Slide 1: Emperador Inc. 1H2023 Results Presentation
EMPERADOR INC. 1H2023 Results Presentation
Slide 2: 1H23 Financials; Our Strategy
1 1 1H23 Financials 2 Our Strategy
Slide 3: 1H23 Financials – Revenue Highlights
1H23 Financials – Revenue Highlights Php 18.6 billion Php31.1 +4% YoY billion Brandy Revenue +11% YoY Php 12.5 billion Revenue +23% YoY Whisky Revenue
Slide 4: 1H23 Financials
1H23 Financials Continued topline growth; higher costs and expenses dampen net income 1H23 1H22 YoY 2Q23 2Q22 YoY Commentary Higher revenues in 1H for both brandy and whisky, but Revenue 31,109 28,054 10.9% 15,518 15,721 -1.3 consolidated revenues in 2Q down due to brandy drop Gross profit 10,646 8,
Slide 5: 1H23 Financials – Brandy Segment
1H23 Financials – Brandy Segment Brandy segment showed growth despite inflationary headwinds 1H23 1H22 YoY 2Q23 2Q22 YoY Commentary Revenue 18,624 17,897 4.1% 8,866 10,262 -13.6% Lower revenue due to inflationary headwinds… Gross 5,111 4,564 2,734 2,668 …but higher gross profit and GP margin due to
Slide 6: 1H23 Financials – Whisky Segment
1H23 Financials – Whisky Segment Whisky segment records another stellar performance 1H23 1H22 YoY 2Q23 2Q22 YoY Commentary Revenue up on continued demand for our single malts; Revenue 12,485 10,157 22.9% 6,652 5,459 21.8% strong growth seen in Asia and US Improved gross profit due to product mix and
Slide 7: 1H23 Financials – Cash Position
1H23 Financials – Cash Position Still Maintaining Strong Cash Position Net Debt to Cash Debt Net Debt Commentary Equity 1H23 9,846 24,769 14,923 16% Still maintaining good ratio after dividend payout and investments in the business 2022 12,738 23,801 11,063 12% Cash, beg EBITDA CAPEX and Acquisition
Slide 8: Dividends
Dividends Regular dividend payout Total net profit and dividends and dividend payout Dividend per share and dividend yield 14,000 100% 0.50 4% 63% 39% 39% 45% 0.45 12,000 38% 3% 31% 36% 26% 50% 2.7% 2.8% 12% 9,971 10,061 0.40 2.3% 2.0% 1.2% 2% 10,000 1.7% 0% 0.35 1.4% 1.4% 7,967 0.32 1% 7,693 8,000
Slide 9: Our Strategy
1 1 1H23 Financials 2 Our Strategy
Slide 10: Revenue Objectives
Revenue Objectives Revenues growing in line with target to meet 2025 objectives What we What we 2025 achieved from achieved in Objectives 2020 to 2022 1H23 • Whisky consistently hitting 2x Whisky revenue Whisky 1H23 target revenue up Double branded grew at18% single malt sales CAGR 23% YoY • Brandy
Slide 11: Revenue Objectives
Revenue Objectives Revenues growing in line with target to meet 2025 objectives Prior to 2014 2020 2022 2025 30% 35% 50% 50% 65% 70% 100% • 100% Philippine • 70% Brandy • 65% Brandy • 50% Brandy brandy business • 30% Whisky • 35% Whisky • 50% Whisky
Slide 12: Whisky segment now makes up a significant portion of the business
1H23 Revenues Whisky segment now makes up a significant Whisky, 40% portion of the business Brandy, 60% • Growth of whisky business is in line with our strategy 1H23 Net Income • Expect whisky segment to continue growth Attributable to Parent following global trends for whisky and premiumization Bra
Slide 13: Dalmore Distillery Expansion
Dalmore Distillery Expansion • Will expand the Dalmore distillery to cater to future demand • Expansion will double the distillery’s production capacity • Construction started towards the end of 2022 and is expected to be completed in mid-2024 • On track to completing expansion on time
Slide 14: Expansion of Maturation Complex in Invergordon Distillery
Expansion of Maturation Complex in Invergordon Distillery • Doubling footprint to 92 hectares • Will build additional warehouses for whisky aging • Project will span many years and will eventually house an additional 1.5 million casks
Slide 15: Global Single Malt Ranking
Global Single Malt Ranking Our single malts continue to gain market share and advance in rankings globally Brand 2021 Volume Ranking 2022 Volume Ranking Change Dalmore 12 11 +1 Jura 13 12 +1 Tamnavulin 15 15 Maintain Brand 2021 Value Ranking 2022 Value Ranking Change Dalmore 7 7 Maintain Jura 16 13
Slide 16: Asia Single Malt Ranking
Asia Single Malt Ranking Large gains recorded in China in 2022 Brand 2021 Volume Ranking 2022 Volume Ranking Change Dalmore 7 6 +1 Jura 23 10 +13 Tamnavulin 18 16 +2 Brand 2021 Value Ranking 2022 Value Ranking Change Dalmore 5 2 +3 Jura 16 13 +3 Tamnavulin 20 20 Maintained Source: IWSR Note: Monkey
Slide 17: 150 years of Fundador in 2024
150 years of Fundador in 2024 • 150 year-anniversary of the Fundador brand • Preparations are underway for this historic milestone • Will make a big push with the Fundador sherry cask
Slide 18: 2023 Outlook
2023 Outlook • Expected to hit target for the year in line with 2025 strategic objectives • Whisky segment poised to end the year with revenues growing at least 15% • Brandy segment will catch up in the 2nd half to end the year to record high single- digit increase in revenue • Expected to see healt
Slide 19: Q&A
THE DALMORE JURA ‘SUNGLEMALT Seorea WaISEY ApMNAVUL iy, EMPERADOR Q&A