Fresh Del Monte Produce, Inc. · NYSE:FDP
Fresh Del Monte Produce — Del Monte — Q1 2021 Earnings Presentation
29 slides from Fresh Del Monte Produce's earnings presentation, Sep 23, 2020
Slide 1: Del Monte Pacific 1Q FY2021 Results
DEL MONTE PACIFIC 1Q FY2021 RESULTS 23 September 2020
Slide 2: Disclaimer
Disclaimer This presentation may contain statements regarding the business of Del MontePacificLimitedanditssubsidiaries(the“Group”)thatareofaforward- looking nature and are therefore based on management’s assumptions aboutfuturedevelopments.Suchforward-lookingstatementsaretypically identified by wor
Slide 3: Contents
Contents ▪ Summary ▪ 1Q FY2021 Results ▪ Gearing ▪ Market Updates ▪ Sustainability ▪ Outlook
Slide 4: Notes to the 1Q FY2021 Results
Notes to the 1Q FY2021 Results ▪ First quarter is from 1 May 2020 to 31 July 2020. ▪ On 30 April 2020, the Group recognised the sale of a 12% stake in Del Monte Philippines, Inc (DMPI) and started recognising this as non-controlling interest (NCI) on 1 May 2020. In addition, DMPL’s effective stake i
Slide 5: 1Q FY2021 Highlights
1Q FY2021 Highlights ▪ Group sales grew by 10% due to higher consumption of healthy, shelf-stable food at home – USA sales up 14% and Philippines sales expanded by 22%, offsetting lower Fresh sales ▪ EBITDA increased by 16% to US$42.4m, and net loss was significantly reduced to US$3.2m from US$38.3m
Slide 6: Outlook
Outlook ▪ To meet sustained demand for our trusted, healthy, shelf-stable products, we will continue to optimise our production while implementing strict safety measures against COVID-19 ▪ Our strategy is to strengthen the core business, expand the product portfolio, in line with market trends for h
Slide 7: DMPL 1Q FY2021 Group Results Summary
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 1Q FY2021 Group Results Summary ▪ Sales of US$413.1m, +10% Sales % Change USA +14 Philippines +22 (in peso terms +18) S&W -19 FieldFresh India (equity accounted) -45 (in rupee terms -40) There are no one-off items this quarter. All figures below
Slide 8: DMPL 1Q FY2021 One-Off Expense/(Income)
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 1Q FY2021 One-Off Expense/(Income) t 8
Slide 9: DMPL 1Q FY2021 Results – As Reported
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 1Q FY2021 Results – As Reported 1Q 1Q In US$m Chg (%) Comments FY2020 FY2021 Higher USA, Philippines and S&W packaged sales getting a Turnover 375.9 413.1 +9.9 lift from the pandemic Higher volume and better sales mix offset higher product Gross
Slide 10: Reduced Gearing
Reduced Gearing ▪ DMPL infused US$379.5m equity and successfully refinanced the loans of DMFI ▪ This provides DMFI with a solid foundation to improve its financial performance and capture market opportunities ▪ DMFI’s credit rating was upgraded by the rating agencies ▪ DMPL Group’s net debt decrease
Slide 11: Del Monte Philippines Bond
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Philippines Bond ▪ In August, Del Monte Philippines applied for regulatory approval of its maiden bond issuance of up to PhP5bn (US$103m), with an option to upsize to PhP7.5 bn (US$155m) ▪ The proposed offering consists of 3 and/or 5-year ma
Slide 12: DMPL 1Q FY2021 Turnover Analysis
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. DMPL 1Q FY2021 Turnover Analysis 1% 33% Americas 66% Asia Pacific Europe Americas +13.5% ▪ Higher volume due to higher demand from the pandemic shelter in place ▪ The principal categories experienced strong growth as consumer behaviour shifted to heal
Slide 13: Market Updates for 1Q FY2021
Market Updates for 1Q FY2021
Slide 14: USA
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. USA Market Share (#1) Market Share (#2) Market Share (#2) Market Share (#2) Canned Vegetable Canned Fruit Fruit Cup Snacks Canned Tomato ▪ Strong category growth momentum, particularly in core centre store, despite some supply constraints, and at a mo
Slide 15: Del Monte Foods USA 1Q Results
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Foods USA 1Q Results DMFI’s 1Q sales improved by 11% to US$268.2m due to the pandemic ▪ Consumers staying at home, preparing meals and snacking with DMFI’s vegetable, fruit, tomato and broth products ▪ Trusted, healthy and shelf-stable produ
Slide 16: 1Q Innovation
