Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — 3Q FY2024 Earnings Presentation
37 slides from Del Monte Pacific's earnings presentation, Mar 15, 2024
Slide 1: Del Monte Pacific 3Q FY2024 Results
Del Monte Pacific 3Q FY2024 Results 15 March 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 ▪ 3Q FY2024 Results ▪ 9M FY2024 Results ▪ Market Updates ▪ Sustainability ▪ Outlook 3
Slide 4: Notes to the Results
Notes to the Results ▪ 3Q FY2024 is from 1 November 2023 to 31 January 2024 ▪ 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.
Slide 5: Highlights
Highlights Third Quarter FY2024 ▪ Del Monte Pacific Limited (DMPL) Group sales declined by 5% to US$647m on lower USA, Philippines and packaged export sales despite a 17% growth in Fresh exports ▪ The Group maintained its leading market share position across core products ▪ Together with higher oper
Slide 6: Outlook
Outlook ▪ Expects to deliver improved branded revenue growth in FY2024 ▪ In the US, we are focused on increasing market share by executing a multi- faceted strategy including accelerating innovation, recapturing margins and growing contribution from under-penetrated channels ▪ In Asia, increasing pr
Slide 7: 3Q FY2024 Results Summary
3Q FY2024 Results Summary ▪ Sales of US$646.7m, -5.1% Sales % Change Americas -5.8 Philippines -2.1 (in peso terms -4.0) International -20.6 India (equity accounted) -7.3 (in rupee terms -5.7) All figures below are vs prior year quarter: ▪ EBITDA of US$40.5m, down 49% from US$80.2m, mainly due to hi
Slide 8: 3Q FY2024 Results
3Q FY2024 Results In US$m 3Q FY2023 3Q FY2024 Chg (%) Comments Lower sales in USA, Philippines and exports of packaged Turnover 681.2 646.7 -5.1 pineapple Gross profit 152.2 116.6 -23.4 Mainly due to higher operating costs Gross margin (%) 22.3 18.0 -4.3ppts Same as above EBITDA 80.2 40.5 -49.5 Same
Slide 9: 3Q FY2024 Turnover and Operating Profit Analysis
3Q FY2024 Turnover and Operating Profit Analysis Sales Operating 1.2% (4.6%) Profit 12.2% 26.1% Americas 72.7% 92.4% Asia Pacific Europe Sales growth Comments Americas -5.8% ▪ Driven by strategic shift away from lower-margin co-pack products (products which DMFI packs for other manufacturers), as we
Slide 10: 9M FY2024 Results Summary
9M FY2024 Results Summary ▪ Sales of US$1.8bn, flat Sales % Change Americas +1.4 Philippines -0.6 (in peso terms -0.8) International -19.2 India (equity accounted) -5.4 (in rupee terms -2.0) All figures below are vs prior year period on recurring basis. There was no one-off item this year but last y
Slide 11: 9M FY2024 Results – Reported Basis
9M FY2024 Results – Reported Basis In US$m 9M FY2023 9M FY2024 Chg (%) Comments Higher sales in USA and higher exports of fresh pineapple Turnover 1,836.7 1,830.5 -0.3 were offset by lower exports of packaged pineapple and lower Philippine sales Gross profit 489.2 360.4 -26.3 Mainly due to inflation
Slide 12: 9M FY2024 Turnover and Operating Profit Analysis
9M FY2024 Turnover and Operating Profit Analysis Sales Operating 1.4% -1.1% Profit 26.1% Americas 34.9% 66.1% 72.5% Asia Pacific Europe Sales growth Comments Americas +1.4% ▪ Driven by pricing actions in FY2023 and in August this year ▪ Incremental volume from USDA ▪ Partly offset by lower sales fro
Slide 13: Market Updates
Market Updates 13
Slide 14: Del Monte Foods USA 3Q FY2024
Del Monte Foods USA 3Q FY2024 ▪ Sales of US$466.4m or 72% of Group sales; sales down 6% due to the strategic shift away from lower-margin co-pack products that it packs for other manufacturers, as well as lower canned fruit and vegetable sales on declining category trends ▪ However, Del Monte canned
Slide 15: USA Market Shares
USA Market Shares 22.8% +1.1pts 20.4% +0.9pt 27.5% +0.7pt Canned Vegetable (#1) Canned Fruit (#2) Fruit Cup Snacks (#2) 6.0% +0.3pt 9.9% -0.1pt Canned Tomato (#3) Broth & Stock (#2) Source for market shares: Circana OmniMarket Core Outlets, DMFI Custom DBs, Eq Vol share, Total US MULO, Latest 9M end
Slide 16: USA Volume
USA Volume January 2024 volume grew after steady quarterly improvement in 2023 16
Slide 17: USA 3Q – Marketing Highlights
USA 3Q – Marketing Highlights Vegetable Fall Campaign Holiday • Base Vegetable and premium sliver label Retailer Programs – Holiday Partnerships: Del Monte, College Inn, Kitchen Basics, Ocean Spray, Green Bean Casserole Partnership: King’s Hawaiian, Betty Crocker, Country Crock Del Monte/Campbell’s/
Slide 18: USA 3Q – Marketing Highlights
USA 3Q – Marketing Highlights Canned Fruit & Pineapple – Holiday and New Year • Pinterest, Meta Retailer Media = Holiday 18
Slide 19: USA 3Q – Marketing Highlights
USA 3Q – Marketing Highlights College Inn Kitchen Basics • Pinterest, PR/Satellite Media Tour • Pinterest, PR/Satellite Media Tours & Influencer Food Network Celebrity Chef Claire Robinson Retailer Holiday Campaigns RD Amy Goodson 19
Slide 20: USA Kitchen Basics
USA Kitchen Basics Unlocking the Potential of Kitchen Basics 20
Slide 21: USA Products
