Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — FY2024 Earnings Presentation
41 slides from Del Monte Pacific's earnings presentation, Jun 28, 2024
Slide 1: Del Monte Pacific 4Q FY2024 Results
Del Monte Pacific 4Q FY2024 Results 28 June 2024 1
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 typical
Slide 3: Contents
Contents ▪ Summary ▪ 4Q FY2024 Results ▪ FY2024 Results ▪ Market Updates ▪ Sustainability ▪ Outlook 3
Slide 4: Notes to the Results
Notes to the Results ▪ 4Q FY2024 is from 1 February to 30 April 2024 ▪ DMPL owns 89.54% of Del Monte Philippines, Inc. and 93.6% of Del Monte Foods, Inc. DMPL recognizes a 10.46% and 6.4% non-controlling interest (NCI) in these two subsidiaries, respectively. These comprise the NCI line in the P&L.
Slide 5: Highlights
Highlights Fourth Quarter FY2024 ▪ Del Monte Pacific Limited (DMPL) Group sales grew by 2% to US$597m on strong Fresh exports offsetting declines in USA ▪ The Group maintained its leading market share position across all core products ▪ Inventory-related waste, variable product, warehousing and dist
Slide 6: Outlook
Outlook In FY2025, the Group’s main priorities will be as follows: 1) Plans are underway for the selective sale of assets and injection of equity through strategic partnerships. 2) A task force has been formed to restore gross margins both in the U.S. and rest of DMPL from the 2H of FY2025 as the Gr
Slide 7: 4Q FY2024 Results Summary
4Q FY2024 Results Summary ▪ Sales of US$597.3m, +2.2% Sales % Change Americas -1.7 Philippines flat (in peso terms +3.3) International +9.4 India (equity accounted) +16 (in rupee terms +17) All figures below are vs prior year quarter and on recurring basis (without one-off expenses): ▪ EBITDA loss o
Slide 8: One-Off Expenses
One-Off Expenses oS Amounts in US$ million For the three months ended For the year ended 30 April 30 April FY2024 FY2023 FY2024 FY2023 (Unaudited) (Unaudited) (Unaudited) (Unaudited) DMFI one-off expenses: Severance 7.6 - 7.6 - Professional fees 4.6 - 4.6 - IPO* cost 48 - 48 - Settlement of legal cl
Slide 9: 4Q FY2024 Results
4Q FY2024 Results In US$m 4Q FY2023 4Q FY2024 Chg (%) Comments Strong fresh pineapple exports which offset lower sales in Turnover 584.6 597.3 +2.2 USA Gross profit 117.8 61.8 -47.6 Mainly due to inventory-related costs Gross margin (%) 20.2 10.3 -9.9ppts Same as above EBITDA 55.0 (22.4) -140.7 Same
Slide 10: 4Q FY2024 Turnover Analysis
4Q FY2024 Turnover Analysis Sales 2.9% Americas 26.2% 70.9% Asia Pacific Europe Sales growth Comments Americas -1.7% ▪ Driven by strategic shift away from lower-margin co-pack products (products which DMFI packs for other manufacturers), as well as lower packaged fruit sales on declining category tr
Slide 11: FY2024 Results Summary
FY2024 Results Summary ▪ Sales of US$2.4bn, flat Sales % Change Americas +0.6 Philippines flat (in peso terms flat) International -11.5 India (equity accounted) -1.2 (in rupee terms +2.4) All figures below are vs prior year and on recurring basis (without one-off expenses): ▪ EBITDA of US$152.3m, do
Slide 12: FY2024 Results – Reported Basis
FY2024 Results – Reported Basis In US$m FY2023 FY2024 Chg (%) Comments Higher sales in USA and higher exports of fresh pineapple Turnover 2,421.3 2,427.7 +0.3 to China and South Korea offset lower exports of packaged products Mainly due to inventory-related costs in USA and lower Gross profit 607.0
Slide 13: FY2024 Turnover Analysis
FY2024 Turnover Analysis Sales 1.8% 26.1% Americas 72.1% Asia Pacific Europe Sales growth Comments Americas +0.6% ▪ Driven by pricing actions in FY2023 and FY2024 ▪ Incremental volume from USDA ▪ Higher sales of College Inn and Kitchen Basics broth and stock ▪ Partly offset by lower sales from the n
Slide 14: Market Updates
Market Updates 14
Slide 15: Del Monte Foods USA 4Q FY2024
