Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Q1 FY2020 Earnings Presentation
28 slides from Del Monte Pacific's earnings presentation, Sep 6, 2019
Slide 1: Del Monte Pacific 1Q FY2020 Results
T N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® D E L M O NT E PACIFIC 1Q F Y 2 0 2 0 R E S U L T S 6 September 2019 NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. ®
Slide 2: Disclaimer
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® 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 as
Slide 3: Contents
CONTENTS ▪ Summary ▪ 1Q FY2020 Results ▪ Market Updates ▪ National Scientist ▪ Sustainability ▪ Outlook 3
Slide 4: Notes to the 1Q FY2020 Results
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® NOTES TO THE 1Q FY2020 RESULTS ▪ First quarter is 1 May to 31 July 2019. ▪ DMPL’s effective stake in DMFI is 89.4%, hence the non controlling interest line (NCI) in the P&L. Net income/(loss) is net of NCI. ▪ DMPL Grou
Slide 5: 1Q FY2020 Highlights
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® 1Q FY2020 HIGHLIGHTS ▪ Gross margin rose 6.5 ppts and recurring EBITDA improved by 42% to US$38.7m due to pricing, higher fresh pineapple sales and better sales mix ▪ Recurring operating profit increased by US$11.9m to
Slide 6: Outlook
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® OUTLOOK ▪ Barring unforeseen circumstances, the Group is expected to be profitable in FY2020 on a recurring basis (without one-offs). Certain one-off expenses are expected from streamlining of operations ▪ Major emphas
Slide 7: DMPL 1Q FY2020 Group Results Summary
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® DMPL 1Q FY2020 GROUP RESULTS SUMMARY ▪ Sales of US$375.9m, -14% Sales % Change US -22 Philippines +4 (in peso terms +2) S&W +19 FieldFresh India (equity accounted) +8 (in rupee terms +11) All figures below without one-
Slide 8: DMPL 1Q FY2020 One-off Expense/(Income)
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® DMPL 1Q FY2020 ONE-OFF EXPENSE/(INCOME) In US$ m 1Q FY19 1Q FY20 Booked under Partial disposal of Crystal City, Texas assets - 1.7 Misc Expense Closure of Sager Creek, Arkansas plant 7.4 - CGS Closure of Plymouth, Indi
Slide 9: DMPL 1Q FY2020 Results – As Reported
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® DMPL 1Q FY2020 RESULTS – AS REPORTED 1Q 1Q In US$m Chg (%) Comments FY2019 FY2020 Mainly due to the divested Sager business and lower USA Turnover 437.2 375.9 -14.0 sales partly offset by higher Philippines and S&W Asi
Slide 10: DMPL 1Q FY2020 Turnover Analysis
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® DMPL 1Q FY2020 TURNOVER ANALYSIS 2% Americas 34% 64% Asia Pacific Europe Americas -21.6% ▪ In line with strategy, divested the low-margin Sager business. Stripping it out, sales would have been down 15% ▪ Lower sales o
Slide 11: Market Updates for 1Q FY2020
11 Market Updates for 1Q FY2020
Slide 12: USA
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® USA Market Share (#1) Market Share (#1) Market Share (#2) Market Share (#2) Canned Vegetable Canned Fruit Fruit Cup Snacks Canned Tomato ▪ Maintaining solid share across legacy categories, while expanding into frozen c
Slide 13: Del Monte Foods USA 1Q Results
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® DEL MONTE FOODS USA 1Q RESULTS DMFI’s 1Q sales down 22% to US$241.4m ▪ Stripping out the Sager Creek business which was divested in September 2017, DMFI sales would have been down 15% ▪ Reduced sales of low-margin non-
Slide 14: USA - Innovation
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® USA - INNOVATION Del Monte Crunch Parfait Launched April 2019 Del Monte Bubble Fruit Each cup includes: •1 full serving of fruit •2 billion probiotics for digestive health •No artificial flavors or preservatives • Non-
Slide 15: USA - Innovation
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® USA - INNOVATION Del Monte Veggieful Bites Contadina Pizzettas Freezer door cling Freezer door cling Shelf talk Shelf talk Regional FSI Demo Demo Regional FSI Each 5-bite serving contains: Each 5-bite serving contains:
