Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Q2 FY2025 Earnings Presentation
40 slides from Del Monte Pacific's earnings presentation, Dec 11, 2024
Slide 1: Del Monte Pacific Ltd. 2Q FY2025 Results
Del Monte Pacific Ltd. 2Q FY2025 Results 11 December 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 • 2Q FY2025 Results (1 August to 31 October 2024) • 1H FY2025 Results (1 May to 31 October 2024) • Market Updates • Sustainability • Outlook 3
Slide 4: Highlights
HIGHLIGHTS Second Quarter FY2025 • Del Monte Pacific Limited (DMPL) Group sales grew by 4% to US$694m • Subsidiary Del Monte Philippines, Inc. (DMPI) excelled with a 20% rise in sales to US$208m, driven by an impressive 43% growth in international sales due to robust exports of fresh and packaged pi
Slide 5: Outlook
OUTLOOK In FY2025, the Group’s main priorities will be as follows: 1) Plans have commenced and are continuing for the selective sale of assets in the U.S. and capital raising efforts are being worked on. The Group intends to utilize the proceeds from these transactions and lower inventory levels to
Slide 6: Outlook
OUTLOOK • The Group continues to relentlessly pursue all these initiatives. DMPL’s financial outlook is based on gradual improvement in FY2026 and continuing into FY2027. • Under current conditions, and barring unforeseen circumstances, the Group expects to incur a net loss in FY2025. • The Group wi
Slide 7: 2Q FY2025 Results
2Q FY2025 RESULTS 2Q 2Q In US$m Chg (%) Comments FY2025 FY2024 Strong fresh and packaged pineapple exports and Turnover 694.0 667.1 +4.0 higher Philippine sales Higher gross profit of Del Monte Philippines which Gross profit 137.5 135.5 +1.5 offset DMFI Higher cost in DMFI from unfavorable fixed cos
Slide 8: 2Q FY2025 Results by region
2Q FY2025 RESULTS 3% Americas 14% 15% Philippines 69% Asia Pacific ex-Philippines Europe Sales growth Comments Americas -3% ▪ Sales decreased driven by changing sales mix and delayed timing of holiday shipments Philippines +5% ▪ Key categories of packaged fruit and beverage performed better (+6% in
Slide 9: 1H FY2025 Results
1H FY2025 RESULTS 1H 1H In US$m Chg (%) Comments FY2025 FY2024 Strong fresh and packaged pineapple exports and Turnover 1,230.9 1,183.8 +4.0 higher Philippine sales Higher gross profit of Del Monte Philippines but Gross profit 225.1 243.8 -7.7 not enough to offset DMFI’s decline Higher cost in DMFI
Slide 10: 1H FY2025 Results by region
1H FY2025 RESULTS 2% 12% Americas 16% Philippines 70% Asia Pacific ex-Philippines Europe Sales growth Comments Americas -2% ▪ Sales decreased driven by slowdown in healthy snacking category sales and changing sales mix ▪ Higher Joyba and broth and stock sales Asia Pacific +32% ▪ Higher exports of fr
Slide 11: Market Updates
MARKET UPDATES 11
Slide 12: Del Monte Philippines 2Q FY2025
DEL MONTE PHILIPPINES 2Q FY2025 ▪ Sales of US$207.7m, +20% with Philippine sales of US$113.5m, +6% in peso terms ✓ Led by double-digit growth in beverage and packaged fruit ✓ Beverage growth anchored on the 100% Pineapple Juice functional portfolio, with impactful brand campaign that stimulated dail
Slide 13: Philippines Market Shares
PHILIPPINES MARKET SHARES Leadership market shares with notable increase in Beverage Category consumption growing 41.9% +3.3pts 78.7% +1.2pts 94.4% -1.1pts RTD Juices ex foil pouches (#1) Canned Mixed Fruit (#1) Packaged Pineapple (#1) Category: +4.3% Category: +17.3% Category: +6.7% 84.9% +0.9pt 41
Slide 14: Philippines - Fruits
PHILIPPINES - FRUITS Mixed Fruits Canned Pineapple • Sustained placements of Fiesta Fruit Cocktail’s “Spill the • Launched “Everyday Piña-Sarap Meals” Fruity” campaign (educating consumers on trending dessert (pineapple-delicious) digital campaign, applications beyond the traditional and seasonal fr
Slide 15: Philippines - Beverage
