Universal Robina Corp. · PSE:URC
Universal Robina — H1 2023 Earnings Presentation
17 slides from Universal Robina's earnings presentation, Aug 4, 2023
Slide 1: 1H CY2023 Unaudited Results Investor Briefing
1H CY2023 Unaudited Results Investor Briefing August 4, 2023 Irwin C. Lee Pancho M. Del Mundo Jose Miguel T. Manalang President and CEO Chief Investments, Strategy, and Corporate Strategy and Investor Relations Director Services Officer
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Universal Robina Corporation (URC) and plans and objectives of the management of URC. Such forward looking statements involve known and unknown risk
Slide 3: Executive Summary
Executive Summary • Momentum continues into Q2 2023 with Net Sales hitting Php38.8 billion, up 10% vs. same period last year, despite the higher base from last year’s reopening dividend. 1H Net Sales at Php78.6 billion, up 11% vs. SPLY. • Operating Income outpacing topline growth, reaching Php3.9 bi
Slide 4: Total URC
Total URC SALES EBIT NET INCOME In billion pesos In billion pesos In billion pesos +11% +16% +8% +10% 71.1 78.6 +18% 8.6 +18% 7.4 6.5 7.0 35.3 38.8 3.3 3.9 3.4 2.9 2022 2023 2022 2023 2022 2023 Q2 1H Q2 1H Q2 1H • Total revenue for the 2nd quarter • Profits continued to grow faster • 2nd quarter net
Slide 5: Key commodities still elevated
Key commodities still elevated Coffee, Robusta (USD/Kg) +19% vs Q2 2022 +11% vs 2022 peak Jan22 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan23 Feb Mar Apr May Jun Potato (Eur/Kg) Crude Oil, Dated Brent (USD/Barrel) +72% vs Q2 2022 +54% vs 2022 peak Jan22 Feb Mar Apr May Nov Dec Jan23 Feb Mar Apr
Slide 6: Mixed view on consumers as reopening dividend tapers off, but spending remains resilient
Mixed view on consumers as reopening dividend tapers off, but spending remains resilient Quarterly Inflation Trend (2022 – 2023) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Philippines Malaysia Vietnam Thailand Indonesia Sources: Inquirer, Philippine News Agency, Reuters, Kantar, Bloomberg, Chan
Slide 7: BCF Philippines
BCF PHILIPPINES Growth across categories into the 2nd quarter +7% +7% • Sales growth aided by impact of pricing initiatives 35.1 37.4 SALES in Apr 2023 In billion pesos 18.0 19.3 • Order fill rates continue to improve, hitting over 80% in June 2022 2023 Q2 1H +5% • Operating income growth for the 2n
Slide 8: BCF International
BCF INTERNATIONAL Profits continue to outpace revenue growth +7% • URCI maintains growth for the period, led by Vietnam, Malaysia, and Myanmar Lorem ipsum +1% 16.8 SALES 15.6 • Early results on product price-point reengineering, In billion pesos 7.8 7.9 with Indonesia returning to growth trajectory
Slide 9: AIC
AIC Strong growth driven by Sugar and Feeds +23% • SURE posted growth on higher selling prices amidst tight supply • AIG’s double digit growth propelled by the robust +26% SALES 23.8 performance of the feeds division 19.4 In billion pesos 11.4 • Flour topline steady on higher selling prices 9.0 Q2 v
Slide 10: Acquisition of Central Azucarera Don Pedro Inc. (CADPI) assets
Acquisition of Central Azucarera Don Pedro Inc. (CADPI) assets • Acquired idle assets valued at Php ~900M • The purchased sugar milling machinery and equipment of CADPI increases Balayan’s sugar mill production efficiency and capacity (from 5,000 tons cane/day to 8,000 tons cane/day) ensuring sugar
Slide 11: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash and Financial Debt Gearing Ratio In billion pesos 0.20 0.18 21.7 21.1 14.2 12.5 1H 2022 1H 2023 1H 2022 1H 2023 Cash + Financial Assets at FVPL + AFS Financial Debt Cash Position In billion pesos • Balance sheet continues to be healthy with a gearing 11.7 5.5 ratio a
Slide 12: Executive Summary
Executive Summary • Momentum continues into Q2 2023 with Net Sales hitting Php38.8 billion, up 10% vs. same period last year, despite the higher base from last year’s reopening dividend. 1H Net Sales at Php78.6 billion, up 11% vs. SPLY. • Operating Income outpacing topline growth, reaching Php3.9 bi
Slide 13: Thank you!
yy Thank you!
Slide 14: Income Statement
Income Statement 1H 2023 1H 2022 (Php Millions) YoY (Unaudited) (Unaudited) NET SALES Lorem ipsum 78,629 71,108 11% Cost of Sales 57,711 52,140 11% GROSS PROFIT 20,918 18,968 10% Operating Expense -12,358 -11,590 7% OPERATING INCOME 8,560 7,378 16% Equity in net income of JVs -33 -334 Finance cost –
Slide 15: Balance Sheet
Balance Sheet 1H 2023 CY 2022 (Php Millions) (Unaudited) (Audited) Lorem ipsum Cash & cash equivalents 12,465 14,191 (including Financial assets at FVPL and FVOCI) Other current assets 76,362 66,069 Property, plant, and equipment 61,666 60,117 Other noncurrent assets 27,100 29,576 TOTAL ASSETS 177,5
Slide 16: Divisional Financials
Divisional Financials SALES EBIT EBIT MARGIN (Php Millions) 1H 2023 1H 2022 YoY 1H 2023 1H 2022 YoY 1H 2023 1H 2022 bps Branded Consumer Foods 54,827 51,727 6% 6,092 5,661 8% 11.1% 10.9% 17 Philippines 37,372 35,081 7% 4,496 4,289 5% 12.0% 12.2% (20) International 16,761 15,632 7% 1,657 1,283 29% 9.
Slide 17: Market Shares
Market Shares Philippines Thailand MARKET MARKET CATEGORY #1 #2 #3 CATEGORY #1 #2 #3 SHARE SHARE Snacks 34.8% URC 24.9% 5.7% Lorem ipsum Biscuits (new) 16.0% URC 13.9% 7.7% Candies 25.3% URC 14.4% 13.5% Wafers 20.0% 23.7% URC 8.6% Chocolates and 22.3% URC 13.9% 7.9% Coated Wafers Vietnam Biscuits 15