USA Products New Item Platforms Inspired by Consumer Trends Global Cuisine & Bold Flavors Global / Spicy Flavors Refrigerated Smoothie bubble fruit get Unique “Charcuterie” Varieties Bubble Fruit Gel NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. iG Health & High Protein Bone Broth Protein Tomato
Slide 22: USA JOYBA
USA JOYBA JOYBA is poised to be the biggest U.S. beverage launch in 2024 22
Slide 23: USA 3Q – Foodservice
USA 3Q – Foodservice K12 Segment Expansion into new school districts and states Providing nutritious fruit 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 fru
Slide 24: USA Inventory
USA Inventory FY2025 Projected Inventory Declines 24
Slide 25: DMPL ex-DMFI 3Q FY2024
DMPL ex-DMFI 3Q FY2024 ▪ Sales of US$183m, down 10% due to lower exports of packaged pineapple because of lower supply as a result of unfavorable weather conditions. Pineapple supply is expected to show some improvement in 4Q. ▪ Philippine sales of US$107m, -4% in peso terms and -2% in US dollar ter
Slide 26: Philippines – Market Shares
Philippines – Market Shares 95.8% +0.6pt 75.4% +1.8pts 39.1% -1.7pts Packaged Pineapple (#1) Canned Mixed Fruit (#1) RTD Juices ex foil pouches (#1) Category: +0.3 % Category: -15.2% Category: +13.4 % 84.4% +0.2pt 41.3% +1.7pts 13.1% -2.7pts Drinkable Yogurt, DM Vinamilk + Mr. Milk (#2) Tomato Sauce
Slide 27: Philippines – Fruit
Philippines – Fruit NEW Del Monte Fiesta Cocktail Christmas thematic NEW Pineapple Noche Buena dish education • Giving a new purpose to preparing fruit salad during • Teaching moms to elevate their Christmas the holidays : creating a tradition of manifesting specialties with pineapple good fortune A
Slide 28: Philippines – Culinary
Philippines – Culinary Value bundles for more red dishes Del Monte Spaghetti Sauce Tactical Christmas Campaign: this holiday cooking season Exciting ways to prepare spaghetti for an extra special family celebration Digital PR Campaign In-store thematic tactical displays and shelf take-over 28
Slide 29: Philippines – Beverage
Philippines – Beverage Del Monte Juices “Give In To Goodness” Campaign Fit ‘n Right “Boost Your Passions” Digital Campaign Retail Activations Influencer Activation Anne Curtis' Holiday Organic Posts Luzon Sampling - 35 Stores 3 Macro KOLs - 2.5M organic views 7-Eleven Trade Show 14 Macro KOLs - 900K
Slide 30: Philippines – Innovation
Philippines – Innovation MR. MILK Big ‘Back-to-School’ Campaign NEW MR. MILK BLUEBERRY Launch • Owning kids’ school lunchbox occasion • Launch of the 2nd top flavor in the yogurt milk drink category In-store Back-to-School Program Barangay Distribution & & School Activations Activations NEW DEL MONT
Slide 31: Philippines – Foodservice and Convenience
Philippines – Foodservice and Convenience Positive outlook for Foodservice as Convenience business yet to recover vs pre- momentum continues pandemic in line with the CVS Industry in PH ▪ Revenue +13% vs prior year quarter, +7% vs pre- ▪ Revenue +3% vs prior year quarter due to higher pandemic. volu
Slide 32: S&W Packaged – Hong Kong
S&W Packaged – Hong Kong ▪ McDonald’s Hong Kong and McDonald’s China launched Chinese New Year promotions featuring ▪ S&W Pineapple Slices and S&W Fiesta Fruit Cocktail ▪ The special promotions covered more than 5,000 McDonald’s stores in China and more than 250 stores in Hong Kong Pineapple Shrimp
Slide 33: S&W Fresh – China
S&W Fresh – China S&W celebrated the 2024 Chinese New Year in China with in-store promotions and roadshows Roadshow for Chinese New Year with S&W Sweet 16 Fresh Pineapple at RT-Mart, Guangdong, China S&W Deluxe Fresh Pineapple with special CNY tags and gift boxes displayed in supermarkets. 33
Slide 34: S&W - Fresh Market Share
S&W - Fresh Market Share • Our North Asia market share increased to 38% behind increased supply and sales/ marketing initiatives • China at solid #1 in CY 2023 • Korea decreased from 38% in CY 2022 to 32% in CY 2023 due to lower supply allocation • Japan increased to 19% with improved demand vs last
Slide 35: Sustainability
Sustainability Best Employer 2024 EPR Law Compliance Mangrove Project Renewable Energy Del Monte was Recycled 20% of DMPI employee DMPI‘s 2.0MW solar recognized as one of DMPI’s post- volunteers from the energy project for the country’s Best consumer plastic Cannery and the Cannery is Employers for
Slide 36: Sustainability
Sustainability Science Based Targets Initiative (SBTi) Community Giving DMFI submitted its carbon reduction targets A group of our employees from Pittsburgh to SBTi for validation. These targets, once volunteered at the Women’s Center & validated, will align our 2030 and 2050 net- Shelter of greater
Slide 37: Outlook
Outlook ▪ Expects to deliver improved branded revenue growth in FY2024 ▪ In the US, we are focused on increasing market share by executing a multi- faceted strategy including accelerating innovation, recapturing margins and growing contribution from under-penetrated channels ▪ In Asia, increasing pr