Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — FY2023 Earnings Presentation
20 slides from Del Monte Pacific's earnings presentation, Aug 29, 2023
Slide 1: Del Monte Pacific FY2023 Results
Del Monte Pacific FY2023 Results 29 August 2023
Slide 2: Contents
Contents ▪ Summary ▪ FY2023 Results ▪ Dividends ▪ Outlook 2
Slide 3: FY2023 Highlights
FY2023 Highlights • DMPL generated record sales of US$2.4bn in FY2023, up 3% from prior year on higher sales in the U.S. and international markets • Market leadership maintained in nearly all core categories in the U.S. and Philippines, and for fresh pineapple in China • However, higher costs amidst
Slide 4: FY2023 Results – Reported Basis
FY2023 Results – Reported Basis In US$m FY2022 FY2023 Chg (%) Comments Turnover 2,342.1 2,421.3 +3.4 Higher sales in USA and international markets Due to higher raw material, packaging, manufacturing and logistics costs plus unfavorable sales mix. DMPL ex-DMFI Gross profit 622.7 607.0 -2.5 also had
Slide 5: Del Monte Foods USA FY2023
Del Monte Foods USA FY2023 • Sales of US$1.7bn or 72% of Group sales, up 5% driven by strong branded retail sales, higher pricing, distribution gains and incremental sales from Kitchen Basics • DMFI’s expansion efforts: ✓ Acquired the brand and inventory of Kitchen Basics for US$99m ✓ Strong growth
Slide 6: USA – Market Shares for 1Q FY2024
USA – Market Shares for 1Q FY2024 22.6% +1.2pts 24.5% +3.8pts 29.9% +5.3pts Canned Vegetable (#1) Canned Fruit (#1) Fruit Cup Snacks (#2) 6.3% +0.6pt 7.5% -0.7pt Canned Tomato (#3) Broth (#2) Source for market shares: Nielsen RMS / Scantrack DMFI Custom DBs, Eq Vol share, Total xAOC, Latest 3M endin
Slide 7: DMPL ex-DMFI FY2023
DMPL ex-DMFI FY2023 ▪ Sales of US$765m, up 2% on International sales of U$330m, +12%; Philippine sales of US$362m +7% in peso terms but down 4% in USD terms. ✓ Peso sales rose driven by the combined impact of compelling communication campaigns, low-cash outlay SKUs and multipacks value offers to hel
Slide 8: Philippines – Foodservice and Convenience
Food Service & Convenience Stores Philippines – Foodservice and Convenience Opening of Foodservice Institutions accelerated growth in FY2023 • Volume up 14% vs prior year. Volume now at • Volume up 16% vs prior year. Volume now 95% of pre-pandemic. at 77% of pre-pandemic. • Sales up 18% vs prior yea
Slide 9: Philippines – Market Shares
Philippines – Market Shares 96.4% +2.0pts 77.3% +3.8pts 39.3% +1.5pts Packaged Pineapple (#1) Canned Mixed Fruit (#1) RTD Juices ex foil pouches (#1) 85.4% +0.8pt 42.6% +0.3pt 13.0% -6.0pts Tomato Sauce (#1) Spaghetti Sauce (#1) Drinkable Yogurt, DM Vinamilk + Mr. Milk (#2) ( Source for Volume marke
Slide 10: Fresh – Market Shares
Fresh – Market Shares S&W Fresh North Asia Market Share CY 2021 - YTD June Actuals 60% China, 54% 50% 40% North Asia , 38% Korea, 32% 30% 20% Japan, 18% 10% 0% CY'21 CY'22 YTD CY'23 10
Slide 11: Higher Loans in FY2023
Higher Loans in FY2023 Debt level increased by US$706m from April 2022 to April 2023 due to: US$ m Additional loans from refinancing of DMFI’s High Yield Notes 47.6 Preference Shares Redemption 100.0* New Term Loan costs 13.4 Acquisition of Kitchen Basics 101.0 Increase in DMFI’s Inventory 390.8 *Th
Slide 12: Dividend
Dividend The Board approved a final dividend of 0.13 US cent (US$0.0013) per share representing 15% of FY2023 net profit For the fiscal year ended 30 April 2022 2023 Name of dividend Final Ordinary Final Ordinary Type of dividend Cash Cash Rate of dividend US$0.0170 per US$0.0013 per ordinary share
Slide 13: Outlook
Outlook • The global environment remains unstable with certain cost pressures and consumers becoming more cautious with their spending • Remain vigilant in managing our operating expenses which include: ✓ packaging materials optimization; ✓ power and fuel initiatives; ✓ investments to improve effici
Slide 14: Appendix
Appendix 14
Slide 15: FY2023 Turnover and Operating Profit Analysis
FY2023 Turnover and Operating Profit Analysis Sales Operating 2.0% Profit 2.8% 26.2% Americas 32.2% 71.8% Asia Pacific 65.0% Europe Sales growth Comments Americas +4.4% ▪ Higher branded retail sales which grew by 8%. Branded retail accounted for 75% of DMFI’s sales ▪ Incremental sales of US$35m from
Slide 16: USA – Addressing Key Trends
USA – Addressing Key Trends New products sales reached US$134m or 7.6% of DMFI’s sales 16
Slide 17: USA – Channel Diversification
USA – Channel Diversification 1Calendar Year 2022 17
Slide 18: Philippines – Innovation
Philippines – Innovation Innovation now accounts for 6.5% of total Philippine Sales Combined addressable market of these products is US$3.5bn Potato Crisp Flavor Range: Original, Spicy; New in FY2023: Cheese, BBQ, 20g Del Monte Vinamilk Range Flavor Range: Fresh Milk; IQ Smart Chocolate, Vanilla, St
Slide 19: International – Innovation
International – Innovation Innovation now accounts for 13% of Total International Sales Total sales potential of these products is US$100m NICE FRUIT Frozen Snacks Japan Middle East Japan Europe CANADA US Saudi Singapore China Hongkong 7-11 McDonald’s 7-Eleven Lamex/KFC McDonald’s Del Monte Arabia P
Slide 20: Leverage
Leverage As of 30 April 2023 Total Debt US$ 2.27bn DMFI US$ 1.17bn DMPL ex-DMFI US$ 1.10bn Loan mix by currency 86%* US$ 14% Peso Loan mix by tenor 56% short term 44% long term Loan mix by rate 87% floating 13% fixed Average interest rate for FY2023 Group 6.61% DMFI 8.41% DMPL ex-DMFI 4.84% Interest