Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — FY2015 Earnings Presentation
23 slides from Del Monte Pacific's earnings presentation, Jun 29, 2015
Slide 1: 4Q and FY2015 Results
4Q and FY2015 Results 29 June 2015 Del Monte Pacific Limited
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 typically
Slide 3: Contents
Contents • Notes to the Results • 4Q FY2015 Results • FY2015 Results • Outlook • Market Updates 3
Slide 4: Notes to the 4Q FY2015 Results
Notes to the 4Q FY2015 Results 1. DMPL changed its financial-year end to 30 April from 31 December to align with that of its US subsidiary, Del Monte Foods, Inc (DMFI). The fourth quarter of the Company is now 1 February to 30 April. 2. DMFI’s financial results have been consolidated in DMPL’s finan
Slide 5: DMPL 4Q FY2015 Results Summary
DMPL 4Q FY2015 Results Summary • Achieved sales of US$528m, with US$423m contributed by Del Monte Foods, Inc (DMFI) • Sales of DMFI grew by 7% versus year ago (pro-forma same quarter basis) • Sales of Del Monte in the Philippines and S&W in Asia Pacific rose more than 50% • Realised Group EBITDA of
Slide 6: DMPL 4Q FY2015 Non-Recurring Expenses
DMPL 4Q FY2015 Non-Recurring Expenses DMPL generated an EBITDA of US$22m but incurred a net loss of US$14.1m primarily due to non-recurring expenses amounting to US$8.9m, after tax EBITDA impact Bottom line impact1 1. ERP implementation at DMFI2 US$9.8m US$5.4m 2. Venezuela write-off3 US$7.3m US$4.1
Slide 7: DMPL 4Q FY2015 Results
DMPL 4Q FY2015 Results 4Q FY 4Q FY In US$m Chg (%) Comments 2014 2015 Consolidation of DMFI’s sales Turnover 364.0 528.2 +45.1 of US$423m (IFRS) and strong performance in Asia Gross profit 34.1 82.0 +140.5 Same as above Prior year impacted by Operating profit/(loss) (45.3) 7.5 +116.5 acquisition-rel
Slide 8: DMPL ex DMFI 4Q FY 2015 Results
DMPL ex DMFI 4Q FY 2015 Results* 4Q FY 4Q FY In US$m Chg (%) Comments 2014 2015 Higher Philippines and S&W Turnover 78.9 121.7 +54.2 sales Gross profit 8.0 24.4 +206.0 Higher sales Prior year loss is mainly due to Operating profit/(loss) (9.2) 9.7 +205.5 lower Philippine income due to lower sales Fi
Slide 9: 4Q FY 2015 Turnover Analysis
4Q FY 2015 Turnover Analysis 80% Americas 18% Asia Pacific Europe 2% Americas +43.4% • Due to the consolidation of DMFI’s results with sales of US$423m (IFRS) Asia Pacific +56.8% • Strong sales in Del Monte in the Philippines and S&W in Asia and the Middle East Europe +20.3% • Due to favourable pric
Slide 10: DMPL FY2015 Results Summary
DMPL FY2015 Results Summary • Achieved sales of US$2.2bn, much higher than prior year, with US$1.7bn contributed by DMFI • Sales of DMFI grew by 5% versus year ago (proforma same period basis) • Sales of Del Monte in the Philippines rose 19% • Sales of S&W in Asia and the Middle East rose 17% • Real
Slide 11: DMPL FY2015 Non-Recurring Expenses
DMPL FY FY2015 Non-Recurring Expenses DMPL generated an EBITDA of US$95.7m and incurred a net loss of US$38.0m mainly due to acquisition-related and non-recurring expenses worth US$62.6m, after tax EBITDA impact Bottom line impact1 1. Inventory step-up2 US$44.3m US$24.6m 2. ERP implementation at DMF
Slide 12: DMPL FY2015 Results
DMPL FY2015 Results In US$m FY 2014 FY 2015 Chg (%) Comments Consolidation of DMFI’s sales Turnover 743.3 2,159.4 +190.5 of US$1.7bn (IFRS) and strong performance in Asia Gross profit 120.9 389.9 +222.6 Same as above Prior year impacted by Operating profit (33.6) 44.2 +231.5 acquisition-related expe
Slide 13: DMPL ex DMFI FY 2015 Results
