Century Pacific Food, Inc. · PSE:CNPF
Century Pacific Food — H1 2024 Earnings Presentation
29 slides from Century Pacific Food's earnings presentation, Aug 7, 2024
Slide 1: Nourishing Lives, Investing in the Future
Nourishing Lives, Investing in the Future CNPF 1H24 RESULTS PRESENTATION AUGUST 2024
Slide 2: Latest Financial Performance
LATEST FINANCIAL PERFORMANCE
Slide 3: 1H 2024 Financial Results Highlights
1H 2024 FINANCIAL RESULTS HIGHLIGHTS BRANDED OEM GROSS REVENUE NET INCOME REVENUE REVENUE MARGIN 1H +13% +7% +42% +210 +14% Growth year- bps on-year 37.7B 29.5B 8.2B 26.1% 3.6B 2Q Growth year- +10% +5% +36% +160 bps +12% on-year 19.6B 15.3B 4.3B 26.0% 1.9B 3
Slide 4: Topline Continues to Post Growth Amidst OEM Recovery and Branded Resilience
TOPLINE CONTINUES TO POST GROWTH AMIDST OEM RECOVERY AND BRANDED RESILIENCE 1H24 Revenue Breakdown Revenue Growth Split Quarterly Revenue Trend In PHP B In PHP B 13% YoY 8% QoQ Branded OEM 1H24 vs 1H23 2Q24 vs 1Q24 19.6 1.9 37.7 18.2 2.4 17% 22% 33.4 Current 17.0 16.7 +42% YoY +7% YoY Year 17.8 vs 1
Slide 5: OEM Topline Continued to Recover as Commodities Ease
OEM TOPLINE CONTINUED TO RECOVER AS COMMODITIES EASE OEM YoY Revenue Trend OEM Quarterly Revenue Trend In PHP B In PHP B 36% YoY 2Q24 vs 2Q23 42% YoY 1H24 vs 1H23 10% QoQ 2Q24 vs 1Q24 7% YoY 4.3 1H23 vs 1H22 8.2 3.9 3.6 3.7 6.2 3.2 3.1 3.0 Peak sales Resurgence in orders 5.8 2.6 2.6 Supply chain bot
Slide 6: Branded Segment Remained Resilient as Consumers Opt for Value for Money Goods
BRANDED SEGMENT REMAINED RESILIENT AS CONSUMERS OPT FOR VALUE FOR MONEY GOODS Branded YoY Revenue Trend Branded Quarterly Revenue Trend In PHP B In PHP B 7% QoQ 2Q24 vs 1Q24 7% YoY 15.3 1H24 vs 1H23 5% YoY 11% YoY 29.5 14.2 2Q24 vs 2Q23 1H23 vs 1H22 Trailing 13.9 14.6 2Q 2024 13.6 27.6 13.0 24.9 Tra
Slide 7: Consumers Are Learning to Cope with Inflationary Pressures
CONSUMERS ARE LEARNING TO COPE WITH INFLATIONARY PRESSURES Consumers are cautiously spending as inflation tapers, Value-seeking consumers are economizing How are consumers coping while sentiment remains low due to elevated rice prices and prioritizing spending 290 Prioritizing Quarterly FMCG Value-f
Slide 8: An All-Weather, Resilience-Focused Multi-Brand Portfolio
AN ALL-WEATHER, RESILIENCE-FOCUSED MULTI-BRAND PORTFOLIO Stable/improving market shares Keeping a relevant value proposition amidst varying market conditions Canned KEY SEGMENTS Value for Money Mass Market Affordable Premium Tuna 85% 85% #1 stable Dec '23 - Jun '24 Marine Corned Meat 52% 53% #1 +120
Slide 9: Bottomline Growth Closely Mirrored Rise in Sales as Gross Margin Expansion Reinvested in Opex
BOTTOMLINE GROWTH CLOSELY MIRRORED RISE IN SALES AS GROSS MARGIN EXPANSION REINVESTED IN OPEX Sustained Net Income Growth Margins Reflecting CNPF’s Reinvestment Strategy In PHP B Gross Margin 26.1% 24.0% +210bps Gross margin improves YoY as input 14% YoY 1H24 vs 1H23 costs move favorably Opex to Sal
Slide 10: Healthy Cash Generated from Operations Used for Debt Repayment and Higher Dividends
HEALTHY CASH GENERATED FROM OPERATIONS USED FOR DEBT REPAYMENT AND HIGHER DIVIDENDS 1H 2024 Cash Flows In PHP M Dividends of Php0.48 per share 2.1B debt payment, interest Increase in receivables and Capacity inventory offset expansion increase in payables CNPF ended 1H24 with a healthy cash position
Slide 11: Business Highlights & FY 2024 Outlook
BUSINESS HIGHLIGHTS & FY 2024 OUTLOOK
Slide 12: The Philippines, Our Center of Gravity, Posts Long-Term Growth Opportunities
THE PHILIPPINES, OUR CENTER OF GRAVITY, POSTS LONG-TERM GROWTH OPPORTUNITIES Consumption-driven economy with favorable demographics ~120m Population ~25 Median Age ~65% Labor Force ~83% Low income Households Participation Rate (<$2,800 annually) ~5% 20Y Average Majority of households belong to the b
Slide 13: Aligning Investments with Our Strategic Growth Pillars
ALIGNING INVESTMENTS WITH OUR STRATEGIC GROWTH PILLARS NEW PRODUCTS Branded Coconut, Condiments, Plant-Based, Refrigerated, & Pet Food Innovation pipeline, organic and inorganic opportunities, existing and adjacent categories FUTURE-PROOF MILK EMERGING Faster growth, building scale, challengers or c
Slide 14: Brand Building Activities to Boost Salience & Strengthen Brand Equity
BRAND BUILDING ACTIVITIES TO BOOST SALIENCE & STRENGTHEN BRAND EQUITY The Century Tuna Superbods 2024 Season A series of activities both on ground and online promoting health, fitness, and inclusivity Finals Night Reception 7M Views Php128M PR Value 31M Views • Launched biennial activation campaign
