Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Q2 FY2021 Earnings Presentation
37 slides from Del Monte Pacific's earnings presentation, Dec 10, 2020
Slide 1: Del Monte Pacific 2Q FY2021 Results
DEL MONTE PACIFIC 2Q FY2021 RESULTS 10 December 2020
Slide 2: Disclaimer
Disclaimer This presentation may contain statements regarding the business of Del MontePacificLimitedanditssubsidiaries(the“Group”)thatareofaforward- looking nature and are therefore based on management’s assumptions aboutfuturedevelopments.Suchforward-lookingstatementsaretypically identified by wor
Slide 3: Contents
Contents ▪ Summary ▪ 2Q FY2021 Results ▪ 1H FY2021 Results ▪ Del Monte Philippines Bond ▪ Market Updates ▪ Sustainability ▪ Outlook
Slide 4: Notes to the 2Q FY2021 Results
Notes to the 2Q FY2021 Results ▪ Second quarter is from 1 August 2020 to 31 October 2020. ▪ DMPL owns 88% of Del Monte Philippines, Inc and 93.6% of Del Monte Foods, Inc. DMPL, therefore, recognises a 12% and 6.4% non-controlling interest (NCI) in these two subsidiaries, respectively. These comprise
Slide 5: 2Q FY2021 Highlights
2Q FY2021 Highlights ▪ Group sales grew by 12% on higher consumption of healthy, shelf-stable food at home – USA sales expanded by 13% and Philippines sales increased by 10% ▪ Del Monte Pacific delivered EBITDA of US$94m and net profit of US$22m, a turnaround from losses last year due to one-off exp
Slide 6: Outlook
Outlook ▪ To meet sustained demand for our trusted, healthy and shelf-stable products, we will continue to optimise our production while implementing strict safety measures against COVID-19 ▪ Strengthen our core business, expand the product portfolio, in response to market trends for health and well
Slide 7: DMPL 2Q FY2021 Group Results Summary
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 2Q FY2021 Group Results Summary ▪ Sales of US$623.5m, +12% Sales % Change Americas +13 Philippines +10 (in peso terms +4) S&W -10 FieldFresh India (equity accounted) -9 (in rupee terms -3) There are no one-off items this quarter. All figures belo
Slide 8: DMPL 2Q and 1H FY2021 One-Off Expense/(Income)
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 2Q and 1H FY2021 One-Off Expense/(Income) There are no one-off items this period For the three months ended For the six months ended Amounts in US$ million 31 October 31 October FY2021 FY2020 FY2021 FY2020 % % (Unaudited) (Unaudited) (Unaudited)
Slide 9: DMPL 2Q FY2021 Results – As Reported
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 2Q FY2021 Results – As Reported 2Q 2Q In US$m Chg (%) Comments FY2020 FY2021 Higher USA, Philippines and S&W packaged sales driven by Turnover 558.7 623.5 +11.6 the pandemic Higher volume, better sales mix and active cost Gross profit 134.1 159.7
Slide 10: Del Monte Philippines Bond
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Philippines Bond ▪ In October, Del Monte Philippines successfully raised PhP 6.47bn (US$134m) worth of fixed-rate bonds ▪ The issuance, which consisted of 3-year bonds at 3.484% pa interest rate and 5-year bonds at 3.7563% pa, was oversubscr
Slide 11: DMPL 2Q FY2021 Turnover Analysis
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 2Q FY2021 Turnover Analysis 1% 27% Americas 72% Asia Pacific Europe Americas +12.9% ▪ Sustained higher demand from the pandemic ▪ The principal categories experienced strong growth as consumers chose healthy and shelf-stable products in response
Slide 12: 1H FY2021
1H FY2021
Slide 13: DMPL 1H FY2021 Group Results Summary
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 1H FY2021 Group Results Summary ▪ Sales of US$1bn, +11% Sales % Change Americas +13 Philippines +15 (in peso terms +10) S&W -14 FieldFresh India (equity accounted) -26 (in rupee terms -21) There are no one-off items this period. All figures below
Slide 14: DMPL 1H FY2021 Results – As Reported
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 1H FY2021 Results – As Reported 1H 1H In US$m Chg (%) Comments FY2020 FY2021 Higher USA, Philippines and S&W packaged sales driven by Turnover 934.6 1,036.5 +10.9 the pandemic Higher volume, better sales mix and active cost Gross profit 225.3 253
Slide 15: DMPL 1H FY2021 Turnover Analysis
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 1H FY2021 Turnover Analysis 1% 29% Americas 70% Asia Pacific Europe Americas +13.1% ▪ Sustained higher demand from the pandemic ▪ The principal categories experienced strong growth as consumers chose healthy and shelf-stable products in response
Slide 16: Market Updates for 2Q FY2021
Market Updates for 2Q FY2021
Slide 17: USA
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. USA Market Share Market Share Market Share Market Share Canned Vegetable (#1) Canned Fruit (#2) Fruit Cup Snacks (#2) Canned Tomato (#3) ▪ Market share for Canned Vegetable, Fruit and Tomato temporarily impacted due to out of stock in September/Octobe
Slide 18: Del Monte Foods USA 2Q Results
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Foods USA 2Q Results ▪ DMFI’s 2Q sales improved by 13% to US$446.7m due to higher branded retail sales, up 21%, arising from the pandemic • Consumers staying at home, preparing meals and snacking with DMFI’s trusted, healthy and shelf-stable
Slide 19: Del Monte Foods USA 2Q Results (cont'd)
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Foods USA 2Q Results (cont’d) ▪ Ecommerce sales, coming off a low base, were up significantly despite tight supply which tempered full sales potential. Our marketing investment continues to support brand awareness, findability and conversion
Slide 20: USA – New Products
