Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — H1 2011 Earnings Presentation
10 slides from Fraser & Neave's earnings presentation, May 13, 2011
Slide 1: FY2011 Half Year Results
Fraser & Neave Holdings Bhd FY2011 Half Year Results Dato’ Ng Jui Sia Chief Executive Officer Financial highlights • Strong double-digit growth • Driven by Soft Drinks, Dairies Thailand and Properties • Revenue gained 16% to cross RM2b mark • PBIT gained 42% to RM283m • Despite lower earnings from D
Slide 2: Financial highlights; Group revenue
Financial highlights • Improvement in all key ratios • EPS jumped 54% • Interim dividend more than doubled; special dividend of 15 sen • Net cash position of RM212m Change Key ratios 1H2011 1H2010 (%) EPS (sen) 1 66.8 43.3 + 54.3 NAV (RM) 4.22 3.75 + 12.5 Dividend (sen) 35.0 2 16.5 + 112.0 PBIT marg
Slide 3: Group PBIT and PBIT analysis
Group PBIT • Group PBIT jumped 42% • Excluding property, profit up 20% • Higher input costs affected impacted margins • Higher volume and operating efficiencies helped improve Soft Drinks and Dairies Thailand’s margins • Dairies Malaysia’s margins affected by reduction in sugar subsidy and higher ra
Slide 4: Key raw material price increases and 5-year trend
Key raw material price increases Input costs have gone up considerably, especially sugar +45% +21% +11% +13% Half year ended 31st March 2011 Per metric tonne 5-year trend • Record half year results to date • Revenue exceeds RM2b mark • Consistent double digit profit growth over 5 years +42.4% RM300m
Slide 5: Operations review: Soft Drinks
Operations review Soft Drinks • PBIT jumped 49% • Volume expansion and operational efficiencies offset higher sugar cost • Volume expanded 15% • > 8.5m cases in Jan 11 - another CNY record • Accelerated revenue growth • Strong demand from key brands • Successful launches of new products • Red Bull d
Slide 6: Soft Drinks new launches; Dairies Malaysia
Soft Drinks | New launches Dairies Malaysia • Marginal improvement in revenue despite lower volume • PBIT contracted 36% • Increased prices; partial cost recovery +1% -36.1% -6% 1H2010 1H2011 1H2010 1H2011 1H2010 1H2011 . VOLUME . REVENUE . PBIT
Slide 7: Dairies Thailand; Properties/Others
Dairies Thailand • Strong volume growth in all markets • Domestic volume grew 9% from across all categories • Indochina grew 55% from strong market development, Tea Pot push • Philippines OEM helped boost Export (+41%) • PBIT improved 24% • Volume growth, operational efficiencies helped offset highe
Slide 8: Business outlook
Business outlook Business outlook Positive factors Negative factors • Healthy GDP growth in Malaysia, • Rising inflationary pressure Thailand and Indochina • Volatile oil/ commodity prices • Positive consumer sentiment • Higher competitive landscape • Tourism growth • Impact of perception of subsidy
Slide 9: Gearing up for the expiry of KO franchise
Gearing up for the expiry of KO franchise Gearing up for expiry of KO franchise Solidify Regionalisation Regionalisation Property market projects leadership - Soft Drinks - Dairies Rationalisation Water plant South Thailand Contract pack Unlock land Indochina - bank - Seed for Singapore Building F&N
Slide 10: Thank you
Thank you next speaker: Koh Poh Tiong Chief Executive Officer, Food & Beverage
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