Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — 3Q FY2022 Earnings Presentation
35 slides from Del Monte Pacific's earnings presentation, Mar 10, 2022
Slide 1: Resilient Growth: 3Q and 9M FY2022 Results
RESILIENT DEL MONTE PACIFIC 3Q AND 9M FY2022 RESULTS GROWTH 10 March 2022 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 ▪ 3Q FY2022 Results ▪ 9M FY2022 Results ▪ Market Updates ▪ Sustainability ▪ Outlook
Slide 4: Notes to the Results
Notes to the Results ▪ 3Q is from 1 November to 31 January 2022 ▪ 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 profit
Slide 5: 3Q and 9M FY2022 Highlights
3Q and 9M FY2022 Highlights 3Q ▪ DMPL grew sales by 5% to US$659.4m on higher sales in USA and fresh pineapple exports ▪ Higher commodity and transportation costs impacted profitability 9M ▪ DMPL increased sales by 6% to US$1.8bn on higher sales in USA, S&W fresh and packaged products ▪ US subsidiar
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: 3Q FY2022 Results Summary
3Q FY2022 Results Summary ▪ Sales of US$659.4m, +5% Sales % Change Americas +6 Philippines -1 (in peso terms +4) S&W +11 FieldFresh India (equity accounted) -6 (in rupee terms -4) All figures below are vs prior year quarter: ▪ EBITDA of US$91.0m, down 8% from US$99.0m, due to higher costs and trade
Slide 8: 3Q FY2022 Results
3Q FY2022 Results 3Q 3Q In US$m Chg (%) Comments FY2021 FY2022 Turnover 628.4 659.4 +4.9 Higher sales in USA and fresh pineapple exports Gross profit 168.9 163.2 -3.4 Higher costs and trade promotion in USA Gross margin (%) 26.9 24.7 -2.2ppts Same as above EBITDA 99.0 91.0 -8.1 Lower gross profit Ne
Slide 9: 3Q FY2022 Turnover Analysis
3Q FY2022 Turnover Analysis 1% Americas 28% 71% Asia Pacific Europe Americas +6.3% ▪ Branded retail sales grew by 2.5% offsetting reduced sales of non-core private label as planned; Foodservice sales increased significantly by 48% ▪ In Americas, branded retail accounted for 71% while foodservice and
Slide 10: 9M FY2022 Results
9M FY2022 Results
Slide 11: 9M FY2022 Results Summary
9M FY2022 Results Summary ▪ Sales of US$1.8bn, +6% Sales % Change Americas +7 Philippines -2 (in peso terms 0) S&W +16 FieldFresh India (equity accounted) +6 (same in rupee terms) All figures below are vs prior year nine-month period: ▪ EBITDA of US$273.3m, up 16% from US$235.8m, due to higher sales
Slide 12: 9M FY2022 Results
9M FY2022 Results 9M 9M In US$m Chg (%) Comments FY2021 FY2022 Turnover 1,664.9 1,772.5 +6.5 Higher sales in USA, S&W fresh and packaged products Higher sales, better sales mix in USA, price increases to Gross profit 422.8 475.1 +12.4 offset inflation and lower FY2021 pack costs in USA Gross margin
Slide 13: 9M FY2022 Turnover Analysis
9M FY2022 Turnover Analysis 1% Americas 28% Asia Pacific 71% Europe Americas +7.4% ▪ Branded retail sales grew by 9% offsetting reduced sales of non-core private label as planned; Foodservice sales also increased significantly by 44% ▪ In Americas, branded retail accounted for 73% while foodservice
Slide 14: Market Updates for 3Q and 9M FY2022
Market Updates for 3Q and 9M FY2022
Slide 15: Del Monte Foods USA 3Q FY2022
Del Monte Foods USA 3Q FY2022 ▪ DMFI’s 3Q sales were US$468.4m or 71% of Group sales ✓ Sales up 6.5% on higher branded retail sales primarily canned vegetable and fruit which more than offset the planned reduction of low-margin private label ✓ Del Monte canned vegetable, which had the highest contri
Slide 16: Del Monte Foods USA 9M FY2022
Del Monte Foods USA 9M FY2022 ▪ DMFI’s 9M sales were US$1.2bn or 70% of Group sales ✓ Sales up 8% driven by continued robust increases across all major segments led by canned vegetable and fruit following improvement in supply and distribution gains ✓ Branded retail and foodservice sales were up 9%
Slide 17: USA Market Share
USA Market Share Market Share Market Share Canned Vegetable (#1) Canned Fruit (#2) Fruit Cup Snacks (#2) Market Share Market Share Canned Tomato (#3) Broth (#2) ▪ Del Monte brand performed well in its traditional canned categories as consumers continue to reach for trusted brands and as we continued
Slide 18: USA 3Q Marketing Highlights
USA 3Q Marketing Highlights Fruit cup snacks extend ‘Say Yes’ Veggieful continues to reinforce Vacuum Packed Shelf talk with campaign into Return to School craveworthy taste in January ‘New coupon drives awareness and trial Year New You’ 18
Slide 19: USA 3Q Marketing Highlights
USA 3Q Marketing Highlights National Choose Good PR Support for Awards Do Good Promotion Choose Good Do Good Growing Great Spokesperson Jamie Hess, one of Instagram’s favorite fitness and health coaches, promoted charity tie-in with Choose Good Do Good leading retailers Product of the Year 2022 - Jo
Slide 20: USA 3Q Marketing Highlights
USA 3Q Marketing Highlights College Inn (CI) Holiday Green Bean Casserole Holiday Kroger CI Holiday with Veg Ahold Digital Giant Eagle CI Holiday with Veg BJs Demo Sign Publix Co-Op Ad Walmart Holiday Meijer Shelf Sign Leftovers with Veg/Contadina 20
Slide 21: USA 3Q Foodservice
USA 3Q Foodservice NEW National Account Business NEW Non-Commercial Business Riced Cauliflower 987 Hospitals (Nationwide) 915 Units 6 Pop-Up Concepts: 100% Vegetable. No Waste. New Secondary Supplier: Pineapple Tidbits Concept: Kazan Concept: All Caps 139 Units New Secondary Supplier: Pineapple Tidb
Slide 22: USA Innovation Platforms
USA Innovation Platforms Innovation Platforms Inspired by Consumer Trends Closest Plant-Based Culinary Purposeful Everyday to Fresh Goodness Meal Helpers Snacking Value FY22 Vac Pack Frozen Riced San Bone Beef Wellness Joyba™ Del Monte Classics Vegetables Veggie Marzano Reduced Infusions Bubble Frui
Slide 23: USA 3-Year Trailing Innovation Growth Outlook
USA 3-Year Trailing Innovation Growth Outlook ▪ Items launched in Net Sales (US$m) Linear (Net Sales (US$m)) the last 3 years are $14 13.6 13.9 13.5 on trajectory to 12.4 12.2 12.5 11.7 11.8 11.8 reach 8.5% of $12 10.9 10.2 9.6 DMFI’s total sales $10 9.1 7.8 8.8 8.1 8.6 7.57.8 8.6 in FY2023 $8 7.47.
