Emperador Inc. · PSE:EMI
Emperador — 9M2022 Earnings Presentation
29 slides from Emperador's earnings presentation, Nov 4, 2022
Slide 1: SEC Form 17-C cover sheet
A 2 0 0 1 1 7 5 9 5 S.E.C. Registration Number E M P E R A D O R I N C . (Company’s Full Name) 7 / F 1 8 8 0 E A S T W O O D A V E N U E E A S T W O O D C I T Y C Y B E R P A R K 1 8 8 E . R O D R I G U E Z J R . A V E . B A G U M B A Y A N Q U E Z O N C I T Y (Business Address: No. Street City/ Tow
Slide 2: SEC Form 17-C Current Report
SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-C CURRENT REPORT UNDER SECTION 17 OF THE SECURITIES REGULATION CODE AND SRC RULE 17.2(c) THEREUNDER 1. 14 November 2022 Date of Report (Date of earliest event reported) 2. SEC Identification Number A200117595 3. BIR Tax Identification No. 214-815-715-00
Slide 3: Emperador Inc. Investor Update (9M2022)
EMPERADOR INC. Investor Update (9M2022) November 2022
Slide 4: Company Background, 9M2022 Financials, Outlook
1 Company Background 2 9M2022 Financials 3 Outlook
Slide 5: Emperador Inc is a leading global integrated manufacturer, bottler and distributor
Emperador Inc is a leading global integrated manufacturer, bottler and distributor of brandy, Scotch whisky and other alcoholic beverages. ▪ A leading, high growth whisky and brandy company with a truly globally recognized portfolio of brands distributed to 100+ countries and world leading market po
Slide 6: Emperador Inc. First Phase of Growth
Emperador Inc. First Phase of Growth First phase of growth was in the brandy category in the Philippines 1979-2013 ▪ Emperador dominated the Philippine brandy market and is the largest spirits company in the Philippines ▪ Emperador became the largest brandy company in the world ▪ Emperador listed on
Slide 7: Emperador Inc. Diversifies its Business
Emperador Inc. Diversifies its Business Emperador added world-renowned whiskies and brandies to its portfolio 2014-2017 ▪ Acquisition of Whyte and Mackay increased Emperador’s product offering to include whiskies as well as expand its geographic reach ▪ Acquisition of Bodegas Fundador cemented Emper
Slide 8: Emperador Inc. Second Phase of Growth
Emperador Inc. Second Phase of Growth Emperador is embarking on its second phase of growth 2022 ▪ Emperador completed a secondary listing on the Singapore Exchange, further amplifying its status as a global company ▪ Full-force implementation of premiumization and internationalization strategy Now,
Slide 9: Line up of iconic whiskies and brandies
Emperador Inc. now has an impressive line up of iconic and world-renowned whiskies and brandies Scotch whisky Brandy Luxury Super Premium Premium Standard Accessible 7
Slide 10: Company Background, 9M2022 Financials, Outlook
1 Company Background 2 9M2022 Financials 3 Outlook
Slide 11: 9M2022 Highlights
9M2022 Financials – Highlights Php 26.9 Php 7.2 billion billion Php 42.6 Brandy Revenue Net Profit* +8% YoY -1% YoY billion Php 15.8 63% Brandy Revenue billion 37% Whisky +11% YoY Whisky Revenue Revenue +17% YoY Breakdown * Income attributable to parent
Slide 12: 9M2022 Financials
9M2022 Financials Continued strong revenue growth for whole group 3Q22 YoY 9M22 9M21 YoY Commentary Revenue 14,585 +12% 42,639 38,357 11.2% • Strong revenue growth Gross profit 4,690 13,126 13,889 +8.5% -5.5% • Continued growth for both brandy (Margin) (31.4%) (31.8%) (36.9%) and whisky segment EBIT
Slide 13: 9M2022 Financials
9M2022 Financials Continued strong revenue growth for whole group; GP down due to inflation 3Q22 YoY 9M22 9M21 YoY Commentary Revenue 14,585 +12% 42,639 38,357 11.2% Gross profit 4,690 13,126 13,889 • 3Q YoY gross profit up due to +8.5% -5.5% product mix (Margin) (31.4%) (31.8%) (36.9%) • 9M YoY dow
Slide 14: 9M2022 Financials
9M2022 Financials Continued strong revenue growth for whole group; EBITDA down due to higher opex 3Q22 YoY 9M22 9M21 YoY Commentary Revenue 14,585 +12% 42,639 38,357 11.2% • EBITDA margin down due to Gross profit 4,690 13,126 13,889 increased opex +8.5% -5.5% (Margin) (31.4%) (31.8%) (36.9%) • Incre
Slide 15: 9M2022 Financials
9M2022 Financials Continued strong revenue growth for whole group; net profit down due to costs 3Q22 YoY 9M22 9M21 YoY Commentary Revenue 14,585 +12% 42,639 38,357 11.2% Gross profit 4,690 13,126 13,889 • Net profit down as costs and +8.5% -5.5% expenses increased (Margin) (31.4%) (31.8%) (36.9%) •
Slide 16: 9M2022 Financials
