Emperador Inc. · PSE:EMI
Emperador — FY2020 Earnings Presentation
30 slides from Emperador's earnings presentation, 2021
Slide 1: Emperador Inc. FY 2020 Results Briefing
EMPERADOR INC. FY 2020 Results Briefing
Slide 2: Agenda
Agenda 1 Snapshot 2 2020 Highlights 3 2020 Financials 4 Key Takeaways
Slide 3: Agenda
Agenda 1 Snapshot 2 2020 Highlights 3 2020 Financials 4 Key Takeaways
Slide 4: 2020 Stellar Performance
2020 Stellar Performance “ EMP delivered 18% earnings growth in 2020 amidst lockdowns, quarantines, liquor bans, closure of on-trade sales channels and restricted travel retail as well as a big liquor tax hike early last year. 4
Slide 5: Agenda
Agenda 1 Snapshot 2 2020 Highlights 3 2020 Financials 4 Key Takeaways
Slide 6: 2020 Global Performance of International Brands
2020 Global Performance of International Brands
Slide 7: Fastest growing blended whisky brand in 2020
THE FASTEST GROWING BLENDED WHISKY BRAND IN 2020 (& 2019) DRIVING THE RETURN TO GROWTH OF THE BLENDED WHISKY CATEGORY THE 2nd LARGEST SELLING WHISKY IN UNITED KINGDOM Source: Nielsen Scantrack / Kantar data to 2nd Jan 2021
Slide 8: United Kingdom
UNITED KINGDOM #1 #5 Malt brand Malt brand
Slide 9: Sweden
SWEDEN #2 #5 Fastest growing Malt brand malt whisky
Slide 10: United States of America
UNITED STATES OF AMERICA # 1 #1 Fastest growing single malt Fastest growing single malt by value by volume +62% Value growth +29% Depletion growth
Slide 11: Canada
CANADA #1 40% Fastest growing Growth in Canada’s largest single malt by far retailer, LCBO(Jura 12 yo) +36% Value growth 7x Category growth
Slide 12: Russia
RUSSIA 30% 293% Depletion growth Depletion growth driven by strong distribution gains
Slide 13: Holland Germany
HOLLAND GERMANY #1 #1 Fastest growing Fastest growing single malt by value single malt
Slide 14: China
CHINA ▪ W&M BRANDS IN CHINA GREW 199% IN 2020 DESPITE THE PANDEMIC ▪ RELENTLESS IN PROMOTING ALL BRANDS THROUGH ONLINE AND OFFLINE CHANNELS. TMALL SALES GREW +227% AND TRAFFIC +197%
Slide 15: China
CHINA +118% +89% +24% Sales increase Sales increase Sales increase #10 Best-selling Blended Scotch, only after re-launch 3 years ago
Slide 16: Cambodia Singapore Taiwan
CAMBODIA SINGAPORE TAIWAN #1 400% 39% Increase in sales Increase in WMG brand Malt brand led by The Dalmore sales led by… Rare and Aged #4 600% overall whisky Increase in brand Jura sales
Slide 17: United Kingdom, Mexico, USA growth
United Kingdom Mexico USA +376% yoy +44% yoy +24% yoy Triple digit growth In modern channel In sales vs last year sell-out
Slide 18: Spain: market leader and best performing brandy
SPAIN 24.8% THE MARKET LEADER AND BEST PERFORMING BRANDY IN VOLUME AND VALUE, BY NIELSEN (vs 22.7%)
Slide 19: Domestic brandy market share
Domestic brandy market share 36.7% EMP dominates market share in the Philippines and other key cities vs 34.1% EMP dominates market share in the Philippines Source: Nielsen 2019 2020
Slide 20: Agenda
Agenda 1 Snapshot 2 2020 Highlights 3 2020 Financials 4 Key Takeaways
Slide 21: 2020 Financials – Highlights
2020 Financials – Highlights EMP continues robust growth amidst challenges +2.0% P 8.0 billion P52.8 Revenue Growth Net Income* billion 70% Brandy 30% Whisky +18% Revenue Revenue Net Income* Breakdown Growth * Income attributable to parent
Slide 22: 2020 Financials
2020 Financials Recorded consistent earnings growth: +18% in FY20, +44% in 4Q20 4Q20 YoY 2019 2020 YoY Commentary Strong performance despite pandemic Revenue 18,367 +4% 51,565 52,834 +2% challenges… Gross Profit 4,274 16,926 15,997 -11% -5% …while maintaining strong margin (Margin) (24.3%) (33.7%) (
Slide 23: 2020 Financials
2020 Financials Revenues Gross Profit & Margin 33.7% 31.1% 51,565 52,834 28.2% +2% 24.3% 16,926 -5% 15,997 17,737 +4% 18,367 -11% 4,803 4,274 4Q19 4Q20 FY19 FY20 4Q19 4Q20 FY19 FY20 EBITDA & Margin Net Income & Margin 15.1% 21.5% 21.9% 13.0% 18.1% 17.5% 11.4% 8.2% 7,961 11,080 11,545 6,726 +18% +4%
Slide 24: 2020 Financials – Segment Breakdown
2020 Financials – Segment Breakdown Consistent whisky and brandy showing Revenues Gross Profit EBITDA Net Income 2019 2020 2019 2020 2019 2020 2019 2020 37,627 36,891 11,339 10,229 8,414 8,466 4,758 5,709 Brandy (73%) (70%) (67%) (64%) (76%) (73%) (72%) (72%) 13,938 15,943 5,586 5,768 2,666 3,079 1,
Slide 25: 2020 Financials – Brandy Segment
2020 Financials – Brandy Segment Brandy profitability maintained despite challenges 4Q20 YoY 2019 2020 YoY Commentary Revenue 13,403 -1% 37,627 36,891 -2% Only -2% last year amidst pandemic woes Higher COGS in 4Q20 due to surge in costs Gross Profit 2,483 11,339 10,229 -26% -10% of inputs impacted b
Slide 26: 2020 Financials – Whisky Segment
2020 Financials – Whisky Segment Net income grew 14% YoY in FY20 despite closure of on-trade channels and travel retail 4Q20 YoY 2019 2020 YoY Commentary £74 £211 £249 Growth driven by UK, Europe, North Revenue +18% +14% 4,964 13,938 15,943 America and Asia especially China Gross Profit 1,791 5,586
Slide 27: 2020 Financials – Cash Position
2020 Financials – Cash Position EMP maintains strong liquidity and cash position Net Debt Cash Debt Net Debt Commentary to Equity 2020 7,561 33,823 26,262 39% Lower net debt to equity due to loan repayment plus reduction in equity-linked securities (ELS) to P3.4bn from P5.2bn previously with the con
Slide 28: Agenda
Agenda 1 Snapshot 2 2020 Highlights 3 2020 Financials 4 Key Takeaways
Slide 29: Takeaways
Takeaways Underlying corporate strengths allow EMP to rise to the crisis Business Brand Cost Strength Strength Management • Global footprint • Brands are sought • Optimize cost • Diversified after by consumers • Rationalize product portfolio • Exhibiting strong expenses • Management consumer brand •
Slide 30: Emperador Inc. FY 2020 Results Briefing
EMPERADOR INC. FY 2020 Results Briefing