Sappe Public Company Ltd · SET:SAPPE
Sappe Public — Q3 2024 Earnings Presentation
55 slides from Sappe Public's earnings presentation, November 2024
Slide 1: Q3 2024 Financial Performance
Q3 2024 Financial Performance SAPPE PUBLIC COMPANY LIMITED 1
Slide 2: Agenda
AGENDA 1. SAPPE Overview 2. Financial Performance Q3’2024 3. Business Updates 4. SAPPE’s Sustainability 2
Slide 3: SAPPE Overview
SAPPE Overview 3
Slide 4: Who We Are
VISION Becoming the preferred and trusted global brand driven WHO WE ARE by a team of passionate and synergistic top talents passionately working happily together in a dynamically innovative workplace. มุง่ สูแ่ บรนด์ระดับโลกที่นา่ เชื่อถือ ด้วยองค์กรที่สร้างสรรค์อย่างไม่หยุดนิ่ง ร่วมกันกับทีมที่มีค
Slide 5: Our Journey to Global Brand
Our Journey to Global Brand Internationalization Phase 2024 Succeed in UK 2022 - 2023 Announced K-Pop Sappe x Power Root boy band 2021 Berhad, Malaysia “SEVENTEEN” as its Growth Phase “First Global Brand Sappe x Succeed in South Ambassador” for 2019 Workpoint Korea and France with Korea & France Mog
Slide 6: Sappe Structure
Sappe Structure Sappe PCL SAPPE HOLDING (100%) ALL COCO (51%) Domestic International OEM Danone Sappe (25%) Own Brands Own Brands M-Intelligence (16.2%) Sappe Philippines Corporation (100%) Distributor Distributor Dormant Company • Sappe HK • Sappe HK Trading Collaborate • Sappe China 6
Slide 7: Product Categories
Product Categories Large Portfolio with Market Leading Brands and Products Juice Drinks Functional Drinks Functional Powders Healthier Snacks Supplements & Others Unique and refreshing juices Range of products targeting Instant powders for dietary Snacks with healthy Other innovative products – beau
Slide 8: Innovation is the Core of Our DNA
Innovation is the Core of Our DNA 3 Pillars of Innovation Strategies In-house Innovation Business Partnership InnoStudio Internal division to create innovative Relationship with leading enterprises Innovative ideas x Local goodness products Local Creativity goodness Q1’2024: 6 New Products Q2’2024:
Slide 9: Financial Performance Q3'2024
Financial Performance Q3’2024 9
Slide 10: Q3'24 Key Financial Highlights
Q3’24 Key Financial Highlights Q3’24 Total Revenue Q3’24 Gross Margin 1,635 MB 46.0% -3.8% YoY -0.2% pts YoY Q3’24 SG&A (%) Q3’24 Net Profit 27.5% 26.9% 23.4% 26.9% 300 MB +3.6% pts YoY -5.9% YoY 10
Slide 11: Revenue Breakdown & Net Profit
Revenue Breakdown & Net Profit Revenue Net Profit 18% 19% 17% 17% 24% 82% 81% 83% 83% 76% 4,844 5,398 1,667 1,996 1,566 +11.4% YoY IB +10.1% YoY DM +17.7% YoY 1,200 21.0% +17.4% YoY 20.6% 20.5% 1,000 20.0% 800 19.7% 4,376 19.2% 19.5% 3,975 -6.0% YoY 600 IB -13.2% YoY 1,063 19.1% 19.0% DM +27.7% YoY
Slide 12: Cost of Goods Sold by Quarter
Cost of Goods Sold by Quarter Utilization Rate (Beverage) USD/THB USD/THB USD/THB USD/THB USD/THB Q1'23 = 33.8 Q2'23 = 34.2 Q3'23 = 34.8 Q4'23 = 35.8 Avg. Y23 = 34.5 Q1'24 = 35.3 Q2'24 = 36.5 Q3'24 = 34.5 Q4'24 = ....... Avg. Y24 = 35.5 -0.7 pts QoQ -1.0 pts QoQ +1.1 pts QoQ -2.9 pts YoY -2.6 pts Yo
Slide 13: SG&A
SG&A Selling Expenses Admin Expenses +2.8% pts YoY +1.5% pts YoY 450 9.4% 10.0% 1,200 25.0% 400 9.0% 1,000 971 350 7.5% 7.4% 8.0% 20.0% 18.0% 17.8% 7.0% 300 7.6% 800 734 306 16.0% 17.5% 7.2% 6.0% 15.0% 250 15.1% 13.4% +12.8% YoY 12.0% 600 193 12.3% 12.1% 200 409 +20.6% YoY 5.0% 362 4.0% 11.2% 355 10
Slide 14: Q3'2024 Million Baht
Q3’2024 100 1,566 Million Baht COUNTRIES TERRITORIES 14
Slide 15: 9M'2024 Million Baht
9M’2024 100 5,398 Million Baht COUNTRIES TERRITORIES 15
Slide 16: Q3'2024 (YoY) Top Line Growth by Regions
