Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Q1 FY2024 Earnings Presentation
32 slides from Del Monte Pacific's earnings presentation, Sep 6, 2023
Slide 1: Del Monte Pacific 1Q FY2024 Results
Del Monte Pacific 1Q FY2024 Results 6 September 2023 1
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 typical
Slide 3: Contents
Contents ▪ Summary ▪ 1Q FY2024 Results ▪ Market Updates ▪ Sustainability ▪ Outlook 3
Slide 4: Notes to the Results
Notes to the Results ▪ 1Q FY2024 is from 1 May to 31 July 2023 ▪ 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: 1Q FY2024 Highlights
1Q FY2024 Highlights ▪ Del Monte Pacific (DMPL) Group sales grew by 13% to US$517m on higher USA and fresh pineapple sales, up by 18% and 23%, respectively ▪ The Group maintained leading market share positions across core products ▪ Demand increased for fresh pineapple in North Asia ▪ Strong consume
Slide 6: Outlook
Outlook ▪ The global environment remains unstable ▪ Remain vigilant in managing our operating expenses which include: ✓ packaging materials optimization; ✓ power and fuel initiatives; ✓ investments to improve efficiency, productivity and minimize wastage; ✓ product bundling initiatives in distributi
Slide 7: 1Q FY2024 Results Summary
1Q FY2024 Results Summary ▪ Sales of US$516.7m, +13% Sales % Change Americas +18 Philippines flat (in peso terms +5) International -7 India (equity accounted) -5.5 (in rupee terms +1.5) All figures below are vs prior year quarter on recurring basis. There was no one-off item this quarter but last ye
Slide 8: 1Q FY2024 Results – Reported Basis
1Q FY2024 Results – Reported Basis In US$m 1Q FY2023 1Q FY2024 Chg (%) Comments Turnover 456.6 516.7 +13.2 Higher sales in USA and fresh pineapple Gross profit 131.7 108.3 -17.8 Due to higher product costs Gross margin (%) 28.9 21.0 -7.9ppts Same as above EBITDA 70.0 51.1 -27.0 Same as above Lower o
Slide 9: 1Q FY2024 Turnover and Operating Profit Analysis
1Q FY2024 Turnover and Operating Profit Analysis Sales Operating 1.6% 2.4% Profit Americas 34.7% 28.9% 69.5% Asia Pacific 62.9% Europe Sales growth Comments Americas +18.3% ▪ Driven by higher branded retail sales which grew by 19% across key categories of canned vegetable, fruit, tomato, broth/stock
Slide 10: Higher Loans in 1Q FY2024
Higher Loans in 1Q FY2024 Debt level increased by US$568m from July 2022 to July 2023 due to: US$ m Series A-2 Preference Shares Redemption 100 Acquisition of Kitchen Basics 101 Increase in Working Capital (mainly DMFI’s Inventory) 368 With heightened emphasis on prudent financial management, we are
Slide 11: Market Updates
Market Updates 11
Slide 12: Del Monte Foods USA 1Q FY2024
Del Monte Foods USA 1Q FY2024 ▪ Sales of US$356.4m or 69% of Group sales; volume grew by 5% while sales improved by 18% driven by pricing actions and strong growth and development of our branded product portfolio in both traditional and emerging channels ▪ Retail branded volume rose 7.8% on strong d
Slide 13: USA Market Shares
USA Market Shares 22.6% +1.2pts 24.5% +3.8pts 29.9% +5.3pts Canned Vegetable (#1) Canned Fruit (#1) Fruit Cup Snacks (#2) 6.3% +0.6pt 7.5% -0.7pt Canned Tomato (#3) Broth (#2) Source for market shares: Nielsen RMS / Scantrack DMFI Custom DBs, Eq Vol share, Total xAOC, Latest 3M ending 29 July 2023 ▪
Slide 14: USA 1Q – Marketing Highlights
USA 1Q – Marketing Highlights JOYBA Summer Campaign Re-Launch of Fruit Refreshers line Earned Media coverage 14
Slide 15: USA 1Q – Marketing Highlights
USA 1Q – Marketing Highlights Back-to School at Retail – Amazon BTS Fruit Cup Snacks and Chobani Partnership 15
Slide 16: USA 1Q – PR Highlights
USA 1Q – PR Highlights San Francisco Business Times released their 2023 "Largest Food College Inn Bone Broth tested #1 and Beverage Manufacturers in the Take Root Organics was JOYBA partners with Lady Gaga's against competitors Greater Bay Area" list, and Del featured as product expert Born This Way
Slide 17: USA 1Q – Foodservice
USA 1Q – Foodservice New Business Growth Driving Pineapple Category ‘s Attributes through Distributor Conversions 17
Slide 18: DMPL ex-DMFI 1Q FY2024
DMPL ex-DMFI 1Q FY2024 ▪ Sales of US$167m, down 4% as strong exports of fresh pineapples were not enough to offset lower exports of processed products. ✓ Philippine sales of US$76m, +5% in peso terms but flat in US dollar terms due to the peso depreciation. Sales of packaged fruit, beverage and culi
