Fresh Del Monte Produce, Inc. · NYSE:FDP
Fresh Del Monte Produce — Del Monte — Q3 2020 Earnings Presentation
37 slides from Fresh Del Monte Produce's earnings presentation, Mar 11, 2020
Slide 1: Del Monte Pacific 3Q FY2020 Results
T N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® D E L M O NT E PACIFIC 3Q F Y 2 0 2 0 R E S U L T S 11 March 2020 NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. ®
Slide 2: Disclaimer
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® 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 as
Slide 3: Contents
CONTENTS ▪ Summary ▪ 3Q FY2020 Results ▪ 9M FY2020 Results ▪ Market Updates ▪ Impact of COVID-19 ▪ Sustainability ▪ Outlook 3
Slide 4: Notes to the 3Q FY2020 Results
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® NOTES TO THE 3Q FY2020 RESULTS ▪ Third quarter is from 1 November 2019 to 31 January 2020. ▪ DMPL’s effective stake in DMFI is 89.4%, hence the non controlling interest line (NCI) in the P&L. Net income/(loss) is net o
Slide 5: 3Q FY2020 Highlights
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® 3Q FY2020 HIGHLIGHTS ▪ Higher sales across all key markets of USA, Philippines and S&W business in Asia ▪ Achieved EBITDA of US$56.9m, up 43%, operating profit of US$30.2m, up 25%, while net profit more than doubled to
Slide 6: Outlook
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® OUTLOOK ▪ Barring unforeseen circumstances, the DMPL Group is expected to remain profitable in FY2020 on a recurring basis (without one-offs). ▪ Major emphasis on responding to consumer trends through: ✓ Strengthening
Slide 7: DMPL 3Q FY2020 Group Results Summary
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® DMPL 3Q FY2020 GROUP RESULTS SUMMARY ▪ Sales of US$555.3m, +5% Sales % Change US +2 Philippines +11 (in peso terms +6) S&W +11 FieldFresh India (equity accounted) +4 (in rupee terms +3) All figures below without one-of
Slide 8: DMPL 3Q FY2020 One-Off Expense/(Income)
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® DMPL 3Q FY2020 ONE-OFF EXPENSE/(INCOME) In US$ m 3Q FY19 3Q FY20 Booked under Plant closures 0.1 0.2 CGS/G&A/Misc Expense Severance 1.4 0.4 G&A Expense Others (0.7) 0.0 G&A and Other expense/ (income) Gain due to the p
Slide 9: DMPL 3Q FY2020 Results – As Reported
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® DMPL 3Q FY2020 RESULTS – AS REPORTED 3Q 3Q In US$m Chg (%) Comments FY2019 FY2020 Turnover 528.7 555.3 +5.0 Higher USA, Philippines and S&W Asia sales Higher product cost mainly from metal packaging, and Gross profit 1
Slide 10: DMPL 3Q FY2020 Turnover Analysis
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® DMPL 3Q FY2020 TURNOVER ANALYSIS 2% 27% Americas 71% Asia Pacific Europe Americas +2.3% ▪ Higher private label sales ahead of discontinuation of certain product lines, as well as price increases Asia Pacific +9.9% ▪ Ph
Slide 11: DMPL 9M FY2020 Group Results Summary
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® DMPL 9M FY2020 GROUP RESULTS SUMMARY ▪ Sales of US$1.5bn, -2.1% Sales % Change US -7 Philippines +8 (in peso terms +5) S&W +12 FieldFresh India (equity accounted) +4 (in rupee terms +5) All figures below without one-of
Slide 12: DMPL 9M FY2020 One-Off Expense/(Income)
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® DMPL 9M FY2020 ONE-OFF EXPENSE/(INCOME) In US$ m 9M FY19 9M FY20 Booked under Plant closures 6.5 77.4 CGS/G&A/Misc Expense Seed operation (1.1) - Other Expense Severance 3.2 2.0 G&A Expense Others (0.7) 0.1 G&A and Oth
Slide 13: DMPL 9M FY2020 Results – As Reported
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® DMPL 9M FY2020 RESULTS – AS REPORTED 9M 9M In US$m Chg (%) Comments FY2019 FY2020 Turnover 1,522.2 1,489.9 -2.1 Higher Philippines and S&W Asia offset by lower US sales Price increase in the US and Philippines; impact
Slide 14: DMPL 9M FY2020 Turnover Analysis
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® DMPL 9M FY2020 TURNOVER ANALYSIS 2% 29% Americas 69% Asia Pacific Europe Americas -6.8% ▪ Impact of divestiture of the low-margin Sager business, in line with strategy ▪ Lower sales of low-margin non-branded businesses
Slide 15: Market Updates for 3Q FY2020
15 Market Updates for 3Q FY2020
Slide 16: USA
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® USA Market Share (#1) Market Share (#1) Market Share (#2) Market Share (#2) Canned Vegetable Canned Fruit Fruit Cup Snacks Canned Tomato ▪ Maintaining solid share across legacy categories, while expanding into perimete
Slide 17: Del Monte Foods USA 3Q Results
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® DEL MONTE FOODS USA 3Q RESULTS DMFI’s 3Q sales up 1.5% to US$391.8m ▪ Price increases from the last quarter of FY2019 ▪ Higher sales of private label ahead of the discontinuation of certain product lines DMFI gross mar
Slide 18: FY2020 Asset-Light Strategy
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® FY2020 ASSET-LIGHT STRATEGY ▪ On 19 November 2019, the Group announced the closure/sale of four plants in the USA ▪ DMFI’s Asset-Light Strategy has been a critical step in repositioning DMFI for the future ▪ Execution
Slide 19: USA – Product of the Year
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® USA – PRODUCT OF THE YEAR Del Monte Foods Wins 2020 Product of the Year Award in Three Categories • Winners determined by the votes of 40,000 consumers in a survey conducted by Kantar (World’s largest consumer-voted aw
