Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Q1 FY2022 Earnings Presentation
32 slides from Del Monte Pacific's earnings presentation, Sep 9, 2021
Slide 1: Resilient Growth: Del Monte Pacific 1Q FY2022 Results
RESILIENT GROWTH DEL MONTE PACIFIC 1Q FY2022 RESULTS 9 September 2021 Nourishing Families. Enriching Lives. Every Day.
Slide 2: Disclaimer
Disclaimer This presentation may contain statements regarding the business of Del Monte Pacific Limited and its subsidiaries (the “Group”) that are of a forward-looking nature and are therefore based on management’s assumptions about future developments. Such forward-looking statements are typically
Slide 3: Contents
Contents ▪ Summary ▪ 1Q FY2022 Results ▪ Market Updates ▪ Sustainability ▪ Outlook
Slide 4: Notes to the Results
Notes to the Results ▪ First quarter is from 1 May to 31 July 2021 ▪ DMPL owns 87% of Del Monte Philippines, Inc. and 93.6% of Del Monte Foods, Inc. DMPL recognizes a 13% and 6.4% non- controlling interest (NCI) in these two subsidiaries, respectively. These comprise the NCI line in the P&L. Net pro
Slide 5: 1Q FY2022 Highlights
1Q FY2022 Highlights ▪ DMPL Group sustained its strong performance from full year FY2021 with net profit of US$18.3m in 1Q, a marked turnaround from the US$3.2m loss in the prior year quarter ▪ EBITDA rose 77% to US$75.0m ▪ US subsidiary Del Monte Foods increased its EBITDA to US$37.5m from US$10.4m
Slide 6: Outlook
Outlook ▪ Strengthen our core business, expand the product portfolio, in response to consumer preference 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 e
Slide 7: 1Q FY2022 Results Summary
1Q FY2022 Results Summary ▪ Sales of US$462.1m, +12% Sales % Change Americas +10 Philippines +2 (in peso terms -2) S&W +20 FieldFresh India (equity accounted) +41 (in rupee terms +37) All figures below are vs prior year quarter: ▪ EBITDA of US$75.0m, up 77% from US$42.4m, due to higher sales, better
Slide 8: 1Q FY2022 Results
1Q FY2022 Results 1Q 1Q In US$m Chg (%) Comments FY2021 FY2022 Higher USA and international market sales including Turnover 413.1 462.1 +11.9 S&W business in Asia Gross profit 94.1 133.4 +41.8 Higher sales, better sales mix in USA, lower costs EBITDA 42.4 75.0 +76.7 Same as above plus lower G&A expe
Slide 9: 1Q FY2022 Turnover Analysis
1Q FY2022 Turnover Analysis 1% Americas 34% 65% Asia Pacific Europe Americas +10.0% ▪ Branded retail and foodservice sales grew by a combined 17% offsetting reduced sales of non-core private label as planned Asia Pacific +14.7% ▪ Strong sales of S&W fresh pineapple coming off a low base in the prior
Slide 10: Market Updates for 1Q FY2022
Market Updates for 1Q FY2022
Slide 11: Del Monte Foods USA 1Q FY2022
Del Monte Foods USA 1Q FY2022 ▪ DMFI’s sales for 1Q FY2022 were US$298.1m or 65% of Group sales ✓ Branded retail and foodservice sales grew by 17% ✓ Overall sales up 11% as non-branded private label sales were reduced as planned ▪ Continued to innovate and expand product portfolio ✓ Del Monte Fruit
Slide 12: USA
USA Market Share Market Share Canned Vegetable (#1) Canned Fruit (#2) Market Share Market Share Fruit Cup Snacks (#2) Canned Tomato (#3) ▪ Del Monte brand outperformed across categories as consumers continued to turn to trusted brand names for meal preparation and healthy snacks. Canned vegetable an
Slide 13: USA 1Q Marketing Highlights
USA 1Q Marketing Highlights Pocket Pies distribution WIN at Walmart Veggieful Riced Veggies launch off to a good start • Successful end cap display event translating into • Distribution wins including Kroger, Publix and HEB permanent distribution in 2H • New Veggieful creative campaign amplifying ta
Slide 14: USA 1Q Marketing Highlights
USA 1Q Marketing Highlights Back-to-school campaigns Del Monte Fruit Infusions • National social media Facebook/Instagram and Influencer • New Del Monte fruit cup snacks in refrigerated produce, with campaigns for fruit cups value-added wellness benefits • Launched first Tik Tok campaign with prelim
Slide 15: USA PR Highlights
USA PR Highlights Garnered 656+ million impressions in 1Q Very positive media verbatims for Joyba Strong coverage of Del • "I'm excited to drink my Joyba as a Friday afternoon Monte Foods treat!” - Food Navigator Innovation Media Event, • "I especially liked the Joyba Bubble Tea :)" - VegOut featuri
Slide 16: USA Foodservice
USA Foodservice NEW College Inn Business • Replaced Competitor Hanover Broths • Volume: 15,000 cases • Revenue: US$382,500 • Distribution Locations: 9 • Unipro Member 1 16