DMPL ex DMFI FY 2015 Results* In US$m FY 2014 FY 2015 Chg (%) Comments Higher Philippines and S&W Turnover 458.3 506.9 +10.6 sales Gross profit 94.7 113.1 +19.4 Higher sales Prior year loss is mainly due to Operating profit 33.5 52.0 +55.2 lower Philippine income due to lower sales Finance inc/(exp)
Slide 14: Outlook for FY2016
Outlook for FY2016 1. FY2015 was a year of transition, integration, and strengthening the core business. DMPL successfully laid a solid foundation from which it will execute its growth plans in the coming year. 2. Without the acquisition and non-recurring expenses, DMPL looks forward to a sustained
Slide 15: Del Monte Foods USA
Del Monte Foods USA • On a proforma same quarter basis, DMFI’s 4Q sales including Sager Creek grew by 7% to US$423m • Full year sales including Sager Creek were up 5% to US$1.7bn • Initiatives generated positive results: Reverting to competitive pricing levels Reintroducing the well-recognised c
Slide 16: Del Monte Foods USA
Del Monte Foods USA Accomplishments in FY2015: • Grew market share across all key retail segments • Strengthened partnership with key retailers through investments in effective marketing and trade promotion • Transitioned off the Transition Service Agreement or TSA with the seller in a substantially
Slide 17: Easter promotion, leveraging PR and Social Media
Easter promotion, leveraging PR and Social Media Through this focus, we created a Pinterest-based promotion inviting Heavy Users to pin #10MINUTEWOW recipes Through this focus, we created a Pinterest-based promotion inviting Heavy Users to pin #10MINUTEWOW recipes Pin at least one #10MINUTEWOW dish
Slide 18: Walmart DM/Tyson 4Q Shopper Marketing
Walmart DM/Tyson 4Q Shopper Marketing SHOPPING & SELECTION DEMAND CREATION Tear Pads at Veg Shelf Delish Magazine Jan/Feb—2,000 Polybagged on Good Walmart Housekeeping & other Supercenters women’s magazine in Walmart Cross-Ruff IRC on Tyson Chicken Jan/Feb—1,000 Walmart Supercenters EXPERIENCE In-St
Slide 19: Walmart Diced Mango 4Q Shopper Marketing
Walmart Diced Mango 4Q Shopper Marketing SHOPPING & SELECTION DEMAND CREATION National FSI Hispanic markets Walmart “Money Wallet” Joint Promo with Coupon Tie-in with #1 Hispanic Film BOOK OF LIFE In-Store Sampling Joint Demos Tie-in with Avocados de Mexico EXPERIENCE Mango salsa & guacamole 810 sto
Slide 20: Del Monte Philippines
Del Monte Philippines • The Philippine market finished strong with double-digit growth across all key measures, sustaining gains from consumption-building initiatives across categories, with broader product distribution and superior in-store presence • Full year sales were up 19% in the Philippines
Slide 21: S&W Asia and the Middle East
S&W Asia and the Middle East • S&W branded business sales in Asia and the Middle East grew by 59% and 17% in 4Q and full year, respectively • Robust sales from both the fresh and packaged segments • China, Japan and the Middle East generated much higher sales • Started shipping Canned Fruit Cocktail
Slide 22: S&W Asia and the Middle East (cont'd)
S&W Asia and the Middle East (cont’d) S&W Saudi Arabia – Launch of Four Seasons in 1L pouch in Saudi Arabia for Jollibee’s newest juice variant S&W Israel - 100% S&W Apple Juice launched in May 2015 in Israel (produced by FieldFresh JV factory in India) S&W Israel - Outdoor trade sampling held last
Slide 23: FieldFresh India
FieldFresh India • DMPL’s share of loss in the FieldFresh joint venture in India for 4Q was US$0.5 million from US$0.7 million in the prior year period • For full year, share of loss was much lower at US$2.4m from US$4.3m • FieldFresh’s 4Q sales +10% with the Del Monte branded packaged sales +16% •