Slide 20: USA – Holiday Wins
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® USA – HOLIDAY WINS Del Monte Vegetable College Inn Digital Banners In-Store Displays In-Store Displays FSI Ad Features iHeart Radio Integration ✓ Another successful year for our Green Bean Casserole Ad Features Partner
Slide 21: USA - Innovation
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® USA - INNOVATION College Inn® Culinary Stock Consumer Promotion Start Ship: July Each glass jar: ✓ Finest artisanal ingredients, free- range chicken and grass-fed beef ✓ Is kettle cooked in small batches ✓ Always 100%
Slide 22: USA - Innovation
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® USA - INNOVATION Del Monte Bubble Fruit® Del Monte® Fruit Crunch Parfait™ Digital Display Digital Display Consumer Promotion Consumer Promotion Social Media Social Media Start Ship: April Start Ship: July Online Video
Slide 23: USA – Healthy New Year
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® USA – HEALTHY NEW YEAR Social Media GrowingGreat Partnership • Del Monte launched a partnership with GrowingGreat, a Paid Digital 501(c)3 nonprofit • Growing Great works with 450-member Association of Del Monte Veggief
Slide 24: USA - Foodservice
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® USA - FOODSERVICE National Account Refrigerated Produce Riced Cauliflower Contract Renewals Digital Promotions Bowls at Café Yumm • Three major national account • New digital campaigns have • Del Monte Harvest Selects
Slide 25: Philippines
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® PHILIPPINES Market Share (#1) Market Share (#1) Market Share (#1) Packaged Pineapple Canned Mixed Fruit Canned and Carton Juices Market Share (#1) Market Share (#1) Tomato Sauce Spaghetti Sauce • Del Monte has retained
Slide 26: Philippines
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® PHILIPPINES ▪ In 3Q, the Philippines domestic market sustained its solid growth, generating sales of US$98.5 million, an 11% increase in US dollar terms and 6% in peso terms ▪ Retail sales grew by 7% in peso sales valu
Slide 27: Philippines – Sales Distributor Transition
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® PHILIPPINES – SALES DISTRIBUTOR TRANSITION Successful transition to new distributors in key areas, accounting for 30% of General Trade volume, delivering significant growth: ✓ Central Luzon – Pampanga/Bataan, +15% ✓ Gr
Slide 28: Philippines – Culinary (Ketchups and Condiments)
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® PHILIPPINES – CULINARY (KETCHUPS AND CONDIMENTS) Launch of Stand Up Pouches ✓ Full range of Del Monte condiments in pouch ✓ Accessible pricing to recruit new users ✓ Enables expansion to smaller stores Increased produc
Slide 29: Philippines - Culinary
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® PHILIPPINES - CULINARY In-store events in premium supermarkets ✓ On the ground selling and sampling ✓ Product Highlights ✓ Bundle Packs Del Monte Quick N Easy Leadership presence during key ✓ Relaunch of digital with C
Slide 30: Philippines - Beverage
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® PHILIPPINES - BEVERAGE Re-air of the 100% Fruitection TVC Broaden relevance of Del Monte Fit New “Juice up Your Life” campaign highlighting Del Monte ‘n Right Juice from just weight loss campaign for Del Monte Juice 10
Slide 31: Philippines - Fruits
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® PHILIPPINES - FRUITS Consumption-drive of packaged Expand accessibility with the Christmas season behind Del pineapple, by levelling up core launch of lower-priced Stand-Up- Monte Fiesta Fruit Cocktail Filipino recipes
Slide 32: S&W Asia
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® S&W ASIA ▪ Consumers moving towards less processed and more natural food: S&W expanding sales of S&W Sweet 16 fresh pineapple ▪ E-commerce and digital are growing with North Asia having the largest share of E-commerce
Slide 33: S&W Asia
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® S&W ASIA ▪ Sales of the S&W branded business in Asia and the Middle East grew by 11% in 3Q ▪ Mainly driven by higher sales of fresh pineapple in North Asia and the Middle East as a result of expanded distribution ▪ S&W
Slide 34: S&W in Singapore
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® S&W IN SINGAPORE Launch of Pinabar Machine in Singapore Location: NTUC Fairprice Hyper, Ang Mo Kio Hub Offering added value and convenience to consumers, an automated Pinabar machine is placed in the supermarket to cut
Slide 35: Impact of COVID-19
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® IMPACT OF COVID-19 ▪ The coronavirus (COVID-19) epidemic did not have any material impact on DMPL’s results for the period ended 31 January 2020 ▪ Will continue to monitor and mitigate any risks posed by COVID-19 on sa
Slide 36: Sustainability
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® SUSTAINABILITY ▪ Del Monte Foods builds on its sustainability efforts by eliminating plastic water bottles from its facilities, vending machines, and company meetings and events ▪ In the Philippines, Del Monte encourag
Slide 37: Outlook
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® OUTLOOK ▪ Barring unforeseen circumstances, the DMPL Group is expected to remain profitable in FY2020 on a recurring basis (without one-offs). ▪ Major emphasis on responding to consumer trends through: ✓ Strengthening