PHILIPPINES - BEVERAGE 1. Launched a new campaign for Del Monte 2. Advocating Heart Health with 100% Pineapple Juice Fiber Enriched Del Monte Heart Smart ✓ “Nightly Cleansing Habit” ✓ Educating on the early detection and campaign which encouraged a prevention of heart disease through daily routine o
Slide 16: Philippines - Culinary
PHILIPPINES - CULINARY Tomato Sauce - Spaghetti Sauce - New Campaign and Key Opinion Leader New and Improved Carbonara variant and (KOL) support to push frequency refresh of Today’s Spaghetti Sauce KOL & PR-led campaign to drive excitement for Extra Creamy Carbonara Digital + Radio Campaign with reg
Slide 17: Philippines - Culinary: Kitchenomics 40 years
PHILIPPINES - CULINARY ee Nap =~. DEL MONTE KITCHENOMICS CELEBRATES 40 p 40\YEARS OF COOKING TOGETHER : S, with stories, recipes, and activities for Kitchenomics Club members KA-KITCH a LEGACY, ~ CHICKEN ‘ “SALPICAO, | LIVE COOKING DEMOS MEET & COOK WITH CHEF RV
Slide 18: Philippines - Mr. Milk and Potato Crisp
PHILIPPINES – MR. MILK AND POTATO CRISP Mr. Milk Potato Crisp • Department of Education approved Mr. Milk to be brought • Food Influencer campaign as snacks and to be consumed in schools • Sampling drives • Supported with ‘Back-to-School Lunchbox’ campaign, e-commerce live selling 18
Slide 19: Philippines - Foodservice & Convenience
PHILIPPINES – FOODSERVICE & CONVENIENCE Foodservice growth momentum continues Convenience growth driven by successful ▪ 2Q sales grew by 18% vs prior year quarter promotions and expansion of portfolio ▪ 18,816 outlets now open: Key Accounts at 4,334 ▪ 2Q sales improved by 25% vs prior year quarter a
Slide 20: International - Fresh Market Share
INTERNATIONAL - FRESH MARKET SHARE Leading Market Shares for Fresh Pineapple • North Asia market share increased to 49% from 38% last year, behind strong market demand and improved supply. • #1 position maintained in China for YTD Oct 2024. • Korea market share position improved to #1 gaining a stro
Slide 21: S&W Fresh
S&W FRESH S&W participated in the 17th Asia Fruit Logistica held in Hong Kong from 4-6 September 2024. The expo was joined by 760 exhibitors from over 40 countries, and was attended by more than 13,000 trade visitors. S&W, the leader in Asia’s fresh pineapple industry, promoted S&W Deluxe Fresh Pine
Slide 22: S&W Fresh - China
S&W FRESH - CHINA S&W and Goodfarmer Celebrate its 10-Year Partnership! S&W Fresh and Goodfarmer celebrated its 10 years of fruitful and sweet partnership in Shanghai China on 20 September 2024. The celebration revolved around its theme “Joint Efforts, Shared Glory” emphasizing the strong teamwork a
Slide 23: S&W Fresh - China
S&W FRESH - CHINA Tea Shop Chapanda Launched New Drinks with S&W Fresh Pineapple! China’s famous tea shop Chapanda launched 3 new drinks featuring S&W Sweet 16 Fresh Pineapple in over 1,000 stores starting 23 August. New exciting flavors include Pineapple & Passion Fruit Tea, Pineapple & Lemon Tea,
Slide 24: Del Monte Foods USA 2Q FY2025
DEL MONTE FOODS USA 2Q FY2025 ▪ Sales of US$480m or 69% of Group sales; sales decreased by 3% driven by changing sales mix and delayed timing of holiday shipments ▪ Del Monte’s foodservice sales channel, e-commerce business and Latin America business posted the most growth in 2Q ▪ New spicy Canned V
Slide 25: Del Monte Foods USA Executive Summary 2Q FY2025
DEL MONTE FOODS USA EXECUTIVE SUMMARY 2Q FY2025 2Q Objectives 2Q Results • Secure holiday merchandising at largest • Holiday sales and consumption trending customers ahead of forecast • Accelerate selldown of excess inventory • Inventory reduction ahead of plan US$250m vs. prior year • Manage and ex
Slide 26: USA Category Trends
USA CATEGORY TRENDS Category Trends continue to stabilize thru November Monthly view of Del Monte Foods U.S. Category Volume Trends Source: Circana POS, Total US MULO+, Latest monthly periods ending 1 December 2024 26
