Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — H1 FY2022 Earnings Presentation
36 slides from Del Monte Pacific's earnings presentation, Dec 15, 2021
Slide 1: Resilient Growth: 2Q and 1H FY2022 Results
RESILIENT GROWTH DEL MONTE PACIFIC 2Q AND 1H FY2022 RESULTS 15 December 2021 Nourishing Families. Enriching Lives. Every Day.
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 ▪ Summary ▪ 2Q FY2022 Results ▪ 1H FY2022 Results ▪ Market Updates ▪ Sustainability ▪ Outlook
Slide 4: Notes to the Results
Notes to the Results ▪ 2Q is from 1 August to 31 October 2021 ▪ DMPL owns 87% of Del Monte Philippines, Inc. and 93.6% of Del Monte Foods, Inc. DMPL recognizes a 13% and 6.4% non- controlling interest (NCI) in these two subsidiaries, respectively. These comprise the NCI line in the P&L. Net profit/(
Slide 5: 2Q and 1H FY2022 Highlights
2Q and 1H FY2022 Highlights 2Q ▪ DMPL Group continued its strong performance with a net profit of US$35.8m in 2Q, up 64% from US$21.9m in the same period last year ▪ US subsidiary Del Monte Foods increased its EBITDA by 23% to US$70.8m and its net profit by 151% to US$22.7m, continuing its path to h
Slide 6: Outlook
Outlook ▪ Strengthen our core business, expand the product portfolio, in response to consumer preference for health and wellness, and grow our branded business ▪ More product availability through better distribution and expanded sales channels including e-commerce ▪ DMPL is well-positioned in this e
Slide 7: 2Q FY2022 Results Summary
2Q FY2022 Results Summary ▪ Sales of US$651.0m, +4% Sales % Change Americas +7 Philippines -6 (in peso terms -2) S&W +16 FieldFresh India (equity accounted) -2 (in rupee terms -2) All figures below are vs prior year quarter: ▪ EBITDA of US$107.4m, up 14% from US$94.4m, due to higher sales, better sa
Slide 8: 2Q FY2022 Results
2Q FY2022 Results 2Q 2Q In US$m Chg (%) Comments FY2021 FY2022 Higher USA and international market sales including Turnover 623.5 651.0 +4.4 S&W business in Asia Gross profit 159.7 178.5 +11.7 Higher sales, better sales mix in USA, price increases EBITDA 94.4 107.4 +13.8 Same as above plus lower G&A
Slide 9: 2Q FY2022 Turnover Analysis
2Q FY2022 Turnover Analysis 2% Americas 24% Asia Pacific 74% Europe Americas +6.9% ▪ Branded retail sales grew by 11% offsetting reduced sales of non-core private label as planned; Foodservice sales also increased significantly by 60% ▪ In Americas, branded retail accounted for 71% while foodservice
Slide 10: 1H FY2022 Results
1H FY2022 Results
Slide 11: 1H FY2022 Results Summary
1H FY2022 Results Summary ▪ Sales of US$1.1bn, +7% Sales % Change Americas +8 Philippines -2 (in peso terms -2) S&W +18 FieldFresh India (equity accounted) +14 (in rupee terms +12) All figures below are vs prior year first half period: ▪ EBITDA of US$182.3m, up 33% from US$136.8m, due to higher sale
Slide 12: 1H FY2022 Results
1H FY2022 Results 1H 1H In US$m Chg (%) Comments FY2021 FY2022 Higher USA and international market sales including Turnover 1,036.5 1,113.1 +7.4 S&W business in Asia Gross profit 253.9 311.9 +22.9 Higher sales, better sales mix in USA, price increases EBITDA 136.8 182.3 +33.3 Same as above plus lowe
Slide 13: 1H FY2022 Turnover Analysis
1H FY2022 Turnover Analysis 2% Americas 28% Asia Pacific 70% Europe Americas +8.1% ▪ Branded retail sales grew by 13% offsetting reduced sales of non-core private label as planned; Foodservice sales also increased significantly by 41% ▪ In Americas, branded retail accounted for 74% while foodservice
Slide 14: Market Updates for 2Q and 1H FY2022