Slide 24: Del Monte Philippines 3Q and 9M FY2022
Del Monte Philippines 3Q and 9M FY2022 ▪ DMPL’s 2nd largest and most profitable subsidiary, Del Monte PhiIippines, achieved sales of US$197.1m for 3Q, flat in USD terms but +5% in peso, and US$559.2m for 9M, +7% in USD terms and +9% in peso ✓ Sales in the Philippines recovered after two quarters of
Slide 25: Philippines Market Share
Philippines -3.8pts Market Share Market Share Market Share Packaged Pineapple (#1) Canned Mixed Fruit (#1) RTD Juices ex foil pouches (#1) -0.9pts -0.7pt Market Share Market Share Tomato Sauce (#1) Spaghetti Sauce (#1) ▪ Del Monte continues to enjoy strong market share leadership across all its majo
Slide 26: Philippines Fruits
Philippines Fruits Being an integral part of the Filipino Noche Buena (Christmas Eve meal) ▪ NEW Fiesta Fruit Cocktail campaign shows that nothing lights up one’s Christmas table more than Fruit Salad. Encouraging families to not skip on preparing their fruit salad, despite the many varied circumsta
Slide 27: Philippines Beverage
Philippines Beverage Continuously reinforcing the core strengths of each brand, even while improving pandemic relevance during COVID-19: Del Monte 100% Pineapple Del Monte Juice Drink: Juice: New thematic campaign highlighting Juice Drink’s PJ Tetra 20 Kada Baso (P20/glass) delicious variety of flav
Slide 28: Philippines Culinary
Philippines Culinary Ensured Del Monte Spaghetti Sauce was present Encouraged households on the table of every Filipino family during to continue their Christmas. Featured Pamasko (Christmas) Packs Christmas traditions, that helped stimulate in-store purchase and including cooking favorite could als
Slide 29: Philippines Mr. Milk and Biscuits
Philippines Mr. Milk and Biscuits Mr. Milk continues to grow Expanded Fruity Munchsters presence profitably across all trade via increased distribution and visibility segments programs in key channels, supermarkets and sari-sari (mom and pop) stores Created awareness on Del Monte Potato Crisps among
Slide 30: Philippines Foodservice
Philippines DMPI Food Service Foodservice Regaining vitality as economy opens NEW National Account Business • 3Q sales grew by 11% vs prior year quarter and ahead of plan by 13%. 3Q gross margin remained healthy vs prior year. • 9M sales grew strongly by 32% vs prior year and New Secondary Supplier:
Slide 31: S&W Market Overview
S&W Market Overview ▪ Our high quality, premium MD2 fresh pineapple makes us the largest fresh pineapple exporter to China, with 53% volume share ▪ One of the 3 biggest fresh pineapple exporters to Japan, South Korea and the Middle East ▪ E-commerce and digital are growing with North Asia having the
Slide 32: S&W 3Q and 9M FY2022
S&W 3Q and 9M FY2022 ▪ 3Q sales of S&W branded business grew by 11% on higher sales of fresh pineapple ▪ 9M sales of S&W branded business grew strongly by 16% on higher fresh pineapple, canned pineapple and juice sales ▪ S&W pineapples sold in China benefitted from expanded distribution coverage fro
Slide 33: Sustainability
Sustainability Agricultural Practices Responsible Sourcing Transport Efficiency COVID-19 Response Updated Integrated Issued Supplier Code of Used double-decker Del Monte Foundation Pest Management Conduct that sets out trucks on 23% of third donated products to manual for pineapple the requirements
Slide 34: Sustainability
Sustainability Diverting Waste Reducing Emissions Conserving Water Innovating Packaging ▪ New steam peeler ▪ Setting aggressive ▪ 25+m pounds of food ▪ Measuring scope in Hanford, CA goals: diverted from landfills 3 greenhouse gas saved 35+m gallons of –By 2030: convert due to upcycling and emission
Slide 35: 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