Slide 15: Brand Building and Demand Generating Activities to Support Growth
BRAND BUILDING AND DEMAND GENERATING ACTIVITIES TO SUPPORT GROWTH Promotional Bundles Communications for Value for Money Offerings & Deals in Retail 555 Tuna Campaign Birch Tree Fortified Campaign • In addition to value, highlighting consumer preference for 555 Tuna and nutritional credentials for B
Slide 16: Supporting Innovations and Market Development in Other Emerging Segments
SUPPORTING INNOVATIONS AND MARKET DEVELOPMENT IN OTHER EMERGING SEGMENTS Diversifying and Future-Proofing the Business Highlighting occasions Highlighting nutritional benefits Communications for unMEAT ready-to-eat pasta range and Asian line for Coco Mama usage of Hunt’s Pork and Beans Goodest Cat &
Slide 17: Embracing More Responsible and Sustainable Business Practices
EMBRACING MORE RESPONSIBLE AND SUSTAINABLE BUSINESS PRACTICES Balancing the Needs of Stakeholders & Thinking Win-Win Continue Century Tuna Saving Our Seas Program Explore opportunities to expand our solar capacity and to address plastic pollution and promote circular economy retrofit boilers in our
Slide 18: Additional 2024 Dividends at PHP 0.48/Share
ADDITIONAL 2024 DIVIDENDS AT PHP 0.48/SHARE 0.96 61% Total Payout vs FY23 Net Income 0.48 Additional Special 0.48 0.40 0.36 0.36 0.36 0.24 Special 0.24 Regular 2020 2021 2022 2023 2024 18
Slide 19: 2024 Preliminary Outlook
2024 PRELIMINARY OUTLOOK 2024 Outlook 2024 Growth Drivers Growth in the Topline low double digits • Demand for consumer staples expected to remain resilient • OEM recovery with easing commodities • Margin improvements to be reinvested in topline growth – innovations and demand generating activities
Slide 20: Key Takeaways
KEY TAKEAWAYS ON TRACK TO DELIVER LOW DOUBLE-DIGIT GROWTH SUPPORTED BY AN ALL-WEATHER PORTFOLIO Topline growth on Gross margin Reinvestment into the back of OEM expansion due to demand generation Exports recovery favorable leading to profit and consistent downtrend in input growth in line with Brand
Slide 21: Nourishing Lives, Investing in the Future
Nourishing Lives, Investing in the Future CNPF 1H24 RESULTS PRESENTATION AUGUST 2024
Slide 22: Annex
ANNEX
Slide 23: Other Financials
OTHER FINANCIALS
Slide 24: 1H 2024 Summarized P&L
1H 2024 SUMMARIZED P&L In PHP Mill 1H 2023 1H 2024 Change YoY Net Revenues 33,413 37,741 13% • Revenues grew 13% mainly driven by OEM Cost of Sales recovery 25,393 27,905 10% • Branded up 7% as demand remains resilient, Gross Profit 8,020 9,836 23% driven by essentials and staples nature of Operatin
Slide 25: 1H 2024 Summarized Balance Sheet
1H 2024 SUMMARIZED BALANCE SHEET In PHP Mill FY 2023 1H 2024 In PHP Mill FY 2023 1H 2024 Cash 5,050 2,820 Trade and Other Payables 10,452 13,432 Receivables 9,387 11,762 Inventory 16,902 18,784 Notes Payable - Current 2,877 777 Current Assets 34,556 37,593 Long-Term Loan 3,157 3,147 PPE 8,980 8,937
Slide 26: 1H 2024 Summarized Cash Flow
1H 2024 SUMMARIZED CASH FLOW In PHP Mill 1H 2023 1H 2024 • Increase in working capital as higher Profit before Tax 3,794 4,328 receivables and inventories offset higher Depreciation & trade and other payables Amortization 830 893 Working Capital Change (1,082) (2,106) • Strong cash generation suppor
Slide 27: CCC Stable vs YE 2023
*Working capital days CCC STABLE VS YE 2023 Working Capital Receivables Inventory Payables & Cash Conversion Cycle & Receivable Days & Inventory Days & Payable Days* 97 97 51 60 121 128 75 92 15,836 17,115 9,387 11,762 16,902 18,784 10,452 13,432 FY23 1H24 FY23 1H24 FY23 1H24 FY23 1H24 • Cash conver
Slide 28: Financial Ratios
FINANCIAL RATIOS 0.18 0.11 • Decrease in gearing ratio due to decrease in debt, comfortable levels Gearing (x) maintained FY23 - 1H24 0.03 0.03 • 1H24 back to net debt position Net Gearing (x) following first dividend payment FY23 - 1H24 2.50 2.53 • Current ratio slightly increased vs YE Current Rat
Slide 29: Ortigas Center, Pasig City, Philippines
Ortigas Center, Pasig City, Philippines investorrelations@centurypacific.com.ph +632 8633 8555 www.centurypacific.com.ph http://edge.pse.com.ph www.linkedin.com/company/century-pacific-food-inc-/ www.facebook.com/CenturyPacificFoodInc This document is highly confidential and being given solely for y