Market Updates for 2Q and 1H FY2022
Slide 15: Del Monte Foods USA 2Q and 1H FY2022
Del Monte Foods USA 2Q and 1H FY2022 2Q ▪ DMFI’s sales were US$477.5m or 73% of Group sales ✓ Branded retail sales grew by 11% resulting from supply and distribution gains, strong underlying momentum on core vegetable businesses and shipments in preparation for the Thanksgiving holiday promotional a
Slide 16: USA Market Share
USA Market Share Market Share Market Share Canned Vegetable (#1) Canned Fruit (#2) Fruit Cup Snacks (#2) Market Share Market Share Canned Tomato (#3) Broth (#2) ▪ Del Monte brand performed well in its traditional canned categories as consumers continue to reach for trusted brands and we continue to
Slide 17: USA Vegetables: Category/Share Trends FYTD
USA Vegetables: Category/Share Trends FYTD ▪ Category progressively improved vs. prior year period ▪ Turned to growth in October as supply replenishment commenced following FY2021 pack ▪ Del Monte maintained strong category lead due to baseline strength and quality merchandising ahead of prior year
Slide 18: USA Vegetables Performance Details
USA Vegetables Performance Details Supply & Distribution Recovery Post COVID-19 Base trends in Category led by Del Monte ▪ Annual Contract Value (ACV)% and Total Distribution Points ▪ Del Monte leading base trend, with distribution fueled by (TDP) in a better position vs prior year period healthiest
Slide 19: November: Early Holiday Performance Promising
November: Early Holiday Performance Promising While industry categories continue to adjust downward from FY21 COVID-19 levels, our brands are outperforming the competition and increasing share across all segments! Thanksgiving Volume – Weeks of Nov. 15 and Nov. 22 EQ Volume - % Chg vs YA Share Categ
Slide 20: Del Monte Veg sets a 5-year high in Nov 2021
Del Monte Veg sets a 5-year high in Nov 2021 Del Monte Historical Equivalent Volume Share % 30% 24% 25% 20% 15% 10% 5% 0% Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct 2017 2018 2019 2020 2021 Source: Nielsen RMS / Scantrack D
Slide 21: USA 2Q Marketing Highlights
USA 2Q Marketing Highlights Veggieful New Item Support Veg TV on Air Vacuum Pack Corn Restage “Best of Award” in 5 varieties which Parents September include: Satellite Media Tour with Jade Roper Contadina San issue for Veggieful • Delicious Del Monte Marzano Shelftalk Corn program • Less water for a
Slide 22: USA 2Q Marketing Highlights
USA 2Q Marketing Highlights Joyba Regional Launch Website Retail & Shopper Marketing Social Satellite media tour & PR College Tour w/Influencers 22
Slide 23: USA Foodservice
USA Foodservice NEW Customer Business NEW JOYBA Customers t t On-Campus Dining 300 New Micro Markets t t Resort Retail Store 23
Slide 24: Del Monte Philippines 2Q and 1H FY2022
Del Monte Philippines 2Q and 1H FY2022 ▪ DMPL’s 2nd largest and most profitable subsidiary, Del Monte PhiIippines, Inc., achieved sales of US$186.1m for 2Q FY2022, up 3%, and US$362.1m for 1H, up 11% ✓ International sales rose 18% to US$69.7m in 2Q on robust sales of packaged fruit and beverages in
Slide 25: Philippines Market Share
Philippines Market Share Market Share Market Share Packaged Pineapple (#1) Canned Mixed Fruit (#1) RTD Juices ex foil pouches (#1) Market Share Market Share Tomato Sauce (#1) Spaghetti Sauce (#1) ▪ Del Monte continues to enjoy strong market share leadership across all its major categories, with shar
Slide 26: Philippines Fruits
