Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Q4 2009 Earnings Presentation
27 slides from Del Monte Pacific's earnings presentation, Feb 23, 2010
Slide 1: SGX Financial Statement and Related Announcement
FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT Page 1 of 1 Print this page Del Monte Pacific Fourth Quarter and Full Year 2009 Results Presentation * Financial Statement And Related Announcement * Asterisks denote mandatory information Name of Announcer * DEL MONTE PACIFIC LIMITED Company Registration
Slide 2: Fourth Quarter and Full Year 2009 Results
Del Monte Pacific Limited Fourth Quarter and Full Year 2009 Results 23 February 2010 1
Slide 3: Cautionary Note on Forward-looking Statements
Cautionary Note on Forward- Forward-looking Statements 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. S
Slide 4: Contents
Contents Executive Summary 4Q 2009 Results Full Year 2009 Results Balance Sheet Business Updates Outlook 3
Slide 5: Executive Summary
Executive Summary • 4Q09 returned to profitability of US$3.9m, from a loss of US$1.7m in 3Q09 • Exports sales were significantly down by 25% • Philippines sales slightly lower by 2% • Supply issues led to foregone sales of US$14m and foregone operating profit of US$5.7m in the Philippines • 4Q09 net
Slide 6: Supply Constraints
Supply Constraints • Suffered from constraints arising from supply issues • Led to foregone sales and profit in the Philippines • We are improving product availability through effective supply chain management In US$m 4Q2009 FY2009 Foregone Sales 14.1 24.1 Foregone Operating Profit 5.7 8.6
Slide 7: 4Q 2009 Results
4Q 2009 Results 6
Slide 8: Fourth Quarter 2009
Fourth Quarter 2009 4Q 4Q Chg In US$m Comments 2008 2009 (%) o Lower exports and Philippine sales o Foregone sales in the Philippine market of Turnover 122.4 115.1 -6.0 US$14.1m due to supply issues o Export sales down due to weak global demand Lower sales and higher costs of pineapple, Gross profit
Slide 9: 4Q Turnover Analysis
4Q Turnover Analysis Asia Pac -0.4% • Philippine sales declined 2% By Market due to lower sales of Fit ‘n Right from increased competition • Lower S&W processed sales Asia Pac partially offset by higher sales 82% E&NA of imported Del Monte products 18% and of fresh pineapples E&NA -25% • Lower volum
Slide 10: 4Q Margins
4Q Margins Gross margin Lower sales and higher costs Operating margin Lower gross profit % Higher other operating Margin 31.1 expenses 30 22.9 Net margin 20.1 Reduced operating income 20 15.7 8.5 10 3.4 0 Gross Profit Operating Profit Net Profit 4Q08 4Q09 9
Slide 11: 4Q Cash Flow Variance Analysis
4Q Cash Flow Variance Analysis Additional 3Q09 Operations Working Tax Capex investment Interest 4Q09 cap FieldFresh & others -US$36.1m -US$92.0m Net Debt Net Debt -0.8m -8.1m -5.3m +49.3m -8.0m +12.8m
Slide 12: Full Year 2009 Results
Full Year 2009 Results 11
Slide 13: Full Year 2009
Full Year 2009 FY FY Chg In US$m 2008 2009 (%) o Lower Philippines and export sales o Foregone sales in the Philippines of US$24.1m due to supply issues and US$9.2m due to currency translation Turnover 381.5 330.7 -13.3 o Export sales down due to weak global demand o Absent sales of disposed Chinese
Slide 14: FY Turnover Analysis
FY Turnover Analysis Asia Pac -12% • Lower sales due to lower By Market consumer demand in export markets • Philippine sales down by 6% Asia Pac which included the unfavourable impact from the 77% E&NA 5% weak Peso against the US 23% Dollar translation • Foregone sales of US$15.6m from the former Ch
Slide 15: FY Margins
Gross margin Higher costs and change in FY Margins sales mix, partially offset by better pricing in export market and favourable impact of Peso depreciation on cost translation % Margin Operating margin 30 Lower turnover and higher 25.2 costs 20.7 Net margin 20 Lower operating profit 14.9 9.7 7.8 10
Slide 16: Balance Sheet
Balance Sheet 15
Slide 17: Working Capital Management
Working Capital Management Successfully reduced working capital by US$50m from September 2009 level. No. of days 3Q 2009 4Q 2009 Chg Comment Actively managed inventory levels for various inputs; Inventory 119 79 (40) stricter implementation of inventory policies Discounting of receivables Receivable
Slide 18: Credit Standing
Credit Standing As of 31 December 2009 Loan utilisation: only 53% of bank credit lines Commercial bank lending grew at a faster pace of 10% in December compared to 6.6% in November Loan Mix: 58% Peso and 42% US$ to optimise natural hedge 81% Short term and 19% Long term Gearing and Coverage Ratios N
Slide 19: Business Updates
Business Updates 18
Slide 20: Philippines
Philippines 4Q sales slightly down by 2% All major product categories were up except for beverage Del Monte Fit ‘n Right juice drink in PET suffered from competition Supply issues led to foregone sales worth US$14 million and operating profit of US$5.7 million in 4Q Continued to launch new innovativ
Slide 21: S&W in Asia
S&W in Asia • Continued with the ‘Obsessively Good’ marketing campaign in Singapore focusing on the tomato range: Advertising in local newspaper and magazine Outdoor bus stop panel advertising Grocery sampling • For Vietnam, started distribution in Modern Trade and selected General Trade outlets • S
Slide 22: FieldFresh in India
FieldFresh in India 4Q sales more than tripled to almost US$5 million while contribution profit more than doubled Much better sales mix with the contribution of the Del Monte branded processed foods business and the rationalised product range in fresh exports under the FieldFresh brand However, the
Slide 23: New Product launches in India
New Product launches in India Del Monte brand is now available across 20 cities and has added more products and SKUs into its fold Launched the 1 kg Tomato ketchup in glass bottle which has been well received in the market Targeted at both housewives and the HORECA segments Also available in 540 gm
Slide 24: Launch of FieldFresh apples
Launch of FieldFresh apples Sourced from the Kashmir orchards Available in 2 different consumer packs (20 kg & 2 kg) 23
Slide 25: Outlook
Outlook 24
Slide 26: Outlook
Outlook Expects improved profits this year as compared to previous year But 1H 2010 may be lower than 1H 2009 as action plans will not have immediate results To improve product availability through effective supply chain management, including investments in processes and systems In the Philippines,
Slide 27: 1M EE tao,
1M EE tao,