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. 1Q Innovation Del Monte® Pine DELUXE GOLD Del Monte® Oats To Go Holiday Shopper O2G Shipper Creative Launched June 2020 Launched June 2020 Each can includes: Each cup includes: Coupon ✓ Naturally extra sweet pineapple ✓ Ready-to-eat single serve oatme
Slide 17: 1Q PR Highlights
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. 1Q PR Highlights ▪ Nearly 1bn impressions - In 1Q, Del Monte Brands and Corporate secured 358 media placements garnering over 976m impressions ▪ Adapting to COVID reality with online content – We developed a parent portal on our Del Monte website with
Slide 18: USA Foodservice
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. USA Foodservice Sustained Bojangles’ Chicken 3-Year Contract Fruit Cup Demand Chooses Del Monte Renewal with Foodbuy • After a competitive bid process, • As K-12 Schools finalised their Del Monte has been retained as plans for the new school year, • B
Slide 19: Philippines
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines Market Share (#1) Market Share (#1) Market Share (#1) Packaged Pineapple Canned Mixed Fruit RTD Juices ex-SUP* Market Share (#1) Market Share (#1) Tomato Sauce Spaghetti Sauce ▪ Del Monte continues to enjoy strong market share leadership a
Slide 20: Philippines
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines ▪ In 1Q, the Philippines domestic market sustained its strong momentum with sales +22% in US dollar terms and 18% in Peso terms ▪ Retail sales surged 32%, more than offsetting foodservice declines. E- commerce advancing rapidly with suppor
Slide 21: Philippines - Fruits
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines - Fruits Core communications focused on Communications designed to be even more increasing consumption: relevant in a pandemic environment: Mixed Fruits: in-home, small scale celebrations “Stay-Lebrations” Canned Pineapple: health and immu
Slide 22: Philippines - Beverage
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines - Beverage Communications strengthened core strengths of the brand, even while improving to be more relevant during the pandemic: 100% Pineapple Juice: Immunity Del Monte Juice Drink: health Del Monte Fit ‘n Right: and protection against d
Slide 23: Philippines - Culinary
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Philippines - Culinary Maximising the opportunities from increased home-cooking incidence: Del Monte Quick ‘n Easy: Quarantine Del Monte Tomato Sauce: Home Cooking Maximisation (Online) ‘Everyday Sauce Special’ Campaign (TV/Online) Del Monte Spaghetti
Slide 24: S&W
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W ▪ COVID-19 started in China which is S&W’s largest market in Asia. The pandemic affected the Fresh market in China most significantly. ▪ It also affected the foodservice channel especially in South Korea for processed products. Hema ▪ E-commerce a
Slide 25: S&W
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W ▪ Sales of the S&W branded business in Asia and the Middle East declined in 1Q o Higher sales of healthy, shelf-stable packaged products such as canned pineapples, mixed fruits, beans and corn o But offset by lower sales of fresh pineapples in Chi
Slide 26: S&W
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. S&W Popeye Singapore promoted our S&W Frozen Pineapple Stick with their Ghost Pepper menu Promotion of S&W Sweet 16 Fresh pineapple by Goodfarmer in China S&W’s 540g Whole Pineapple from distributor Wonil is gaining popularity in South Korea’s top e-c
Slide 27: FieldFresh
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. FieldFresh ▪ DMPL’s share of loss in 1Q was US$0.7m, versus prior year quarter’s US$0.2m due to lower sales of branded packaged products mainly from COVID-19 impact ▪ Foodservice accounted for about 50% of sales pre-pandemic in India; therefore, the p
Slide 28: Sustainability
NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Sustainability ▪ Del Monte Foundation continued donating food and beverage to private and local government organisations to support healthcare workers and other frontliners, and indigent communities in the Philippines during the pandemic ▪ Published o
Slide 29: Outlook
Outlook ▪ To meet sustained demand for our trusted, healthy, shelf-stable products, we will continue to optimise our production while implementing strict safety measures against COVID-19 ▪ Our strategy is to strengthen the core business, expand the product portfolio, in line with market trends for h