Del Monte Foods USA 4Q FY2024 ▪ Sales of US$420m or 70% of Group sales ▪ Sales down 2% mainly due to the strategic shift away from lower-margin co- pack products that it packs for other manufacturers, as well as lower packaged fruit sales on declining category trends ▪ This offset the strong growth
Slide 16: USA Market Shares
USA Market Shares 23.0% +0.5pt 18.3% -1.1pt 24.9% -1.1pt Canned Vegetable (#1) Canned Fruit (#1) Fruit Cup Snacks (#2) 5.8% -0.4pt 9.2% +0.0pt Canned Tomato (#3) Broth & Stock (#2) Source for market shares: Circana OmniMarket Core Outlets, DMFI Custom DBs, Eq Vol share, Total US MULO, Latest 3M endi
Slide 17: USA Easter Holiday Performance
USA Easter Holiday Performance Del Monte reached historic Canned Vegetable and Pineapple share levels in Easter 2024 Del Monte Canned Vegetable Del Monte Canned Pineapple Easter Volume Share Easter Volume Share 23.7% 23.8% 8.9% 8.3% 7.9% 21.2% 5.3% 19.2% Easter 2021 Easter 2022 Easter 2023 Easter 20
Slide 18: USA 4Q – Marketing Highlights
USA 4Q – Marketing Highlights Strong Easter Execution Drove Canned Pineapple and Vegetable Share Gains at Walmart Dollar Share Gains 4 Weeks Ending 3/31/24 Del Monte: +1.4pts Private Label & Dole: (0.7pts) Del Monte: +0.44pts Private Label: (0.24pts) Libby’s: (0.41pts) Le Sueur: (0.18pts) 18
Slide 19: USA 4Q – Marketing Highlights
USA 4Q – Marketing Highlights Easter Execution at Sam’s Club Drove Double- Digit Sales Growth 8pk Veg Sales Growth 4 Weeks Ending 3/31/24 +21.7% vs. YA 19
Slide 20: USA 4Q – Marketing Highlights
USA 4Q – Marketing Highlights Take Root Organics campaign to drive awareness and trial via shoppable landing pages We promoted JOYBA during the National Bubble Tea Day Giant Eagle JOYBA Launch Shelf Signage, Catalina Offer Incentive, On-Platform Digital Media 20
Slide 21: USA Kitchen Basics
USA Kitchen Basics Unlocking the Potential of Kitchen Basics Growing KB at Key Retailers 21
Slide 22: USA JOYBA
USA JOYBA JOYBA has been growing volume steadily since launch, with peak sales in the late spring + summer months, key RTD Tea season 22
Slide 23: USA JOYBA
USA JOYBA JOYBA has expanded distribution significantly while maintaining a much higher velocity compared to the category 23
Slide 24: USA JOYBA
USA JOYBA Strong Customer Support & Marketing Activation 24
Slide 25: USA Products
USA Products eS New Item Platforms Inspired by Consumer Trends Global Cuisine & Bold Flavors Global / Spicy Flavors bubble fruit gel Bubble Fruit Get Unique “Charcuterie” Varieties: NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Tomato Reduced Sodium Health & Wellness Ba Sippabies Protein, Red Sod
Slide 26: USA 4Q – Foodservice
USA 4Q – Foodservice K12 Segment Expansion into new school districts and states Providing nutritious fruits and vegetables that are “Buy American Compliant” and meet the K12 School Nutrition dietary policies We strive to: • Expand the fruits and vegetables children have access to • Increase their fr
Slide 27: DMPL ex-DMFI 4Q FY2024
DMPL ex-DMFI 4Q FY2024 ▪ Sales of US$182.1m, +1% due to higher exports of fresh pineapple ▪ Philippine sales of US$68.8m, +3% in peso terms and flat in U.S. dollar terms ✓ Packaged fruit and beverage were up on new campaigns, value bundles and re-airing of TV ads ✓ Launched Del Monte Fruity Zing, a
Slide 28: Philippines – Market Shares
Philippines – Market Shares 95.7% +0.4pt 76.8% +2.1pts 40.2% -1.3pts Packaged Pineapple (#1) Canned Mixed Fruit (#1) RTD Juices ex foil pouches (#1) Category Growth: Category Growth: Category Growth: Past 3 mos.: +10.4% Past 3 mos.: +1.5% Past 3 mos.: +4.5% Past 6 mos.: +5.5% Past 6 mos.: -8.9% Past
Slide 29: Philippines – Fruits