Slide 19: Philippines – Market Shares
Philippines – Market Shares 96.4% +2.0pts 77.3% +3.8pts 39.3% +1.5pts Packaged Pineapple (#1) Canned Mixed Fruit (#1) RTD Juices ex foil pouches (#1) 85.4% +0.8pt 42.6% +0.3pt 13.0% -6.0pts Tomato Sauce (#1) Spaghetti Sauce (#1) Drinkable Yogurt, DM Vinamilk + Mr. Milk (#2) Source for Volume market
Slide 20: Philippines – Culinary and Fruit
Philippines – Culinary and Fruit Tomato Sauce - Spaghetti Sauce - Saucy Weekends Campaign Birthday Campaign Digital Pineapple Tidbits - Stand Up TV + Digital & Value bundles & Limited Edition Plates Promo Pouch Acceleration Program Quick ‘N Easy Meal Savers 20
Slide 21: Philippines – Beverage
Philippines – Beverage Fiber Enriched 100% Pineapple Juice – Nightly Fiber Habit Campaign Fit ‘n Right – Digital + 26 July event with publishers & foodie influencers FlipItRight Online Challenge with Yassi, in-store bundle pack, sampling Cleanse every night with Del Monte Pineapple Juice Fiber Enric
Slide 22: Philippines – Innovation
Philippines – Innovation Mr. Milk Nationwide New Mr. Milk Orange Flavor Del Monte Potato Crisp Price Rollback In-store Tie Up with Gardenia Bread National Launch of Singles Packs & Digital Campaign for Morning Snack Del Monte Potato Crisp Snacking Activation in Gaming/Toy Conventions 22
Slide 23: Philippines – Innovation
Philippines – Innovation Innovation accounts for 5% of total Philippine Sales Combined addressable market of these products is US$3.5bn Potato Crisp Del Monte Vinamilk Range Flavor Range: Flavor Range: Original, Spicy, IQ Smart Chocolate, Vanilla, Strawberry; Cheese, BBQ, 20g Yogurt Drink Strawberry
Slide 24: Philippines – Foodservice and Convenience
Philippines – Foodservice and Convenience Foodservice Industry on the path to Additional 7-Eleven stores (52) recovery despite inflationary pressures fueled growth ▪ Sales +25% vs prior year due to higher ▪ Revenue +16% vs prior year due to higher volume and pricing. This is 108% vs pre- volume. Thi
Slide 25: S&W Fresh - China
S&W Fresh - China ▪ S&W and its major distributor partner Goodfarmer held the first ever S&W Pineapple Festival in China. The festival aims to communicate S&W’s strong commitment to the Chinese market, showcase innovative products such as S&W Deluxe Pineapple and further strengthen its strategic par
Slide 26: S&W Fresh - Philippines
S&W Fresh - Philippines S&W Deluxe Fresh Pineapple was launched for the first time in the Philippines last July. It is now available in 5 stores under the Robinsons Group, starting with 1 Shopwise and 4 The Marketplace outlets in Metro Manila. 5 more stores under Robinsons will be added in 2Q FY2024
Slide 27: S&W Fresh – Market Shares
S&W Fresh – Market Shares S&W Fresh North Asia Market Share CY 2021 - YTD June Actuals 60% China, 54% 50% 40% North Asia , 38% Korea, 32% 30% 20% Japan, 18% 10% 0% CY'21 CY'22 YTD CY'23 27
Slide 28: S&W Frozen
S&W Frozen S&W Pineapple Stick is now in Taiwan! S&W Pineapple Stick for consumption as a popsicle was launched in 7-Eleven Taiwan in June 2023. The product is now available in 3,400 stores. 28
Slide 29: International Innovation
International Innovation Innovation now accounts for 19% of Total International Sales Total sales potential of these products is US$100m NICE TECH Frozen Snacks US Canada Europe Middle East Saudi Japan Japan China Hong Kong Taiwan Singapore Del Monte McDonald’s Lamex/KFC McDonald’s Arabia 7-Eleven 7
Slide 30: Del Monte India
Del Monte India ▪ B2C business (half of overall business) grew sales by 7%, ahead of industry growth driven by Ecommerce which rose 16%, while General Trade increased by 6% and Modern Trade by 3% ▪ B2B Foodservice business sales grew by 6% ▪ Despite high inflation, there was strong improvement in co
Slide 31: Sustainability
Sustainability Water Conservation Renewable Energy Waste Management Sustainability Report Energy Savings DMPI utilizes drones to In FY2023, 19% of Diverted post- DMPL published its reduce water usage by Bugo manufacturing consumer plastic FY2023 Sustainability 90% versus the current facility’s elect
Slide 32: Outlook
Outlook ▪ The global environment remains unstable ▪ Remain vigilant in managing our operating expenses which include: ✓ packaging materials optimization; ✓ power and fuel initiatives; ✓ investments to improve efficiency, productivity and minimize wastage; ✓ product bundling initiatives in distributi