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. USA – New Products Del Monte® VeggiefulTM Pocket Pies Start Ship: May 2020 Start Ship: Aug 2020 3 Delicious Varieties Each variety: Each Pocket Pie contains: ✓ Boosts the flavour of mains, ✓ 1 full serving of vegetables sides and soups ✓ Crust made wi
Slide 21: USA - Marketing
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. USA - Marketing Del Monte® Fruit Cup Back to School ✓ New campaign creative debut Contadina FY2021 Marketing: ✓ Strong digital, social, PR, and shopper support ✓ Establishing new modern Italian positioning ✓ Strong share growth ✓ Partnering with chef
Slide 22: USA - PR Highlights
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. USA - PR Highlights ▪ 3.8bn garnered impressions - In 2Q, Del Monte Brands and Corporate secured nearly 1,500 media placements garnering 3.8bn impressions ▪ Coverage with top tier media – Our brands earned top of mind awareness with parents and famili
Slide 23: USA - Foodservice
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. USA - Foodservice Utilising our foodservice distribution network, we supplied much needed shelf-stable products for meal kit distribution to government food-relief organisations across USA. This generated incremental sales of over 250,000 cases year-t
Slide 24: Philippines
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines Market Share Market Share Market Share Packaged Pineapple (#1) Canned Mixed Fruit (#1) RTD Juices ex-SUP* (#1) Market Share Market Share Tomato Sauce (#1) Spaghetti Sauce (#1) ▪ Del Monte continues to enjoy strong market share leadership a
Slide 25: Philippines
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines ▪ In 2Q, Philippines sales grew by 10% in US dollar terms and 4% in peso terms, demonstrating the resilience of Del Monte during home quarantine ▪ Retail sales rose 13% despite a weak economy and high unemployment ▪ However, this was offse
Slide 26: Philippines - Fruits
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines - Fruits Core communications focused on Communications designed to be even more increasing consumption: relevant in a pandemic environment: Mixed Fruits: in-home, small scale celebrations “Stay-Lebrations” Canned Pineapple: health and immu
Slide 27: Philippines - Beverage
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines - Beverage Communications strengthened core strengths of the brand, even while improving to be more relevant during the pandemic: 100% Pineapple Juice: Immunity Del Monte Juice Drink: health Del Monte Fit ‘n Right: and protection against d
Slide 28: Philippines - Culinary
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines - Culinary Maximising the opportunities from increased home-cooking incidence: Promoting an array of Del Monte cooking Del Monte Tomato Sauce: ingredients online via ‘Everyday Sauce Special’ Del Monte Love to be Home Food Box Campaign (TV/
Slide 29: Philippines - Culinary
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines - Culinary Highlighting natural ingredients: Del Monte Quick ‘n Easy: Launch of the Del Monte Spaghetti Sauce: Relaunch via new #AchieveRealSarap campaign, a Superiority campaign that banners the pushing the Natural Ingredients promise rea
Slide 30: S&W
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W ▪ COVID-19 started in China which is S&W’s largest market in Asia. The pandemic affected the Fresh market in China most significantly but is now recovering ▪ It also affected the foodservice channel especially in South Korea for processed products
Slide 31: S&W
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W ▪ 2Q sales of S&W shelf-stable packaged pineapple products in Asia and the Middle East improved significantly by 34% over last year with robust sales of canned pineapples ▪ Sales of fresh pineapples, the majority of which are branded S&W, grew by
Slide 32: S&W China distributor activities
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W China: S&W distributor Eachtake being S&W distributor Goodfarmer displaying co- interviewed in TV News about CIIE Exhibition branding fresh pineapples in their booth Using video to introduce our farm and brand at Greenland Group Booth (Greenland i
Slide 33: S&W Singapore and Malaysia promotions
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W Singapore: 7th month promotion with Giant 10.10 Promotions with Potboy Malaysia: E-commerce developments with online partners such as Lazada, Shopee and Potboy 33
Slide 34: FieldFresh India
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. FieldFresh India ▪ DMPL’s share of loss in 2Q was US$0.2m, lower than prior year quarter’s US$0.5m as business continued to recover from the impact of the pandemic on foodservice and QSR business. Foodservice accounted for about 50% of sales pre-pande
Slide 35: Del Monte Raw Seeds – Amazon Exclusive Launch
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Raw Seeds – Amazon Exclusive Launch Variants: Pumpkin Seeds Sunflower Seeds Flax Seeds Chia Seeds 35
Slide 36: Sustainability
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Sustainability ▪ DMPL subsidiaries, Del Monte Foods (DMFI) and Del Monte Philippines, issued their Sustainability Goals ▪ DMFI appointed a seasoned Senior Sustainability Manager, Molly Laverty ▪ Research developed a new water treatment design that imp
Slide 37: Outlook
Outlook ▪ To meet sustained demand for our trusted, healthy and shelf-stable products, we will continue to optimise our production while implementing strict safety measures against COVID-19 ▪ Strengthen our core business, expand the product portfolio, in response to market trends for health and well