Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — 1Q2018 Earnings Presentation
13 slides from Fraser & Neave's earnings presentation, 2018
Slide 1: F&N 1Q2018 Financial Highlights
F&N 1Q2018 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: 1Q2018 Performance Highlights
1Q2018 Performance Highlights Attributable profit rose 16% to $26 million Earnings for the first quarter ended 31 December 2017 (“1Q2018”) impacted by higher input costs and lower soft drinks sales • Revenue declined 2% to $487 million • EBIT increased 9% to $50 million • Dairies earnings, supported
Slide 4: Group Financial Highlights
1Q2018 Group Financial Highlights Revenue Earnings before interest and tax (“EBIT”) (million) (million) $487.1 $50.5 ▼ 1.6% ▲ 8.8% Profit after tax EBIT margin (million) (%) $41.1 10.4% ▲ 1.6% ▲ 100bps Gearing1 Earnings per share (basic)3 (%) (cents) 8.0% 1.8 ▲ from 5.3% in FY20172 ▲ 12.5% 1 Net deb
Slide 5: Revenue down 2%
1Q2018 Revenue down 2% Later Chinese New Year and increasing competitive environment in Malaysia impacted sales Revenue by Business Segment 1Q2018 ($) Revenue by Business Segment (%) -1.6% Dairies Publg 60% & $487m $495m Print $487m 16% +5.2% -16.0% Beverages $293m 24% $279m 1Q2018 Revenue by Geogra
Slide 6: Revenue | Beverages
1Q2018 Revenue | Beverages Revenue declined 16% on a later 2018 Chinese New Year festive season, competitive environment and intensifying price discounting in Malaysia Beverages Malaysia (-17%; -17% in constant 1Q2018 Revenue currency) – Revenue impacted by the 2-week shift in sell-in -17% -17% -16%
Slide 7: Revenue | Dairies
1Q2018 Revenue | Dairies Revenue increased 5% vs LY; overall increase in sales across all regions Dairies Malaysia (+5%; +4% in constant currency) 1Q2018 Revenue – Double-digit growth in Export helped to mitigate fall in domestic sales +5% $279m +4% +4% +0% +3% $293m – Domestic market impacted by su
Slide 8: Revenue | Publishing & Printing
FY2017 Revenue | Publishing & Printing • Revenue remained flat at $77m; supported by contributions from the newly- acquired distribution businesses in Singapore and Malaysia, despite lower print volume and timing differences in textbook sales -0.2% $77m $77m 1Q2017 1Q2018 8 First quarter ended 31 De
Slide 9: EBIT grew 9%
1Q2018 EBIT grew 9% Contributions from associated company, Vinamilk mitigated weaker performances in Beverages EBIT by Business Segment 1Q2018 1Q18 ($) 1Q17 EBIT by Business Segment (%) EBIT EBIT Margin Margin 14.2% 17.2% Dairies Publg 10.4% 100% & 6.3% 1.4% 9.4% 1Q17 Print 1Q18 $50m EBIT $51m 3% EB
Slide 10: EBIT | Beverages
1Q2018 EBIT | Beverages Earnings fell mainly on lower soft drinks sales in Malaysia, higher input costs, and new market expenses EBIT: Beverages Beverages Malaysia (-48%; -49% in constant -49% currency) – EBIT impacted by lower revenue and higher input NM $9m costs -50% -83% -82% -82% $2m $2m Bevera
Slide 11: EBIT | Dairies
1Q2018 EBIT | Dairies Earnings jumped 28% on maiden profit contribution from associated company, Vinamilk EBIT Vinamilk +28% – Group’s share of Vinamilk’s profit under equity $39m -29% $51m accounting method effective mid-April 2017 Others , $1m -36% $1m -2% NM Vinamilk Dairies Malaysia (-36%; -37%
Slide 12: EBIT | Publishing & Printing
1Q2018 EBIT | Publishing & Printing • Profit of $1.7m, up from a loss of $2.3m in the last corresponding period owing to improving operational efficiencies and productivity as a result of prior years’ cost rationalization efforts EBIT: Publishing & Printing $2m ($2m) 1Q17 1Q18 12 First quarter ended
Slide 13: Analyst and media contact: Jennifer Yu
Analyst and media contact: Jennifer Yu Head, Investor Relations T: (65) 6318 9231 E: jenniferyu@fngroup.com.sg Fraser and Neave, Limited