Philippines – Fruits Mixed Fruits - New ‘Handa sa Swerte’ Canned Pineapple - campaign which promotes Del Monte colorful Re-airing of TV ad mixed fruits for good fortune in the new year (Kids love and dish versatility) Value Pack to entice consumers to use Del Monte Pineapples in their dishes 29
Slide 30: Philippines – Culinary
Philippines – Culinary Ketchup – Spaghetti Sauce - Tomato Sauce & Paste – Value Saver bundles Birthday Campaign Digital bundles for everyday cooking & Limited Edition Plates Promo 30
Slide 31: Philippines – Beverage
Philippines – Beverage Launched a new brand: Fruity Zing! Digital media campaign ❖ Duo flavors of real fruit juice (refreshing!) ❖ Competitive pricing ❖ On-the-go drinking ✓ Top-tier ad performance (AdNow Test) ✓ Placement in over 8,000 supermarkets and convenience stores ✓ Growing offtake ✓ Positiv
Slide 32: Philippines – Foodservice and Convenience
Philippines – Foodservice and Convenience Foodservice sales maintained Convenience business showed gains in 4Q Expanded portfolio with new Beverages ▪ Revenue flat vs prior year quarter ▪ Revenue +46% vs prior year quarter due to higher ▪ Del Monte products part of ingredient in 210 volume dishes of
Slide 33: S&W Fresh – China
S&W Fresh – China S&W Fresh Pineapple Joins the Fruit Tea Trend in China Goodfarmer, our biggest partner distributor in China, has introduced S&W Fresh Sweet 16 Pineapples in fruit tea chain “Cha Bai Dao” through its featured drink “Super Cup Fruit Tea” offered in 1,200 stores all over China. Likewi
Slide 34: S&W Fresh – China
S&W Fresh – China S&W, in partnership with Goodfarmer, celebrated the Pineapple Festival in Lilacs Shopping Mall in Shanghai China. The event was held from March 14 to 16. 34
Slide 35: S&W Fresh – South Korea
S&W Fresh – South Korea S&W Fresh, through its partner/distributor Shinsegae Food, held in-store promotions and fruit sampling of S&W Sweet 16 Fresh Pineapple across 25 E-Mart stores in Seoul, Korea between March to April 2024 35
Slide 36: S&W Packaged – Japan
S&W Packaged – Japan S&W Packaged, through our partner distributor, J Gerber & Co. Ltd., participated in FABEX Food And Beverage Expo held in Tokyo Japan from April 10 to 12, 2024. The Contadina Pineapples were featured in the booth, which was visited by companies such as Yaguchi, Seico Mart, Meikyu
Slide 37: S&W Packaged – China
S&W Packaged – China ▪ KFC launched a special NBA-themed Pineapple Beef Burger in their menu, featuring grilled S&W Pineapple Slice ▪ The special promotion ran from Feb to March 2024, covering 11,000 stores all over China KFC Pineapple Beef Burger featuring grilled S&W Pineapple Slices 37
Slide 38: S&W - Fresh Market Share
S&W - Fresh Market Share Market shares continue to improve in North Asia overall, and in China. More opportunities in South Korea and Japan. Source: CY 2020 – CY 2022 Imports Data from Asiafruit Congress Statistical Handbook; CY 2023-24 from Customs Data of Importing Country 38
Slide 39: Sustainability - Philippines
Sustainability - Philippines Renewable Energy Reforestation Rainforest Alliance Labor Awards DMPI‘s 4.1MW solar The Foundation, DMPI is Rainforest DMPI received two energy project for together with various Alliance certified Tripartite Partnership the fresh pack house partners, planted close until D
Slide 40: Sustainability - USA
Sustainability - USA Climate Roadmapping Community Giving DMFI initiated climate scenario analysis to align with our 2030 Science Based Targets. A In 4Q, DMFI donated a total of 2.3 million cross functional group identified 9 actions kilograms of food to non-profits. Our total across scopes 1, 2 and
Slide 41: Outlook
Outlook In FY2025, the Group’s main priorities will be as follows: 1) Plans are underway for the selective sale of assets and injection of equity through strategic partnerships. 2) A task force has been formed to restore gross margins both in the U.S. and rest of DMPL from the 2H of FY2025 as the Gr