Emperador Inc. · PSE:EMI
Emperador — H1 2024 Earnings Presentation
23 slides from Emperador's earnings presentation, Aug 1, 2024
Slide 1: EMPERADOR INC. 1H2024 Results Presentation
EMPERADOR INC. 1H2024 Results Presentation
Slide 2: 1H2024 Financials – Revenue Highlights
1H2024 Financials – Revenue Highlights Php 16.7 billion Php28.6 -10.3% YoY billion Brandy Revenue -7.9% YoY Php 11.9 billion Revenue -4.4% YoY Whisky Revenue
Slide 3: 2Q2024 Financials – Revenue Highlights
2Q2024 Financials – Revenue Highlights Php 8.8 Brandy Revenue 8,836 billion Php15.5 12.2% QoQ 7,878 billion Brandy Revenue 1Q24 2Q24 18.3% QoQ Php 6.7 Whisky Revenue 6,685 billion 5,245 Revenue 27.4% QoQ Whisky Revenue 1Q24 2Q24
Slide 4: 1H24 Key Financials
1H24 Key Financials Revenues increased quarter on quarter, seeing improved markets as the year progressed 1H24 YoY 2Q24 QoQ Commentary While revenues were down in 1H, 2Q was notably better Revenue 28,644 -7.9% 15,521 18.3% vs previous quarter due to a bit of improvement in demand Gross 9,343 5,129 C
Slide 5: 1H24 Key Financials – Brandy Segment
1H24 Key Financials – Brandy Segment Brandy performance up vs previous quarter on higher sales 1H24 YoY 2Q24 QoQ Commentary While 1H revenues were challenged, brandy saw increased Revenue 16,714 -10.3% 8,836 12.2% sales in 2Q QoQ as consumer demand picked up Gross 4,055 2,176 QoQ gross profits up on
Slide 6: 1H24 Key Financials – Whisky Segment
1H24 Key Financials – Whisky Segment Whisky performance better for the quarter 1H24 YoY 2Q24 QoQ Commentary 1H revenues were down; 2Q sales were up as Revenue 11,930 -4.4% 6,685 27.4% consumption saw signs of recovery QoQ Gross 5,288 2,953 Gross profit margins remained healthy at 43% due profit -4.5
Slide 7: Strategy
Strategy Contemporize Premiumize Internationalize ▪ Innovate and launch ▪ Single malt focus ▪ Bring our products to more products tailored to specific parts of the world tastes ▪ Focus on premium products with higher margins ▪ New market entries ▪ Position brand to appeal to target markets ▪ Drive p
Slide 8: Revenue Objectives
Revenue Objectives Revenues growing in line with target to meet 2025 objectives Prior to 2014 2020 2023 2025 30% 39% 50% 50% 61% 70% 100% • 100% Philippine • 70% Brandy • 61% Brandy • 50% Brandy brandy business • 30% Whisky • 39% Whisky • 50% Whisky
Slide 9: Business Fundamentals
Business Fundamentals • Fundamentals of the business are all intact and long-term trajectory is on track • We have seen some softness in consumer confidence last year and early this year but we are seeing some confidence returning already • Long-term premiumization strategy is still compelling, not
Slide 10: Investment in Whisky Business
Investment in Whisky Business Dalmore Distillery Expansion • Will expand the Dalmore distillery to cater to future demand • Expansion will double the distillery’s production capacity • Construction started towards the end of 2022 and is expected to be completed in 2024 • On track to completing expan
Slide 11: Home of a Masterpiece Film
HOME OF A MASTERPIECE FILM • Conference distillery video, rather than an episode of the documentary
Slide 12: Investment in Whisky Business
Investment in Whisky Business Expansion of Maturation Complex in Invergordon Distillery • Doubling footprint to 92 hectares • Will build additional warehouses for whisky aging • Project will span many years and will eventually house an additional 1.5 million casks
Slide 13: The Dalmore Luminary No. 2
The Dalmore Luminary No. 2 • Luminary No. 2 – The Rare, a 49 year- old liquid, sold at Sotheby’s for USD 117,400 • Glass structure that houses the Luminary No. 2 – The Rare is a unique design co-created with Zaha Hadid Architects
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Slide 15: The Dalmore Flagship Store - Madrid
The Dalmore Flagship Store - Madrid
Slide 16: The Dalmore Flagship Store - Madrid
The Dalmore Flagship Store - Madrid
Slide 17: The Dalmore Flagship Store - Madrid
The Dalmore Flagship Store - Madrid
Slide 18: 150th Anniversary of Fundador
150th Anniversary of Fundador • 150 year-anniversary of the Fundador brand • Numerous activities to celebrate this milestone • Pushing forward the Fundador sherry cask collection – already showing signs of success in markets it entered
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Slide 21: Update: Partnership in China
Update: Partnership in China This partnership with Fuyu (member of the Fosun Group), one of China’s largest beverage companies, will create more opportunities for our business in China, particularly brandy
Slide 22: Summary
Summary • Better results in 2Q vs previous quarter – increased sales as we saw demand begin to pick up – signals better mid-term outlook • Global performance continued to be mixed but many markets have shown improvement • Will continue to invest in the business following the CPI strategy • Philippin
Slide 23: Q&A
THE ALMORE — EMPERADOR Q&A