Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Q1 FY2016 Earnings Presentation
18 slides from Del Monte Pacific's earnings presentation, Sep 3, 2015
Slide 1: 1Q FY2016 Results
1Q FY2016 Results 3 September 2015 Del Monte Pacific Limited
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 typically
Slide 3: Contents
Contents • Notes to the Results • 1Q FY2016 Results • Outlook • Market Updates 3
Slide 4: Notes to the 1Q FY2016 Results
Notes to the 1Q FY2016 Results 1. DMPL changed its financial-year end to 30 April from 31 December to align with that of its US subsidiary, Del Monte Foods, Inc (DMFI). The first quarter of the Company is now 1 May to 31 July. 2. DMFI’s financial results have been consolidated in DMPL’s financials s
Slide 5: DMPL 1Q FY2016 Results Summary
DMPL 1Q FY2016 Results Summary • Achieved sales of US$473m, 6% higher year on year • Sales of Del Monte Foods in the US grew by 10% • Sales of Del Monte in the Philippines grew by 7% • Recorded Group EBITDA of US$17m vs breakeven in prior year and narrowed net loss to US$12m versus prior year’s loss
Slide 6: DMPL 1Q FY2016 Results
DMPL 1Q FY2016 Results 1Q FY 1Q FY In US$m Chg (%) Comments 2015 2016 Higher DMFI and Philippines Turnover 445.6 472.8 +6.1 sales Prior year had non-recurring Gross profit 70.7 93.8 +32.5 inventory step up Prior year impacted by non- Operating profit/(loss) (12.1) 0.2 +101.8 recurring expenses (NRE)
Slide 7: DMPL ex DMFI 1Q FY 2016 Results
DMPL ex DMFI 1Q FY 2016 Results 1Q FY 1Q FY In US$m Chg (%) Comments 2015 2016 Lower export sales due to Turnover 120.6 109.9 -8.9 constrained pineapple supply Same as above offset by tight Gross profit 26.1 25.3 -3.1 cost management Prior year impacted by non- Operating profit 8.7 9.4 +8.0 recurrin
Slide 8: 1Q FY 2016 Turnover Analysis
1Q FY 2016 Turnover Analysis 79% Americas 20% Asia Pacific Europe 1% Americas +9.1% • Due to higher DMFI sales mainly due to the consolidation of recently acquired Sager Creek Asia Pacific -1.6% • Higher sales in the Philippines of +7% offset by weak exports of packaged and fresh pineapple due to re
Slide 9: Outlook for FY2016
Outlook for FY2016 Barring unforeseen circumstances, the Group expects to return to profitability in FY2016 which will generate more free cash flow to allow it to deleverage further USA : • Prioritise promotion in critical consumption windows • Accelerate foodservice growth and expand retail portfol
Slide 10: Cash Flow Outlook
Cash Flow Outlook Aside from the seasonal sales contribution, DMFI’s cash flow for 1Q is lower due to the seasonal production cycle where this quarter’s working capital builds up through the end of 2Q in October. Past the production peak in October, cash flows are expected to improve in the seasonal
Slide 11: Del Monte Foods USA
Del Monte Foods USA • DMFI’s 1Q sales including Sager Creek grew by 10% to US$373.5m • Excluding Sager Creek, DMFI’s sales grew by 2% • Sales were constrained by tight supply as a result of higher than anticipated positive consumer response from the corrective marketing actions implemented earlier o
Slide 12: DMFI - Fruit & Veggie Fusions Launch
DMFI - Fruit & Veggie Fusions Launch Super Fruit Cup Campaign communicates the power of Veggies in a Fruit Cup! Digital/Social/PR: Consumer Promotions & Shopper Marketing: Print 12
Slide 13: Del Monte Philippines
Del Monte Philippines Philippines continued to grow by 7%, driven primarily by increased demand for packaged mixed fruit and beverage Cook like an expert with Del Monte Quick n Easy Sauces Del Monte Fit ‘n Right is the only juice drink that contains GCE and L-Carnitine that helps reduce fat. Endorse
Slide 14: Del Monte Philippines (cont'd)
Del Monte Philippines (cont’d) Del Monte Ketchup in a new resealable pouch Del Monte Spaghetti Sauce: Has the complete taste loved by kids, that’s why it’s No. 1! 14
Slide 15: S&W Asia and the Middle East
S&W Asia and the Middle East • S&W branded business sales in Asia and the Middle East rose 10% • Due to strong fresh pineapple exports, which offset softness in the packaged segment as a result of constrained supply Launch of S&W 100% Apple Juice and Coconut Liquid in Israel Back to School promotion
Slide 16: S&W Asia and the Middle East (cont'd)
S&W Asia and the Middle East (cont’d) Pineapple Merchandising Competition in Singapore Product merchandising competition of S&W Fresh Pineapple and Canned juices across various store formats of NTUC Fairprice
Slide 17: S&W Asia and the Middle East (cont'd)
S&W Asia and the Middle East (cont’d) Best Innovation Award- S&W Heart Smart Won the Food & Beverage Award in the Singapore Business Review Listed Companies Awards 2015 for the Best Innovation - Food & Beverage category
Slide 18: FieldFresh India
FieldFresh India • DMPL’s share of loss in the FieldFresh joint venture in India for 1Q was down to US$0.4m from US$0.6m in the prior year period • FieldFresh’s 1Q sales +10% with the Del Monte branded packaged sales +16% • Improved volume in canned juice, olive oil and pasta • Launched pasta made f