Slide 17: Del Monte Philippines 1Q FY2022
Del Monte Philippines 1Q FY2022 ▪ DMPL’s 2nd largest and most profitable subsidiary, Del Monte PhiIippines, Inc., achieved sales of US$176.0m for 1Q FY2022, up 20% versus prior year ✓ International sales rose 40% to US$67.8m on higher Premium Fresh Fruit, and Packaged Fruit and Beverages sales (incl
Slide 18: Philippines
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 leadership across all its major categories, with shar
Slide 19: Philippines Fruits
Philippines Fruits Building Relevance in Meal Occasions Expanding Availability In-Trade ▪ Piñadobo and Piñafritada mainstream TV/Digital ▪ Listing of Chunks Stand-Up Pouch 200g in 223 additional supermarkets ▪ Downline seeding/distribution packs: +2,670 Sari-sari stores (mom and pop) ▪ ‘Staylebratio
Slide 20: Philippines Beverage
Philippines Beverage Strengthened the core strengths of each brand, even while improving pandemic relevance during COVID-19: 100% Pineapple Juice: Del Monte Juice Drink: Delicious and healthy Super Fruit campaign promises strong flavors to drive home consumption occasions. immunity (Vitamin ACE) plu
Slide 21: Philippines Beverage – Fit 'n Right
Philippines Beverage – Fit ‘n Right Major relaunch of 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 ▪ Modernizes Fit ‘n Right to reflect the needs of younger consumers, who are empowered by choice and
Slide 22: Philippines Beverage – Mr. Milk
Philippines Beverage – Mr. Milk WHAT IS MR. MILK? ▪ Fruit- and yogurt-flavored milk drink (plain, strawberry, green apple + mango) loved by kids ▪ Sold in packs of six at P50, providing moms better value-for-money RESULTS IN ONLY 13 MONTHS…. ▪ Placed in about 53K outlets nationwide (including 46K te
Slide 23: Philippines Culinary
Philippines Culinary Increase regular usage of Del Monte Tomato Sauce in line with the rise in Distribution expansion of Del Monte home cooking Condiments in resealable pouch beyond supermarkets Market Stalls E-Commerce 23
Slide 24: Philippines Culinary
Philippines Culinary Launch of the New Del Monte Quick ‘n Easy Ensure consumption frequency by Asian Flavors - Green Curry, Red Curry and highlighting the relevance of Del Monte Teriyaki Marinade – bringing international Spaghetti during special moments and in flavors into consumers’ homes different
Slide 25: Philippines Snacks - Biscuits
Philippines Snacks - Biscuits 5.50 In July, we further expanded 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: Munchsters • Made with Real Potato • Delicious
Slide 26: Del Monte Philippines JV with Vinamilk
Del Monte Philippines JV with Vinamilk ▪ Del Monte Philippines, Inc. (DMPI) entered into a JV with Vinamilk to expand into the dairy sector in the Philippines. The JV will import dairy products from Vinamilk, and market and distribute them in the Philippines through DMPI ▪ Vinamilk is among the Top
Slide 27: Del Monte Philippines JV with Vinamilk
Del Monte Philippines JV with Vinamilk DRINKABLE YOGURT Focus on Dairy sub-categories: ✓ with high growth potential ✓ where Vinamilk’s technical expertise can be leveraged ✓ where DMPI can profitably compete FLAVORED MILK FRESH MILK TEA (UHT) 27 17
Slide 28: S&W Market Overview
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 to Japan, South Korea and the Middle East Hema ▪ E-
Slide 29: S&W 1Q FY2022 Results
S&W 1Q FY2022 Results ▪ 1Q sales of S&W branded business rose 20% on higher sales of fresh pineapples in China and South Korea ✓ Recovered from low base in 1Q FY2021 due to pandemic in China ✓ Expanded distribution coverage with 747 new stores for the Company’s top 3 distributors in China. 3,000 Goo
Slide 30: FieldFresh India
FieldFresh India ▪ DMPL’s share of loss in 1Q was US$0.7m, same level as prior year quarter. Business continued to focus on e- commerce partly offset by declines in the culinary category from high base of pantry loading last year at the onset of the pandemic in India ▪ E-commerce grew by 43% for Del
Slide 31: Sustainability
Sustainability ▪ Del Monte Pacific Limited published its FY2021 Sustainability Report – “Sustaining our Future” ▪ DMPL aligned its sustainability pillars with the UN Sustainable Development Goals ▪ Del Monte Foods, Inc. (DMFI) reclaimed pineapple juice from tidbits which were added to Fruit Infusion
Slide 32: Outlook
Outlook ▪ Strengthen our core business, expand the product portfolio, in response to consumer preference 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 e