Slide 30: Philippines - Culinary
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines - Culinary Maximising the opportunities from increased home-cooking incidence: Del Monte Tomato Sauce: Del Monte Quick n Easy and Carbonara: Build everyday meal relevance of Launch of new QNE upsizes to complete Del Monte Tomato Sauce with
Slide 31: Philippines – Mr Milk
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines – Mr Milk WHAT IS MR MILK? • Fruit- and yoghurt-flavoured milk drink (plain, strawberry, green apple + mango ) loved by kids • Sold in packs of six at PhP50, providing moms better value-for-money Price / Unit Price / Piece Brand Casepack S
Slide 32: Philippines – Biscuits
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines – Biscuits 5.50 In July, we will further expand to the next largest biscuits segment: crème-filled cookies In Feb 2021, we entered the highly • Fun, new brand – attractive Biscuits category with a Del Monte Fruity uniquely healthy offer: M
Slide 33: Philippines – Fit 'n Right Relaunch
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines – Fit ‘n Right Relaunch In August 2021, we will have a major relaunch for our PET beverage Fit ‘n Right! • Targets the very relevant space of weight loss and weight management, which is important to 56% of RTD drinkers. • Modernises Fit ‘n
Slide 34: S&W Market Overview
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W Market Overview ▪ Largest fresh pineapple exporter to China, with 53% value share. In China alone, penetration of imported pineapples remains low giving substantial prospects for continued growth. ▪ One of the 3 biggest fresh pineapple exporters t
Slide 35: S&W 4Q Results
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W 4Q Results ▪ 4Q sales of S&W packaged products in Asia and the Middle East rose 23% on higher sales of canned pineapple and mixed fruit primarily in North Asia. ▪ 4Q sales of fresh pineapples, the majority of which are branded, jumped 53% due to a
Slide 36: S&W – Fruit Chain Expansion
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W – Fruit Chain Expansion (Tier 2 & 3 Cities) Where are we now? ✓ 4,000 Pagoda and Xianfeng stores in Tier 2-3 cities How will we penetrate further? To enter Pagoda and Xianfeng new stores direct or via Eachtake and Goodfarmer ✓ 1,600 new stores in
Slide 37: S&W -- Sweet Pineapples…beyond Fresh to Fresh Frozen
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W -- Sweet Pineapples…beyond Fresh to Fresh Frozen category NICE FRUIT establishing global footprint in the IQF penetrating industrial and food ingredients channels frozen snacks category Pineapple sticks as Frozen snacks in retail & QSR IQF Pineapp
Slide 38: S&W -- Sweet Pineapples…beyond Fresh to Fresh Frozen
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W -- Sweet Pineapples…beyond Fresh to Fresh Frozen category NICE FRUIT IQF FY2021 Trial 59 MT FY2021 Trial 43 MT FY2022 Advance Order 136 MT ▪ Pineapple stick is the second chosen item as a side option just after french fries PT Sky Innovation Recen
Slide 39: S&W – Asia & Middle East
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W – Asia & Middle East China: S&W sliced pineapple in KFC’s Bacon Chicken Burger. Promotion period from April to May China: S&W pineapple chunks used in McDonald’s Pineapple Singapore: and Coconut Milk S&W Tuna, Garbanzo Juice. Promotion Beans and C
Slide 40: Sustainability
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Sustainability ▪ Del Monte Philippines, Inc (DMPI) began the installation of 2.0MW of solar energy in its Bugo processing facility ▪ DMPI’s waste-to-energy facility contributed 17% of the facility’s electricity ▪ DMPI’s Bugo facility’s water use ratio
Slide 41: Outlook
Outlook ▪ Strengthen our core business, expand the product portfolio, in response to market trends for health and wellness, and grow our branded business ▪ More product availability through better distribution and expanded sales channels including e-commerce ▪ DMPL is well-positioned in this environ