Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — FY2013 Earnings Presentation
19 slides from Del Monte Pacific's earnings presentation, Feb 25, 2014
Slide 1: Fourth Quarter and Full Year 2013 Results
Del Monte Pacific Limited Fourth Quarter and Full Year 2013 Results 25 February 2014 1
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 Executive Summary One-off Fees on US Acquisition 4Q 2013 Results Market Updates FY 2013 Results Dividend US Acquisition Outlook 3
Slide 4: Executive Summary
Executive Summary DEL MONTE PACIFIC DELIVERS HIGHER SALES AND RECURRING PROFIT FOR FULL YEAR 2013 NOW A GLOBAL BRANDED FOOD COMPANY WITH THE ACQUISITION OF THE US DEL MONTE • Full year sales up 7% to a record level of US$492m • S&W generated higher sales of 16% led by the fresh segment’s robust grow
Slide 5: One-off Fees on US Acquisition
One--off Fees on US Acquisition One • On 18 Feb 2014, DMPL completed the purchase of the consumer food business from Del Monte Corporation for US$1.675 billion subject to working capital adjustments • DMPL incurred one-off transaction fees in relation to this deal as follows: One-off transaction fee
Slide 6: Fourth Quarter 2013
Fourth Quarter 2013 4Q 4Q In US$m Chg (%) Comments 2012 2013 Lower Philippine sales offset S&W Turnover 159.5 156.8 -1.7 and non branded growth Gross profit 38.7 35.8 -7.5 Change in product mix Op profit-recurring 19.2 19.0 -1.1 Due to lower sales Op profit-non recurring 19.2 (3.8) nm US$23m one off
Slide 7: 4Q Turnover Analysis
4Q Turnover Analysis 74% 26% Branded Non Branded Branded -5% • Philippines sales down due to change in product mix. This offset the +18% growth of S&W, led by the fresh segment’s robust growth of 34% Non Branded +8% • Improved sales of processed pineapple and tropical mixed fruit products 7
Slide 8: Philippine Market 4Q Updates
T Philippine Market 4Q Updates • Lower sales in the Philippines due to product mix change • Ended 2013 with the highest market shares in the past 5 years on core 100% Pineapple Juice, Packaged Pineapple, Packaged Fruits and Tomato Sauce based on Nielsen retail study • Showing the continued strengthe
Slide 9: S&W 4Q Updates
T S&W 4Q Updates • S&W sales rose 18% to US$13.2 million, led by the fresh segment’s robust 34% growth • Also driven by new products and the growth in the Middle East and Asia primarily Japan, Korea and the Philippines • Launched Canned Saba in Miso, Shoyu and Brine variants and Pasta Sauces in Carb
Slide 10: India 4Q Updates
T India 4Q Updates • Del Monte sales in India posted 34% growth • But incurred higher marketing expenses • The Group recognised an equity loss of US$1.0 million, same as prior year quarter The Italiano Food Festival sponsored by Del Monte in the top 61 Big Bazaar stores across the country during the
Slide 11: 4Q Margins
4Q Margins % Gross margin Margin Change in product mix 30 24.2 22.8 Operating margin Flat 20 Net margin 12.0 12.1 12.2 Flat 8.4 8.4 10 0 Gross margin Operating margin Net margin 4Q12 4Q13 11
Slide 12: Full Year 2013
Full Year 2013 FY FY In US$m Chg (%) Comments 2012 2013 Higher branded and non branded Turnover 459.7 492.2 +7.1 growth Gross profit 112.8 115.6 +2.5 Higher volume and prices Op profit-recurring 50.0 54.2 +8.4 Due to higher sales US$27m one off fees (US deal and Op profit-non recurring 50.0 27.5 -45
Slide 13: FY Turnover Analysis
FY Turnover Analysis 68% 32% Branded Non Branded Branded +5% • Philippines +4% while S&W +16% led by the fresh segment’s strong expansion of +30% Non Branded +12% • Improved sales of processed pineapple and tropical mixed fruit products 13
Slide 14: FY Margins
FY Margins % Gross margin Margin Higher pineapple and warehousing costs 30 24.5 23.5 Operating margin 20 Flat Net margin Higher finance 10.9 11.0 expense 10 7.0 6.9 0 Gross margin Operating margin Net margin FY12 FY13 14
Slide 15: Dividend
Dividend • With the acquisition in the US, the Board adopted a prudent approach and will not be declaring a final dividend for 2013 • On 12 August 2013, the Board declared an interim dividend of US$0.0062 per share which represents a 50% payout of 2013 net profit US cents 1H: 1H: 0.46 0.72 3 2.56 US
Slide 16: Subsequent Event – US Acquisition
T Subsequent Event – US Acquisition
Slide 17: US Acquisition
US Acquisition • On 18 Feb 2014, DMPL completed the purchase of the consumer food business from Del Monte Corporation for US$1.675 billion subject to working capital adjustments • Transforming the Group into a global branded food and beverage company • To quadruple sales from the current US$500m lev
Slide 18: US Acquisition (cont'd)
US Acquisition (cont’d) 1. DMPL expects to benefit from much wider access to the processed pineapple business in the U.S. – Currently while DMFI has a 26% market share in the canned fruit market, its share in the canned pineapple segment is less than 10% – Focus on increasing our penetration in this
Slide 19: Outlook
Outlook 1. DMPL expects to generate higher earnings on a recurring basis in 1Q 2014 but expects to report a lower non-recurring net income due to one-off transaction fees in closing its US$1.675bn acquisition The US business will be consolidated from the acquisition closing onwards, ie from 18 Feb 2