9M2022 Financials Revenues continue to grow; net profit stable despite headwinds and cost challenges Revenues Gross Profit EBITDA Net Profit 15,000 29% 30.0% 18.9% 33.6% 36.9% 16.7% 13.4% 16.9% 31.4% 31.8% 25.3% 23.9% 13,000 25.0% 42,639 20.1% 7,259 7,185 11,114 38,357 13,889 11,000 10,191 20.0% 13,
Slide 17: 9M2022 Financials – Brandy Segment
9M2022 Financials – Brandy Segment Revenues continue to increase by high single digit, in line with target 3Q22 YoY 9M22 9M21 YoY Commentary Revenue 8,988 5.8% 26,885 24,840 8.2% Gross profit 2,432 6,997 8,523 -3.4% -17.9% (Margin) (25.4%) (26.1%) (33.9%) • Brandy revenue up EBITDA 1,410 5,551 7,535
Slide 18: 9M2022 Financials – Brandy Segment
9M2022 Financials – Brandy Segment Increase in revenue; gross margin down due to higher COGS 3Q22 YoY 9M22 9M21 YoY Commentary Revenue 8,988 5.8% 26,885 24,840 8.2% • Brandy gross profit down due to higher COGS Gross profit 2,432 6,997 8,523 -3.4% -17.9% (Margin) (25.4%) (26.1%) (33.9%) • Impacted b
Slide 19: 9M2022 Financials – Brandy Segment
9M2022 Financials – Brandy Segment Increase in revenue; EBITDA down on higher opex 3Q22 YoY 9M22 9M21 YoY Commentary Revenue 8,988 5.8% 26,885 24,840 8.2% • Brandy EBITDA down due to higher opex Gross profit 2,432 6,997 8,523 -3.4% -17.9% (Margin) (25.4%) (26.1%) (33.9%) • Higher opex on higher adve
Slide 20: 9M2022 Financials – Brandy Segment
9M2022 Financials – Brandy Segment Increase in revenue; net profit dampened by increasing costs 3Q22 YoY 9M22 9M21 YoY Commentary Revenue 8,988 5.8% 26,885 24,840 8.2% Gross profit 2,432 6,997 8,523 -3.4% -17.9% (Margin) (25.4%) (26.1%) (33.9%) • Brandy net profit down due to higher cost and expense
Slide 21: 9M2022 Financials – Whisky Segment
9M2022 Financials – Whisky Segment Whisky segment continues to record stellar top and bottom line performance 3Q22 YoY 9M22 9M21 YoY Commentary Revenue 5,597 23.6% 15,754 13,517 16.6% Gross profit 2,257 6,130 5,366 • Whisky’s robust revenues continue to 25% 14.2% grow (Margin) (41.3%) (40.8%) (40.4%
Slide 22: 9M2022 Financials – Whisky Segment
9M2022 Financials – Whisky Segment Gross margin stable despite inflation due to higher selling prices 3Q22 YoY 9M22 9M21 YoY Commentary Revenue 5,597 23.6% 15,754 13,517 16.6% Gross profit 2,257 6,130 5,366 • Gross margins up both 3Q and 9M 25% 14.2% YoY (Margin) (41.3%) (40.8%) (40.4%) EBITDA 1,514
Slide 23: 9M2022 Financials – Whisky Segment
9M2022 Financials – Whisky Segment Strong EBITDA growth despite increase in opex 3Q22 YoY 9M22 9M21 YoY Commentary Revenue 5,597 23.6% 15,754 13,517 16.6% Gross profit 2,257 6,130 5,366 • Higher EBITDA for both 3Q and 9M 25% 14.2% YoY (Margin) (41.3%) (40.8%) (40.4%) EBITDA 1,514 4,640 3,579 • EBITD
Slide 24: 9M2022 Financials – Whisky Segment
9M2022 Financials – Whisky Segment Whisky segment continues to record stellar top and bottom line performance 3Q22 YoY 9M22 9M21 YoY Commentary Revenue 5,597 23.6% 15,754 13,517 16.6% Gross profit 2,257 6,130 5,366 25% 14.2% (Margin) (41.3%) (40.8%) (40.4%) • Higher net margins for both 3Q and EBITD
Slide 25: Summary
Summary Whisky Brandy Total EMI • Good sales performance but net • Strong revenues and net • Sales show no signs of profit affected by higher COGS and profit despite unfavorable expenses slowing down as both brandy global inflationary and whisky continue to record environment • 9M revenue higher by
Slide 26: 9M2022 Financials – Cash Position
9M2022 Financials – Cash Position Maintained strong cash position Net Debt to Cash Debt Net Debt Commentary Equity 9M22 12,539 23,344 10,805 12% Further improvement in net gearing resulting from higher cash and lower net debt 2021 9,334 24,841 15,508 20% 12,539 9,334 10,191 -2987 -1,133 -709 -2,157
Slide 27: Company Background, 9M2022 Financials, Outlook
1 Company Background 2 9M2022 Financials 3 Outlook
Slide 28: CPI Strategy
CPI Strategy Continue with CPI strategy as diversification through CPI clearly demonstrated its importance in stabilizing earnings Contemporize Premiumize Internationalize ▪ Innovate and launch products ▪ Single malt focus ▪ Key focus on China and North tailored to specific tastes America as these a
Slide 29: Outlook
Outlook Taking up price to cover higher costs; can expect higher margins Whisky Brandy • Have implemented a 10% (on • Have announced price average) price increase for increase of 5% effective Dec 2023 1 • Can expect higher margins • Can expect better margins