Universal Robina Corp. · PSE:URC
Universal Robina — FY2023 Earnings Presentation
18 slides from Universal Robina's earnings presentation, Mar 14, 2024
Slide 1: Full Year CY2023 Unaudited Results Investor Briefing
Full Year CY2023 Unaudited Results Investor Briefing March 14, 2024 Irwin C. Lee Pancho M. Del Mundo Jose Miguel T. Manalang President and CEO Chief Investments, Strategy, and Corporate Strategy and Investor Relations Director Services Officer
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Universal Robina Corporation (URC) and plans and objectives of the management of URC. Such forward looking statements involve known and unknown risk
Slide 3: Executive Summary
Executive Summary • Net Sales for 2023 ended at Php158.4 billion, up 6% against a high 2022 base of 28% growth. Topline recovery for Branded businesses continued quarter-on-quarter, offsetting Q4 sugar price decline. • Operating Income for 2023 ended at Php17.4 billion, up another 14% on top of 2022
Slide 4: Inflation and elevated key inputs were a challenge in 2023
10.0 0.0 2.0 4.0 6.0 8.0 -2.0 Dec ‘22 Jan Feb PH Mar Apr TH May Jun VN Jul MY Aug Economic downturn Increasing food prices Sep ID Top concerns among APAC consumers Oct consumers; rising costs remain a top concern Increasing utility bills (electricity, gas, heating) Inflation has slowed down but cont
Slide 5: Total URC
Total URC SALES EBIT NET INCOME In billion pesos In billion pesos In billion pesos 14.5 12.8 12% 149.9 158.4 6% 17.4 14% 15.2 11.9 12.6 6% 2022 2023 2022 2023 2022 2023 Core NI • Total revenue up 6% for the • Operating income continued to • Net income down 12% on higher year, driven by the double di
Slide 6: BCF Philippines
BCF PHILIPPINES Most category performances up, driven by Snacks and Ready-to-Drink Beverages • Growth seen across most categories with some brands posting double digit increases, helping offset challenged 75.6 3% segments SALES 73.6 In billion pesos • Exit market shares continue to improve vs. annua
Slide 7: New emerging segments delivered stellar growth, mitigating slower performance of key brands
New emerging segments delivered stellar growth, mitigating slower performance of key brands RTD Beverages outside of Tea growing >30%, >20% growth outside of the top 5 brands getting a bigger share of throat in the Snacks category #1 in Flavored Coffee Mixes; Leveraging on brand strength to expand i
Slide 8: BCF International
BCF INTERNATIONAL Profits continue to outpace topline growth, expanding margins considerably • International Sales up +2% vs. LY, driven by continued growth of Vietnam and Malaysia Lorem ipsum 32.3 32.8 2% SALES • Thailand and Indonesia have recovered post price In billion pesos correction, showing
Slide 9: Core growth supported by new legs in International
Core growth supported by new legs in International Double-digit growth of C2 in VN despite the challenging Organic business growing +8% vs. LY; Biscuits reclaiming environment; now the #1 brand in Urban VN market leadership and Snacks posting a +22% increase vs. LY Urban - Top 3 brands – Value % sha
Slide 10: Agro-Industrial and Commodities
AGRO-INDUSTRIAL AND COMMODITIES Stellar top and bottom line growth driven by higher volumes, favorable sugar prices, and Pet Food • AIG outperformance driven by strong volume and value growth; Pet Food up 27%, other Feeds up 16% 48.8 16% • Commodities growth driven by Flour volumes and SALES 42.1 in
Slide 11: Double-digit CAGR of Animal Feeds segment and successful entry into Pet Food
Double-digit CAGR of Animal Feeds segment and successful entry into Pet Food +17% CAGR 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Animal Feeds Pet Food +13% +40% CAGR CAGR
Slide 12: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash and Financial Debt Gearing Ratio In billion pesos 0.20 0.23 23.2 26.7 14.2 13.3 CY 2022 CY 2023 CY 2022 CY 2023 Cash + Financial Assets at FVPL + AFS Financial Debt • Increase in financing cost due to higher Cash Position interest rates In billion pesos • CAPEX incre
Slide 13: Executive Summary
Executive Summary • Net Sales for 2023 ended at Php158.4 billion, up 6% against a high 2022 base of 28% growth. Topline recovery for Branded businesses continued quarter-on-quarter, offsetting Q4 sugar price decline. • Operating Income for 2023 ended at Php17.4 billion, up another 14% on top of 2022
Slide 14: Thank you!
yy Thank you!
Slide 15: Income Statement
Income Statement CY 2023 CY 2022 (Php Millions) YoY (Unaudited) (Audited) NET SALES Lorem ipsum Cost of Sales 158,367 115,333 149,904 110,686 6% 4% GROSS PROFIT 43,035 39,217 10% Operating Expense -25,682 -23,994 7% OPERATING INCOME 17,352 15,224 14% Equity in net income of JVs -287 -379 Finance cos
Slide 16: Balance Sheet
Balance Sheet CY 2023 CY 2022 (Php Millions) (Unaudited) (Audited) Cash & cash equivalents (including Financial assets at FVPL and 13,311 14,191 FVOCI) Other current assets 75,850 66,069 Property, plant, and equipment 62,578 60,117 Other noncurrent assets 28,304 29,576 TOTAL ASSETS 180,043 169,954 C
Slide 17: Divisional Financials
Divisional Financials SALES EBIT EBIT MARGIN (Php Millions) CY 2023 CY 2022 YoY CY 2023 CY 2022 YoY CY 2023 CY 2022 bps Branded Consumer Foods 109,615 107,767 2% 11,909 11,115 7% 10.9% 10.3% 55 Philippines 75,599 73,639 3% 8,759 8,427 4% 11.6% 11.4% 14 International 32,792 32,297 2% 3,285 2,603 26%
Slide 18: Market Shares
Market Shares Philippines Thailand MARKET MARKET CATEGORY #1 #2 #3 CATEGORY #1 #2 #3 SHARE SHARE Snacks 35.0% URC 25.2% 6.0% Lorem ipsum Biscuits 14.5% URC 13.2% 7.3% Candies 25.0% URC 14.8% 14.1% Wafers 19.4% 22.6% URC 8.3% Chocolates and 22.3% URC 14.2% 7.4% Coated Wafers Vietnam Biscuits 14.7% 28