Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Q2 2012 Earnings Presentation
19 slides from Del Monte Pacific's earnings presentation, Aug 8, 2012
Slide 1: Second Quarter and First Half 2012 Results
Del Monte Pacific Limited Second Quarter and First Half 2012 Results 8 August 2012 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these f
Slide 3: Contents
Contents Executive Summary 2Q 2012 Results 1H 2012 Results Market Updates Credit Standing Bonus Issue Dividend Outlook 3
Slide 4: Executive Summary
Executive Summary DEL MONTE PACIFIC DELIVERS SOLID SECOND QUARTER GROWTH • Second quarter sales grew 13% to US$109m • Growth driven by branded sales of Del Monte in the Philippines and S&W in Asia Pacific • Second quarter net profit rose 17% to US$6m • Bonus issue proposed • 75% of first half net pr
Slide 5: Second Quarter 2012
Second Quarter 2012 2Q 2Q Chg In US$m Comments 2011 2012 (%) Higher sales due to S&W branded Turnover 96.5 108.9 +12.9 business and the Philippine market Gross profit 22.9 27.0 +17.9 Higher volume and better sales mix Higher A&P spend as a result of Operating profit 9.8 9.0 -8.6 timing Finance inc/(
Slide 6: 2Q Turnover Analysis
2Q Turnover Analysis Others 30% Asia Pacific E&NA 59% 11% Asia +11.4% • Strong sales of fruit juices in the Pacific Philippines E&NA -14.8% • Lower demand of fruits in can, plastic cup and aseptic bag, and lower pineapple juice concentrate sales in the USA Others +32.1% • Strong 66% sales growth of
Slide 7: Philippine Market 2Q 2012 Updates
T Philippine Market 2Q 2012 Updates • 2Q Philippine sales of juices, processed fruits and culinary products were up • Del Monte 100% Pineapple Juice’s positioning as a daily health maintenance drink was further underlined by the successful advertising campaign behind its Heart Smart juice variant fo
Slide 8: S&W 2Q 2012 Updates
T S&W 2Q 2012 Updates • Deepened penetration in new markets of Japan for fresh product and Middle East for processed product • New distributor for Pacific Islands have started distribution in Guam and Papua New Guinea S&W fresh pineapple sampling in Korea and Singapore
Slide 9: India 2Q 2012 Updates
T India 2Q 2012 Updates • Higher sales in the fresh exports business under the FieldFresh brand • Higher margins in the processed foods business under the Del Monte brand • Lower equity loss of US$1.5 million from US$2.6 million, in line with expectation
Slide 10: 2Q Margins
2Q Margins Gross margin Better sales mix % Margin Operating margin 30 Higher A&P spend 23.7 24.8 Net margin 20 Lower equity loss in Indian affiliate 10.2 8.3 10 5.3 5.5 0 Gross margin Operating Net margin margin 2Q11 2Q12 10
Slide 11: 2Q Cash Flow Variance Analysis
2Q Cash Flow Variance Analysis Additional Investment in 1Q12 Operations Working Cap Tax Capex FieldFresh Others 2Q12 -US$120.2m -US$123.6m Net Debt Net Debt -6.30m -2.0m +12.9m -2.5m -1.3m -4.2m
Slide 12: First Half 2012
First Half 2012
Slide 13: First Half 2012
First Half 2012 1H 1H Chg In US$m Comments 2011 2012 (%) Higher sales due to S&W branded Turnover 165.8 183.6 +10.8 business and the Philippine market Gross profit 38.1 44.6 +17.2 Higher volume and better sales mix Higher margins and lower operating Operating profit 14.2 17.6 +24.2 expenses Finance
Slide 14: 1H Turnover Analysis
1H Turnover Analysis Others 31% Asia Pacific 57% E&NA 12% Asia +7.6% • Strong sales of fruit juices in the Pacific Philippines E&NA -14.3% • Lower demand of fruits in plastic cup and aseptic bag, and lower pineapple juice concentrate sales in the USA Others +33.0% • Strong 57% sales growth of the S&
Slide 15: 1H Margins
1H Margins Gross margin Better sales mix % Margin 30 Operating margin 24.3 Higher gross margin 23.0 Net margin 20 Lower equity loss in Indian affiliate 8.6 9.6 10 5.7 4.0 0 Gross margin Operating margin Net margin 1H11 1H12 15
Slide 16: Credit Standing
Credit Standing Loan utilisation: only 40% of bank credit lines Loan Mix: 67% Peso and 33% US$ 86% Short term and 14% Long term Gearing and Coverage Ratios Net debt equity ratio = 53% Interest cover = 14x 16
Slide 17: Bonus Issue
Bonus Issue • The Board is also proposing a bonus issue to its shareholders on the basis of two (2) bonus shares for every ten (10) existing ordinary shares in the capital of the Company • Rationale is to increase liquidity of the shares in the market and to reward shareholders for their continuing
Slide 18: Dividend
Dividend Dividend Book Closure Payment Dividend/ Payout Ratio Date Date Share Interim 21 Aug 2012 5 Sept 2012 US$0.0072 75% of 1H 2012 net profit US cents 3 2.56 US cents 1.91 2 1.10 0.79 2H:1.45 1 1H: 0.72 1H: 0.46 0 2008 2009 2010 2011 1H 2012 18
Slide 19: Outlook
Outlook • The branded Del Monte and S&W businesses in the Philippines and in Asia Pacific continue to sustain their robust performance through deeper market penetration. • These offset weakness in the global export markets in light of significantly reduced pineapple concentrate prices. • Barring unf