Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — FY2008 Earnings Presentation
18 slides from Del Monte Pacific's earnings presentation, Feb 24, 2009
Slide 1: Fourth Quarter and Full Year 2008 Results
Del Monte Pacific Limited Fourth Quarter and Full Year 2008 Results 24 February 2009
Slide 2: Executive Summary
2 Executive Summary • Sales for 4Q08 & FY08 rose 16% & 32%, respectively • Biggest driver coming from the Philippines • Gross margin for 4Q08 and FY08 increased to 31% and 25%, respectively • Strong operating income, up 52% in 4Q08 and 47% in FY08 • Net income before non-recurring items surged 47% i
Slide 3: Non-Recurring Items
Non-Recurring Items All on after tax basis In US$m 4Q 2007 4Q 2008 FY 2007 FY 2008 FX forward hedging loss (2.0) (4.1) Great Lakes sale - net 0.5 2.3 Streamlining (0.9) 0.1 (0.9) (0.9) Deferred tax benefit 10.3 10.3 Tax expenditure reversal 0.9 Total 9.4 (1.4) 10.3 (2.7)
Slide 4: Fourth Quarter 2008
Fourth Quarter 2008 In US$m 4Q 2007 4Q 2008 Chg (%) Comments Largely driven by the Philippine Turnover 105.9 122.4 +15.6 market. Also higher sales in Europe and North America Higher sales, more favourable prices, Gross profit 31.3 38.0 +21.4 cost savings of US$0.7m Strong gross profit, aided by lowe
Slide 5: 4Q Turnover Analysis
4Q Turnover Analysis By Market Asia Pac +12% Higher sales in Philippines, esp. Fit ‘n Right juice drink Higher sales of S&W and fresh Asia Pacific 77% pineapples more than made up the forgone sales of Great Lakes Europe and which was disposed on 30 Sep North America 23% 2008 E&NA +31% Better prices
Slide 6: 4Q Margins
More favourable prices 4Q Margins Cost saving programs Higher gross profit Lower operating expenses 2007 included a one time % Margin deferred tax benefit, that did not recur in 2008 4Q07 4Q08
Slide 7: 4Q Cash Flow Variance Analysis
4Q Cash Flow Variance Analysis 3Q08 4Q08 Operations Capex Additional Sale of Exchange investment in subsidiary & Others Bharti Del Monte India -US$62.8m -US$66.8m -US$62.8m -8.7m -1.4m +0.5m -1.7m +15.3m Net Debt Net Debt
Slide 8: Full Year 2008
Full Year 2008 In US$m FY 2007 FY 2008 Chg (%) Comments Broad-based growth in all major Turnover 289.4 381.5 +31.8 markets More favourable prices, cost savings Gross profit 71.6 96.2 +34.4 of US$1.7m Higher gross profit, despite higher Operating profit 38.6 56.9 +47.4 expenses Includes US$6.3m FX fo
Slide 9: FY Turnover Analysis
By Market FY Turnover Analysis Asia Pac +36% Higher sales in Philippines, esp. Fit ‘n Right drink Full year contribution of S&W Asia Pacific 76% Higher fresh pineapple sales Europe and E&NA +20% Gains in market share and North America 24% distribution coverage as well as better prices and volume by
Slide 10: FY Margins
More favourable prices FY Margins Cost saving programs Higher gross profit 2007 included a one time % Margin deferred tax benefit, that did not recur in 2008 FY07 FY08
Slide 11: FY Cash Flow Variance Analysis
FY Cash Flow Variance Analysis 4Q07 4Q08 Operations Capex Additional Dividend Others -US$19.2m investment in paid +10.5m Bharti Del Monte -19.5m India Net Debt -US$62.8m -US$62.8m -4.5m Net Debt -29.7m -0.4m
Slide 12: S&W
S&W Contributed sales of US$7.4m in 2008 which includes branded fresh pineapples, a new business in 2008 Higher sales in existing markets of Singapore, HK and Japan Expanded into Korea and Philippines Delayed launch in Vietnam, and will only commence in 2009 For 2009, we will continue our expansion
Slide 13: Bharti Del Monte India (BDM)
Bharti Del Monte India (BDM) Sales doubled to US$10.3m in 2008 Started sales of Del Monte processed products (canned fruits, juices) in India, imported from Philippines with initial focus on the food service sector (ie Coffee Day, Yo Dimsum) On Fresh exports, streamlined product line and identified
Slide 14: Credit Standing
Credit Standing Only utilized 35% of bank credit lines Philippine banks’ lending increased more than 20% in 2008 Banks continue to approach DMPL given its creditworthiness Majority of loans are short term due to better rates, but reviewing this Loan mix : 80% Peso, 20% US$ to optimize natural hedge
Slide 15: Dividend
Dividend Dividend Book Closure Payment Date Dividend/ Payout Ratio Date Share Final 12 March 2009 26 March 2009 US$ 0.0176 75% of 2H08 profit Vs Last Year Final 14 March 2008 27 March 2008 US$ 0.0195 75% of 2H07 profit
Slide 16: Outlook
Outlook Challenging 2009 with weaker demand expected in Europe and North America - Weak demand for the more expensive fruits in glass jars and cups Expects demand to be flat in key markets, Philippines and India - With contingency action plans in case demand weakens Continued expansion in Asia Pacif
Slide 17: Strategy
Strategy T 9 Transform DMPL into one of the fastest growing global branded food and beverage companies 9 Replicate Philippine success in India with Bharti Del Monte and in Asian markets with S&W 9 While growing the base business Europe Asia Pacific Middle East India Africa
Slide 18: Del Monte
Del Monte