Q3’2024 (YoY) TOP LINE GROWTH BY REGIONS International Business Top 3 Contribution by Countries : Europe Q3’2024 -43.6% ME & 1,566 Million Baht Others -5.4% America Asia +79.7% -2.3% Thailand +27.7% 16
Slide 17: 9M'2024 (YoY) Top Line Growth by Regions
9M’2024 (YoY) TOP LINE GROWTH BY REGIONS International Business Top 3 Contribution by Countries : Europe 9M’2024 -1.0% ME & 5,398 Million Baht Others +32.9% America Asia +50.6% +3.9% Thailand +17.7% 17
Slide 18: Business Updates
Business Updates 18
Slide 19: International Markets
INTERNATIONAL MARKETS 19
Slide 20: International Business Journey
International Business Journey 01 02 03 Trading Model Rising Star model Consumer Market (Gems) • Rebate scheme • Expand coverage • Consumer engagement • Minimize investment • In-depth channel • Brand Love • Trade scheme vs Availability, • Brand of Choice Visibility, Affordability 20
Slide 21: Champion Product
Champion Product • Fruit flavored drink with Nata de coco • Full of extra-large Nata de coco cubes • Variety of choices Naturally Yours with Aloe Vera Cube 21
Slide 22: Overseas Availability
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Slide 23: Zone: Asia
Zone: Asia Sales 586.2 Million Baht Growth -2.3% YoY ❑ Asia Contribute 37.4% in Q3’2024 Taiwan Hong Kong ❑ The Asian market faced challenges in South Korea and Indonesia, resulting in a slight decline in sales. In contrast, the Philippines Philippines and Other countries have shown strong results. T
Slide 24: Channel Contribution
Key Countries KOREA Market PHILIPPINES Market INDONESIA Market Channel Contribution 24
Slide 25: Mogu Mogu in Stores & Marketing Activities
Mogu Mogu in Stores & Marketing Activities 25
Slide 26: Mogu Mogu Marketing Activities
Mogu Mogu Marketing Activities 26
Slide 27: Mogu Mogu in Stores & Marketing Activities
Mogu Mogu in Stores & Marketing Activities 27
Slide 28: Zone: Europe
Zone: Europe Sales 281.8 Million Baht Growth -43.6% YoY ❑ Europe Contribute 18.0% in Q3’2024 ❑ The European market declined this quarter, primarily driven by the UK, where 2024 stock weight has been high, mainly due to a delay of outlet expansion plan in Modern Trade chains. Furthermore, the markets
Slide 29: Mogu Mogu France Market
France Market Mogu Mogu New Superstar Fruit Juice Drink Channel Contribution 29
Slide 30: Mogu Mogu in Stores & Marketing Activities
Mogu Mogu in Stores & Marketing Activities 30
Slide 31: Mogu Mogu in Stores & Marketing Activities
Mogu Mogu in Stores & Marketing Activities 31
Slide 32: Zone: Middle East & Others
Zone: Middle East & Others Sales 188.2 Million Baht Growth -5.4% YoY ❑ Middle East & Others Contribute 12.0% in Q3’2024 LIBYA ❑ Although the sales in the Middle East declined a bit in Q3’2024, but topline of 9M’2024 grew by 32.9%. Given some uncertainties about port closure in some specific countrie
Slide 33: Mogu Mogu in Stores & Marketing Activities
Mogu Mogu in Stores & Marketing Activities 33
Slide 34: Mogu Mogu in Stores & Marketing Activities
Mogu Mogu in Stores & Marketing Activities 34
Slide 35: Zone: America
Zone: America Alaska Sales 137.8 Million Baht Growth 79.7% YoY ❑ America Contribute 8.8% in Q3’2024 ❑ America market growth was driven by penetrating to greenfields area in major mainstream chain market. With the significant growth, also listed products in some key mainstream channel in USA and Cana
Slide 36: Mogu Mogu in Stores & Marketing Activities
Mogu Mogu in Stores & Marketing Activities 36
Slide 37: Domestic Market
Domestic Market 37
Slide 38: Marketing Activities
M A R K E TIN G ACTIVITIE S Copyright © 2024 Sappe Public Company Limited. All rights reserved.