Slide 27: Value Seeking
VALUE SEEKING Economic Pressures Continue to drive Consumers to seek Value Source: Circana, Total US MULO+, 52 W/E 1 December 2024. Grocery includes all Center-Store Food & Beverage Categories 27
Slide 28: Holiday Support
HOLIDAY SUPPORT Support on Del Monte Vegetables at Top U.S. Customers 28
Slide 29: Record Vegetable Share
RECORD VEGETABLE SHARE Del Monte achieved Record Vegetable Market Share in November Source: Circana, Total US MULO+, data ending 1 December 2024 29
Slide 30: USA Market Shares
USA MARKET SHARES 23.6% -0.1 pt 18.4% -2.1 pts 21.5% -4.0 pts Canned Vegetable (#1) Canned Fruit (#1) Fruit Cup Snacks (#2) Category: +0.8% Category: -1.8% Category: +0.6% 7.9% -1.2 pts 5.5% -0.7 pt Broth & Stock (#2) Canned Tomato (#3) Category: +2.3% Category: +0.5% Source for market shares: Circa
Slide 31: USA Market Share Growth Since FY2020
USA MARKET SHARE GROWTH SINCE FY2020 Del Monte has Gained nearly 3 Pts of EQ Share since FY2020 31
Slide 32: Increasing Store Count
INCREASING STORE COUNT Del Monte is Growing Number of Stores Selling each year Source: Circana Custom Model, Total US MULO+, Legacy DMFI: Vegetables, Fruit, Broth, Tomato, CY 2020-2024 not all grocers listed for visual, BW shipment data 2019-2024, Instacart User Interface 32
Slide 33: Joyba
JOYBA JOYBA exceeding distribution goals, +35,000 stores now selling ◼ Joyba has surpassed 35,000 stores nationally, increasing 2.1x overall YoY ◼ Total Joyba distribution has hit 70% ACV in MULO+, achieving FY2025 target and making significant progress towards long-term target of 75% ◼ On track to
Slide 34: USA 2Q Marketing Highlights
USA 2Q MARKETING HIGHLIGHTS Chef Michael Symon & Contadina Year 3 Partnership Awareness drivers to retail through recipe partnerships -> Extending the season with Micro-Moments Gen Z and Young Millennial Influencers Joyba Introducing continued new success at occasions Walmart 34
Slide 35: USA 2Q Beyond Retail: Foodservice and LATAM Successes
USA 2Q BEYOND RETAIL: DRIVING FOODSERVICE AND LATAM SUCCESSES Foodservice LATAM Strong 2Q Growth Driven By 1H Wins Fruit Category New Go-to-Market Model in Mexico Great new distribution partner with sales and merchandising support Expansion of Distribution Model New business development across 10 co
Slide 36: Tomato Plant Sale / Co-Pack Key Benefits
TOMATO PLANT SALE/ CO-PACK KEY BENEFITS Hanford facility sale, subject to closing and requisite approvals, will drive cost reduction and significantly improve tomato gross margin 36
Slide 37: Sustainability
SUSTAINABILITY Renewable Energy Plastic Recycling Better Nutrition Reforestation • 4.0MW solar power • As of October, 38% of • Average reduction of • 50 DMPI volunteers system for the Rigid Plastic 25% on added sugar joined the Rubia plantation’s facilities (including PET and sodium for Sweet planti
Slide 38: Sustainability
SUSTAINABILITY Corporate Hero Partner of the Year Product Donations • Del Monte Foods was • The National Black Farmers • Donated over 2.3 million honored as Corporate Hero Association (NBFA) named kgs of products to by Alliance for a Healthier Del Monte Foods as Partner nonprofits at a value of Gene
Slide 39: Outlook
OUTLOOK In FY2025, the Group’s main priorities will be as follows: 1) Plans have commenced and are continuing for the selective sale of assets in the U.S. and capital raising efforts are being worked on. The Group intends to utilize the proceeds from these transactions and lower inventory levels to
Slide 40: Outlook
OUTLOOK • The Group continues to relentlessly pursue all these initiatives. DMPL’s financial outlook is based on gradual improvement in FY2026 and continuing into FY2027. • Under current conditions, and barring unforeseen circumstances, the Group expects to incur a net loss in FY2025. • The Group wi