Slide 16: USA - Foodservice
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® USA - FOODSERVICE Fruit & Chia in the Air Sodexo Partnership Strong Start for Fruit Crunch Parfaits • Spirit Airlines, a leisure airline in • A new partnership has been • Initial orders for Fruit Crunch the US, has add
Slide 17: FY2020 Asset-Light Strategy
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® FY2020 ASSET-LIGHT STRATEGY On 20 August 2019, DMPL announced DMFI’s divestiture of the following production facilities as part of its asset-light strategy: ▪ 2 closures: Sleepy Eye, Minnesota, and Mendota, Illinois Pr
Slide 18: Philippines
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® PHILIPPINES Market Share (#1) Market Share (#1) Market Share (#1) Packaged Pineapple Canned Mixed Fruit Canned and Carton Juices Market Share (#1) Market Share (#1) Tomato Sauce Spaghetti Sauce ▪ Del Monte is the marke
Slide 19: Philippines
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® PHILIPPINES ▪ Reversing a decline in FY2019, 1Q sales in the Philippines grew by 2% in peso terms and 4% in US dollar terms ▪ Retail sales grew by 4% in volume and 9% in peso sales value. Non-retail foodservice decline
Slide 20: Philippines - Fruits
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® PHILIPPINES - FRUITS Sustain growth momentum in Visayas and Mindanao region in FY2020 Aired starting Aired starting June 2019 July 2019 TV in Visayas and Mindanao TV Nationwide Translation: Meals made happier 20
Slide 21: Philippine Market – Culinary
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® PHILIPPINE MARKET – CULINARY ✓ Launch of the new 30-minute ✓ Launch of Quick n’ Easy’s new Mommadiskarte Gourmet Made Easy Campaign via TVC and relaunch of its Facebook campaign featuring 3 dishes page with almost 500k
Slide 22: Philippine Market – Culinary
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® PHILIPPINE MARKET – CULINARY ✓ Del Monte Spaghetti Sauce ✓ Del Monte Tomato Sauce Weekly advertising behind consumption packs with recipe suggestions ‘Flavours’ 22
Slide 23: S&W Asia
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® S&W ASIA ▪ Consumers moving towards less processed and more natural food: S&W expanding sales of S&W Sweet 16 fresh pineapple ▪ E-commerce and digital are growing with North Asia having the largest share of E-commerce
Slide 24: S&W Asia
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® S&W ASIA ▪ Sales of the S&W branded business in Asia and the Middle East grew strongly by 19% in 1Q ▪ Mainly driven by higher sales of fresh pineapple in North Asia ▪ Fresh sales, both branded and non-branded, improved
Slide 25: FieldFresh India
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® FIELDFRESH INDIA ▪ FieldFresh sales were up 11% in Rupee terms in 1Q due to higher Del Monte packaged product sales and FieldFresh-branded fresh sales ▪ DMPL’s share of loss in 1Q was US$0.2m, versus prior year quarter
Slide 26: National Scientist
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® NATIONAL SCIENTIST ▪ In August 2019, DMPL’s Independent Director Dr Emil Q Javier has been declared a National Scientist by the President of the Philippines ▪ The Order of the National Scientist is the highest honour g
Slide 27: Sustainability
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® SUSTAINABILITY ▪ Published DMPL’s FY2019 Sustainability Report* which includes: ✓ DMPL’s contribution to the 17 UN Sustainable Development Goals (SDGs) ✓ New section on Stakeholder Inclusiveness ▪ Del Monte Foundation
Slide 28: Outlook
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L I V E S . E VE RY DAY. ® OUTLOOK ▪ Barring unforeseen circumstances, the Group is expected to be profitable in FY2020 on a recurring basis (without one-offs). Certain one-off expenses are expected from streamlining of operations ▪ Major emphas