Slide 39: Marketing Activities: Gain More Reach
M A R K E TIN G ACTIVITIE S GAIN MORE REACH Drive online awareness to 7-11 Reach : 8.4M Increase visibility all channels DURBELL BIG C 7-11 39
Slide 40: Marketing Plan
MARKETING PLAN Q3’ 2024 Friend of B’lue School Tour Social Media Post Bombarding via TikTok influencer O2O Activities Youtube Tie-in School Tour x What the duck 40
Slide 41: e-Commerce Best Seller
e-Commerce #Best Seller Special Premium gift x Happy Sunday (Online Exclusive) Collaboration Platform’s visibilities / Co-campaigns Influencer review / Own’s contents 41
Slide 42: Outlook: ALL COCO Q3'2024
OUTLOOK : ALL COCO Q3’2024 Revenue Net Profit 76% 80% 84% 80% 84% 211 328 80 106 134 67% YoY 55% YoY 27% QoQ Total Revenue from selling goods in Q3’2024 was at 134.4 mb or +67% YoY, from Industrial + 67%, Shop&Retail +68%, OEM&Other +47% 42
Slide 43: Production Facility
Production Facility State-of-the-art Production Facility to Support Growth Klong 13 factory Projects under construction 2 Manufacturing buildings Utilization rate: New manufacturing 50%* 5 7 plant & +8,500 sqm Beverage lines Powder filling lines warehouse space in TH 3 In-house PET 2 new production
Slide 44: BOI Privilege
BOI Privilege Tax Privilege approved by BOI with value of THB 274.85 million for 5 years 44
Slide 45: Target Growth 2022-2026
Target Growth 2022-2026 Sales 9M’2024 REVENUE Growth 10,000 +11.4% YoY MB. 45
Slide 46: 2025 Outlook
2025 Outlook INTERNATIONAL BUSINESS DOMESTIC MARKET Brand Globalization: Korea First Grow base brands Strategic channel Expansion GROWTH NPD focused Diversify portfolio +15-20% Collaboration YOY Future Growth Future Growth 46
Slide 47: SAPPE's Sustainability
SAPPE’S Sustainability 47
Slide 48: Sappe Sustainable Policy
Sappe Sustainable Policy Economic Social Environment Build Sustainable Economic Promote Quality of Life of Our Promote Sustainable Environment Growth Key Players to Grow Together with Innovation and Technology Good Governance
Slide 49: We Better People's Lives Through Our Innovative Spirit
Sustainability Framework We Better People’s Lives Through Our Innovative Spirit
Slide 50: Environment
Climate Action Affordable & Clean Energy Solar Floating on 21,904.30 sq.m. of treatment wells behind SAPPE and 21,362 sq.m. of Solar Rooftop are part of efforts to Environment reduce greenhouse gas emissions due to global warming and climate change that large corporations are currently focusing on.
Slide 51: Sappe Packaging
Sappe Packaging Apart from continuously launching innovative products, we are always seeking new ways to make our operations better for the planet. We've made progress by adopting packaging Mingyu | Seventeen solutions based on the Circular Economy, contributing to sustainability and the fight again
Slide 52: Sustainable Packaging & Eco Design
Sustainable Packaging & Eco Design
Slide 53: Partnerships for the Goals
gasur SF, keer Vid Botties | PARTNERSHIPS, FOR THE GOALS
Slide 54: Q&A
Q&A 54
Slide 55: www.sappe.com
WWW-.SAPPE.COM ola al