Slide 1: Fourth Quarter and Full Year 2012 Results
Del Monte Pacific Limited Fourth Quarter and Full Year 2012 Results 27 February 2013 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these f
Slide 3: Contents
Contents Executive Summary 4Q 2012 Results FY 2012 Results Market Updates Outlook Dividend Bonus Share Issue 3
Slide 4: Executive Summary
Executive Summary DEL MONTE PACIFIC FULL YEAR NET PROFIT GREW BY 17% DRIVEN BY BRANDED BUSINESS • Full year sales up 8% to a record US$460m, while net profit up 17% to US$32.1m • Strong consumer demand for Del Monte brand in the Philippines and S&W in Asia • Declared dividend of 1.51 US cents per sh
Slide 5: Fourth Quarter 2012
Fourth Quarter 2012 4Q 4Q In US$m Chg (%) Comments 2011 2012 Due to the branded business in Asia , comprising of Del Monte in Turnover 154.1 159.5 +3.5 the Philippines and the Indian subcontinent as well as S&W in Asia and the Middle East Gross profit 37.9 38.7 +2.2 Better sales mix and prices Lower
Slide 6: 4Q Turnover Analysis
4Q Turnover Analysis 76% 24% Branded Non Branded Branded +12.0% • Growth across major product categories in the Philippines – culinary, beverage and processed fruit segments; as well as strong sales of S&W branded business, both processed and fresh Non Branded -16.7% • Export sales declined in the g
Slide 7: Philippine Market 4Q 2012 Updates
T Philippine Market 4Q 2012 Updates • Sales in the Philippines continued their strong momentum, up 9% YoY • Growth across major product categories – culinary, beverage and processed fruit segments • Driven by advertising support and stronger in-store execution
Slide 8: S&W 4Q 2012 Updates
T S&W 4Q 2012 Updates • S&W branded sales expanded by 70% to US$11.3 million • Improved sales of S&W processed products were driven by distribution expansion in China, Korea and Indonesia as well as contribution from the Middle East, a new market • Higher sales of S&W fresh fruit due to increased sa
Slide 9: India 4Q 2012 Updates
T India 4Q 2012 Updates • Higher Del Monte branded processed sales • Better sales mix, reduced overhead and tighter management of expenses • As a result, the group recognised an equity loss of US$1.0m, lower than prior year quarter’s US$2.2m
Slide 10: 4Q Cash Flow Variance Analysis
4Q Cash Flow Variance Analysis Additional Investment Working in 3Q12 Operations Cap Tax Capex FieldFresh Others 4Q12 -US$150.2m -US$116.0m Net Debt Net Debt +23.3m -2.6m -10.7m -0.9m -3.3m +28.4m
Slide 11: FY 2012 Results
FY 2012 Results
Slide 12: Full Year 2012
Full Year 2012 FY FY In US$m Chg (%) Comments 2011 2012 Due to the branded business in Asia, comprising of Del Monte in Turnover 425.2 459.7 +8.1 the Philippines and the Indian subcontinent as well as S&W in Asia and the Middle East Higher volume and better sales Gross profit 101.4 112.8 +11.2 mix H
Slide 13: FY Turnover Analysis
FY Turnover Analysis 70% 30% Branded Non Branded Branded +16.8% • Higher sales in all major categories in the Philippines as well as improved S&W sales; continued robust demand for canned beverage in the Philippines Non Branded -7.8% • Weak demand and reduced pineapple juice concentrate prices 13
Slide 14: Branded vs Non Branded Sales
Branded vs Non Branded Sales Significant expansion of the Branded business in line with the company’s vision to be one of the fastest growing global branded food and beverage companies
Slide 15: FY Margins
FY Margins Gross margin Better sales mix % Margin Operating margin Higher gross profit Net margin Lower equity loss in Indian affiliate FY11 FY12 15
Slide 16: Outlook
Outlook • Barring unforeseen circumstances, the Group expects to improve earnings in 2013 driven by the branded business with higher revenue from better volume and sales mix in the Philippines and S&W markets. • Actively addressing the weak export markets by cutting back on tonnage, shifting volume
Slide 17: Dividend
Dividend Dividend Book Closure Payment Date Dividend/ Payout Ratio Date Share Final 8 March 2013 27 March 2013 US$0.0151 75% of 2H 2012 net profit US cents 1H: 0.46 3 2.56 2.23 1.91 US cents 2 1.10 2H: 1.51 0.79 1 1H: 0.72 0 2008 2009 2010 2011 2012 17
Slide 18: Bonus Share Issue
Bonus Share Issue • The Board also declared a bonus issue on the basis of two (2) bonus shares for every ten (10) existing ordinary shares in the capital of the Company subject to regulatory approvals • Rationale is to increase liquidity of the shares in the market and to reward shareholders for the