Philippines Fruits Building Relevance in Everyday Meal Occasions NEW DIGITAL ▪ NEW Piñadobo marketing campaign romances the love between pineapple and adobo, highlighting the Piña-juicy tamis (sweet) taste difference that pineapples bring to the dish. The campaign showcases the nuot-namnam (seeping
Slide 27: Philippines Beverage - Juices
Philippines Beverage - Juices Continued strengthening the core strengths of each brand, even while improving pandemic relevance during COVID-19: Del Monte Juice Drink: Digital campaign 100% Pineapple Juice: highlighting delicious and healthy variety of ACE: Drove relevance of flavors for everyday at
Slide 28: Philippines Beverage – Del Monte Vinamilk
Philippines Beverage – Del Monte Vinamilk WHAT IS DEL MONTE-VINAMILK? ▪ Joint venture with Vinamilk Dairy of Vietnam ▪ Launched in September 2021, focused on ready-to-drink milk, yogurt and milk tea with highly relevant fortification PERFORMANCE IN 1H FY2022: ▪ Shipped 171K cases after only two mont
Slide 29: Philippines Beverage – Mr. Milk
Philippines Beverage – Mr. Milk WHAT IS MR. MILK? ▪ Fruit- and yogurt-flavored milk drink (plain, strawberry, green apple + mango) loved by kids ▪ Sold in packs of six at P50, providing moms better value-for-money PERFORMANCE IN 1H FY2022: ▪ Shipped 449K cases, 53% higher vs prior year period ▪ Net
Slide 30: Philippines Culinary
Philippines Culinary Ensure regular usage of Del Monte Ensure that Del Monte Creamy and Cheesy Spaghetti Sauce by featuring its superior remains to be every kid’s favorite spaghetti taste and quality ingredients sauce by highlighting that it is the creamiest and cheesiest Del Monte Spaghetti sauce i
Slide 31: Philippines Culinary
Philippines Culinary Ensure that Del Monte is present on the table Promote the Del Monte Quick n of every Filipino family this Christmas by Easy new upsize packs featuring limited edition Pasko (Christmas) Packs that allows them to prepare a delicious spaghetti and could also be given as a gift to t
Slide 32: Philippines Snacks - Biscuits
Philippines Snacks - Biscuits Potato Crisp awareness programs in-store NEW “Ilabas (Bring Out) ang Munchster” through secondary displays and increased campaign highlighted the fruity flavors that kids placement. Continuous digital highlights on the love which bring out their childlike wonder of guil
Slide 33: S&W Market Overview
S&W Market Overview ▪ Our high quality, premium MD2 fresh pineapple makes us the largest fresh pineapple exporter to China, with 53% value share ▪ One of the 3 biggest fresh pineapple exporters to Japan, South Korea and the Middle East ▪ E-commerce and digital are growing with North Asia having the
Slide 34: S&W 2Q and 1H FY2022
S&W 2Q and 1H FY2022 ▪ 2Q sales of S&W branded business rose 16% ✓ Higher sales of S&W packaged pineapple and mixed fruit in North Asia ✓ Higher sales of S&W fresh pineapple but lower non-S&W fresh pineapple sales due to reduced supply resulting from timing of harvest ✓ S&W pineapples sold in China
Slide 35: Sustainability
Sustainability ▪ DMPL received the Singapore Corporate Governance Award 2021 from the Securities Investors Association (Singapore) in October, which includes Sustainability (40%) aside from Governance (60%) as part of the criteria this year ▪ DMPL ranked #19 out of 519 companies in the Singapore Gov
Slide 36: Outlook
Outlook ▪ Strengthen our core business, expand the product portfolio, in response to consumer preference for health and wellness, and grow our branded business ▪ More product availability through better distribution and expanded sales channels including e-commerce ▪ DMPL is well-positioned in this e