Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — Q1 2020 Earnings Presentation
13 slides from Fraser & Neave's earnings presentation, Feb 6, 2020
Slide 1: 1Q2020 Financial Highlights
1Q2020 Financial Highlights 06 February 2020
Slide 2: Important notice
Important notice Certain statements in this Presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual res
Slide 3: 1Q2020 Performance Highlights
1Q2020 Performance Highlights Strong Beverages and Dairies Thailand performances drove earnings growth • Group performance in the first quarter ended 31 December 2019 (“1Q2020”) • Broad-based growth drove Q1 top line performance; revenue grew 8.8% to $505.2 million • EBIT increased 7.5% to $76.3 mil
Slide 4: Group Financial Highlights
1Q2020 Group Financial Highlights Revenue Earnings before interest and tax (million) (million) $505.2 $76.3 ▲ 8.8% ▲ 7.5% Profit after tax EBIT Margin (million) (%) $58.3 15.1% ▲ 4.3% ▼ 19 bps Gearing1 Earnings per share (basic)3 (%) (cents) 13.3% 2.7 ▲100 bps2 ▲ 3.8% 1 (Borrowings less Cash and Ban
Slide 5: Revenue grew 8.8% to $505.2 million
1Q2020 Revenue grew 8.8% to $505.2 million Lifted by higher dairy and soft drinks sales; new brewery in Myanmar boosted top line By Business By Business ($) (%) $505m +8.8% $464m Dairies 61% Publg $505m & Print +9.9% 14% $308m $280m Beverages 25% By Geography +9.9% (%) $125m $113m Thailand 35% Other
Slide 6: Revenue | Beverages
1Q2020 Revenue | Beverages Revenue increased 9.9% vs LY, driven by earlier sell-in for Chinese New Year Beverages Malaysia Revenue – Lifted by earlier sell-in for Chinese New +9.9% Year, successful execution of festive NM $125m campaigns and rollout of new products +2.4% +47.2% $113m +4.7% Beverages
Slide 7: Revenue | Dairies
1Q2020 Revenue | Dairies Revenue growth driven by strong performance from Dairies Thailand Dairies Malaysia Revenue +9.9% – Revenue grew 4.1% on successful +14.6% +5.3% $308m trade execution despite intense $280m +4.1% Others competition in canned milk $55m $52m categories Dairies Thailand THAI $170
Slide 8: Revenue | Publishing & Printing
1Q2020 Revenue | Publishing & Printing • Revenue improved 2.7% Revenue • Contribution from Print Lab and Hallmark +2.7% Distribution, offset by shortfall from education publishing, book distribution and print sales in China $73m $71m 1Q19 1Q20 8 First quarter ended 31 December 2019
Slide 9: EBIT increased 7.5%
1Q2020 EBIT increased 7.5% Bolstered by higher soft drinks and Dairies Thailand sales 1Q19 1Q20 By Business EBIT EBIT By Business ($) Margin Margin (%) 21.7% 24.6% Publg & 15.3% 15.1% Print Dairies 0% 2.5% 5.0% 88% +7.5% +4. $76m 1Q19 1Q20 EBIT EBIT $76m $71m $69m $67m Margin Margin -2.9% Others 4%
Slide 10: EBIT | Beverages
1Q2020 EBIT | Beverages Earnings more than doubled on higher soft drinks sales EBIT Beverages Malaysia and +120.8% +62.7% Beverages Singapore $6m +40.9% NM -36.5% – Largely supported by higher sales as a result of earlier festive sell-in $3m Others1 – Higher sales and lower marketing 1Q19 MSIA SIN O
Slide 11: EBIT | Dairies
1Q2020 EBIT | Dairies Despite strong performance by Dairies Thailand, earnings fell 2.9%. Dairies Malaysia EBIT – EBIT impacted by higher input costs for dairy-based commodities and -2.9% packaging materials $69m $67m +11.6% Others $2m $1m Dairies Thailand $23m -32.3% -3.7% -64.1% Vinamilk $22m – EB
Slide 12: EBIT | Publishing & Printing
1Q2020 EBIT | Publishing & Printing • Loss of $0.3m in 1Q2020 due to EBIT • Lower education royalty income and lower $0.4m textbook sales in Singapore -$0.3m 1 Q1 9 1 Q2 0 12 First quarter ended 31 December 2019
Slide 13: Analyst and media contact: Jennifer Yu
Analyst and media contact: Jennifer Yu Head, Investor Relations T: (65) 6318 9231 E: jenniferyu@fngroup.com.sg Fraser and Neave, Limited