Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Q3 FY2021 Earnings Presentation
35 slides from Del Monte Pacific's earnings presentation, Mar 10, 2021
Slide 1: Del Monte Pacific 3Q FY2021 Results
DEL MONTE PACIFIC 3Q FY2021 RESULTS 10 March 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 ▪ 3Q FY2021 Results ▪ 9M FY2021 Results ▪ Market Updates ▪ Sustainability ▪ Outlook
Slide 4: Notes to the 3Q FY2021 Results
Notes to the 3Q FY2021 Results ▪ Third quarter is from 1 November 2020 to 31 January 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 compris
Slide 5: 3Q FY2021 Highlights
3Q FY2021 Highlights ▪ DMPL grew sales by 13% on higher consumption of healthy, shelf-stable food at home – Philippines sales expanded by 20% and USA sales rose 12% ▪ Achieved improved gross margin of 26.9% from 20.4% on better sales mix, lower trade spending and lower costs ▪ Group delivered EBITDA
Slide 6: Outlook
Outlook ▪ To meet sustained demand for our trusted, healthy and shelf-stable products, we will continue to optimise our production while implementing strict safety measures against COVID-19 ▪ Strengthen our core business, expand the product portfolio, in response to market trends for health and well
Slide 7: DMPL 3Q FY2021 Group Results Summary
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 3Q FY2021 Group Results Summary ▪ Sales of US$628.4m, +13% Sales % Change Americas +13 Philippines +20 (in peso terms +14) S&W -7 FieldFresh India (equity accounted) -9 (in rupee terms -6) There are no one-off items this quarter. All figures belo
Slide 8: DMPL 3Q and 9M FY2021 One-Off Expense/(Income)
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 3Q and 9M FY2021 One-Off Expense/(Income) There are no one-off items this period For the three months ended For the nine months ended Amounts in US$ million 31 January 31 January FY2021 FY2020 FY2021 FY2020 % % (Unaudited) (Unaudited) (Unaudited)
Slide 9: DMPL 3Q FY2021 Results – As Reported
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 3Q FY2021 Results – As Reported 3Q 3Q In US$m Chg (%) Comments FY2020 FY2021 Higher USA, Philippines and international market sales Turnover 555.3 628.4 +13.1 driven by the pandemic Higher volume, better sales mix and active cost Gross profit 113
Slide 10: DMPL 3Q FY2021 Turnover Analysis
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 3Q FY2021 Turnover Analysis 2% 28% Americas 70% Asia Pacific Europe Americas +12.5% ▪ Sustained higher demand from the pandemic ▪ The principal categories experienced strong growth as consumers chose healthy and shelf-stable products in response
Slide 11: 9M FY2021
9M FY2021
Slide 12: DMPL 9M FY2021 Group Results Summary
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 9M FY2021 Group Results Summary ▪ Sales of US$1.7bn, +12% Sales % Change Americas +13 Philippines +17 (in peso terms +11) S&W -10 FieldFresh India (equity accounted) -20 (in rupee terms -16) There are no one-off items this period. All figures bel
Slide 13: DMPL 9M FY2021 Results – As Reported
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 9M FY2021 Results – As Reported 9M 9M In US$m Chg (%) Comments FY2020 FY2021 Higher USA, Philippines and S&W packaged sales driven Turnover 1,489.9 1,664.9 +11.7 by the pandemic Higher volume, better sales mix and active cost Gross profit 338.7 4
Slide 14: DMPL 9M FY2021 Turnover Analysis
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 9M FY2021 Turnover Analysis 1% 29% Americas 70% Asia Pacific Europe Americas +12.9% ▪ Sustained higher demand from the pandemic ▪ The principal categories experienced strong growth as consumers chose healthy and shelf-stable products in response
Slide 15: Market Updates for 3Q FY2021
Market Updates for 3Q FY2021
Slide 16: USA
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. USA Market Share Market Share Market Share Market Share Canned Vegetable (#1) Canned Fruit (#2) Fruit Cup Snacks (#2) Canned Tomato (#3) ▪ Strong category growth momentum continued into 3Q although moderating versus 1H ▪ Consumers continuing to turn t
Slide 17: Del Monte Foods USA 3Q Results
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Foods USA 3Q Results ▪ DMFI’s 3Q sales improved by 12% to US$440m mainly due to higher branded retail sales, up 26%, arising from the pandemic ▪ Higher sales of new products launched in the past 3 years accounted for 5% of DMFI’s total net s
Slide 18: USA
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. USA Del Monte Vegetables Holiday Del Monte Fruit Cup Holiday Green Bean Casserole Partnership: ✓ Partnered with French’s Onions & Campbell’s Soup ✓ Shopper marketing and in-store support across key retailers ✓ Strong digital and social support Return
Slide 19: USA
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. USA Del Monte Bubble Fruit Tik-Tok Video College Inn Holiday ✓ Continued new item support for Savory Infusions, including Shopper, in-store, coupon and digital ads ✓ College Inn “base” support, including Shopper, digital ads and a College Inn + Del Mo
Slide 20: USA PR Highlights
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. USA PR Highlights ▪ 1.6bn garnered impressions - In 3Q, Del Monte Brands and Corporate secured over 2,200 media placements garnering 1.6bn impressions ▪ Brand activations during key holiday periods drove high impressions – Our brands were part of the
Slide 21: Delivering sales of 260,000 cases and US$4m in sales
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Delivering sales of 260,000 cases and US$4m in sales employ 28,000 and have 70 distribution centers across the US. 21
Slide 22: Philippines
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines Market Share Market Share Market Share Packaged Pineapple (#1) Canned Mixed Fruit (#1) RTD Juices ex-SUP* (#1) Market Share Market Share Tomato Sauce (#1) Spaghetti Sauce (#1) ▪ Del Monte continues to enjoy strong market share leadership a
Slide 23: Philippines
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines ▪ In 3Q, Philippines sales soared 20% in US$ terms and 14% in peso terms. Retail channel sales rose 27%, offsetting declines in foodservice ▪ Higher packaged fruit and culinary product sales behind consumer campaigns promoting regular cook
Slide 24: Philippines - Fruits
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines - Fruits Core communications focusing on New product introductions to maximise increased usage during Christmas: the peak season: ▪ Level up Filipino Christmas recipes Del Monte Deluxe Gold: by simply adding pineapple Premium pineapples fo
Slide 25: 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: 100% Pineapple Juice: Del Monte Juice Drink: Del Monte Fit ‘n Right: Super Fruit campaign promises Health with 1 can/glass
Slide 26: Philippines - Culinary
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines - Culinary Maximising the opportunities from increased home-cooking incidence: Del Monte Tomato Sauce: Del Monte Ketchup: ‘Sauce-Sulit*, Sauce-Special’ campaign Promotes the full range as well as extending now pushes everyday cooking; usag
Slide 27: Philippines - Culinary
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines - Culinary Expanding our offers to be accessible to all consumers: Del Monte Tomato Paste: Today’s Tomato Sauce: Launch of PhP 5 sachet Tomato Ginisa Launch in Visayas and Mindanao, where (Tomato Sauté) competition invests in budget brands
Slide 28: Philippines - Culinary
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines - Culinary Highlighting product quality and superiority : Del Monte Quick ‘n Easy: Del Monte Spaghetti Sauce: New #AchieveRealSarap campaign, “Iba Ang Sarap” (the difference is emphasizes the Natural Ingredients delicious) superiority camp
Slide 29: S&W
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W ▪ COVID-19 started in China which is S&W’s largest market in Asia. The pandemic affected the Fresh market in China most significantly but is now recovering ▪ It also affected the foodservice channel especially in South Korea, Japan and UAE for fre
Slide 30: S&W
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W ▪ 3Q sales of S&W packaged products in Asia and the Middle East decreased by 9% as higher sales of canned pineapple and juices were offset by the decline in other categories partly due to supply constraints 2021 Chinese New Year tag used for ▪ Sal
Slide 31: S&W
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W Hong Kong: In Nov 2020, over 250 McDonald’s outlets included S&W sliced pineapples in their McSpicy burgers China: In Dec-Feb, 9 Popeyes In Jan-Feb 2021, S&W Fiesta outlets included S&W sliced Fruit Cocktail was included in pineapples in their Pin
Slide 32: S&W
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W Singapore: Newspaper ad E-Banners for S&W’s featured items with Redmart online Indonesia: vinegar gondola South Korea: Promotion of S&W fresh pineapple 32
Slide 33: FieldFresh India
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. FieldFresh India ▪ DMPL’s share of loss in 3Q was US$0.1m, lower than prior year quarter’s US$0.4m as business continued to recover from the impact of the pandemic on foodservice and QSR business. Foodservice accounted for about 50% of sales pre-pande
Slide 34: Sustainability
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Sustainability ▪ DMPL is gearing up for the Rainforest Alliance certification of its pineapple operation in the Philippines ▪ Initiatives underway to enhance soil conservation ▪ Solar power facility to be installed in the Philippines ▪ To date, DMPL h
Slide 35: Outlook
Outlook ▪ To meet sustained demand for our trusted, healthy and shelf-stable products, we will continue to optimise our production while implementing strict safety measures against COVID-19 ▪ Strengthen our core business, expand the product portfolio, in response to market trends for health and well