Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — H1 2019 Earnings Presentation
18 slides from Fraser & Neave's earnings presentation, 2019
Slide 1: F&N 1H2019 Financial Highlights
F&N 1H2019 Financial Highlights
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: 1H2019 Performance Highlights
1H2019 Performance Highlights Earnings rose 59% to $137 million on higher Dairies sales and profit share from Vinamilk • Group performance improved for the half-year ended 31 March 2019 (“1H2019”) • Revenue increased 2% to $932 million • EBIT rose 59% to $137 million, from $86 million • Fueled by Da
Slide 4: Group Financial Highlights
1H2019 Group Financial Highlights Revenue Earnings before interest and tax (million) (million) $932 $137 ▲ 1.9% ▲ 58.7% Profit after tax EBIT margin (million) (%) $107 14.7% ▲ 52.0% ▲ 525bps Gearing1 Earnings per share (basic) (%) (cents) 10.6% 5.13 ▼ 0.2% 2 ▲ 82.1% 1 Net debt / Total equity 2 As at
Slide 5: Revenue grew 2% to $932 million
1H2019 Revenue grew 2% to $932 million Lifted largely by higher Beverages and Dairies sales By Business Segment By Business Segment ($) (%) +1.9% $932m $915m Publg Dairies & 61% Print 14% +2.5% $932m $569m $555m Beverages 25% By Geography +6.8% (%) $235m $220m $128m $140m Thailand 34% Others 4% +7.2
Slide 6: Revenue | Beverages
1H2019 Revenue | Beverages Revenue increased 7%, supported by Core and New markets +34% +7% Beverages Malaysia 1H2019 Revenue +24% – Lifted by successful festive +1% activations and improvements in $235m route-to-market in East Malaysia $220m Beverages Singapore 1H2018 MSIA SIN New 1H2019 Mkts/Other
Slide 7: Revenue | Dairies
1H2019 Revenue |Dairies Revenue grew 3%, largely driven by strong performance from Dairies Thailand 1H2019 Revenue +3% Dairies Malaysia +8% $569m $555m Sin/Others – Revenue down 1% amidst intense $115m -1% -7% $107m price competition in canned milk category; sales flat in local $282m Thai $306m curr
Slide 8: Revenue | Publishing & Printing
1H2019 Revenue | Publishing & Printing • Revenue fell 9% due to • Drop in magazine-related demand for both print and distribution • Lower publishing sales in Singapore and Hong Kong Revenue: Publishing & Printing -9% $140m $128m 1H2018 1H2019 8 Half-year ended 31 March 2019
Slide 9: EBIT surged 59%
1H2019 EBIT surged 59% Strong Dairies performance and higher profit share from Vinamilk boosted earnings By Business Segment By Business Segment 1H19 (%) ($) 25.5% 1H18 EBIT Margin EBIT 18.3% Margin 14.7% 9.4% Dairies Publg 106% & Print 0.4% -0.8% $145m -5% 1H18 $137m $137m EBIT 1H19 +43.1% +58.7% +
Slide 10: EBIT | Beverages
1H2019 EBIT | Beverages Earnings fell mainly due to brewery pre-operating costs ($1.7 million) and higher input costs; excluding pre-operating costs, Beverages losses narrowed Beverages Malaysia EBIT: Beverages +29% -48% – Despite a 1% revenue growth, EBIT fell due to unfavorable input costs and +92
Slide 11: EBIT | Dairies
1H2019 EBIT | Dairies Earnings increased 43% on lower input costs and higher contribution from Vinamilk +43% EBIT : Dairies Dairies Malaysia $145m SIN/Others – EBIT increased 23% on lower input $101m $4m VM costs for sugar and dairy-based $52m commodities $3m $32m THAI Dairies Thailand $47m $66m – E
Slide 12: EBIT | Publishing & Printing
1H2019 EBIT | Publishing & Printing • Losses widened to $7.1 million from $6.7 million • Mainly due to the absence of a $1.1 million one-off gain in the sale of machinery recorded last year EBIT: Publishing & Printing ($6.7m) ($7.1m) -6.0% 1H2018 1H2019 12 Half-year ended 31 March 2019
Slide 13: Maintained a strong financial position
Maintained a strong financial position Focused on prudent balance sheet management Key Financials • Declared interim dividend of 1.5 cents per FY2018 1H2019 (restated) share, equal to last year Total Equity1 $3,168m $3,213m • Takes into account Group’s capital position and near-term capital needs To
Slide 14: APO
APO RATE : C0
Slide 15: New Launches
New Launches Accelerating innovations to meet changing demand Innovation: Healthier products and portion control packing 100PLUS Colours OYOSHI & F&N MAGNOLIA Plus F&N Lychee Pear Malaysia F&N SEASONS Thailand Malaysia Limited edition + Malaysia Lactose-free milk First flavoured CSD with 250ml pack
Slide 16: F&N acquires majority interest in Print Lab Pte. Ltd.
F&N acquires majority interest in Print Lab Pte. Ltd. 60.0% INTEREST PRINT LAB PTE. LTD. (“PL”) @ April 2019 • Acquired a 60% stake for $24.5 million • PL is a one-stop print, creative and digital out-of-home solution provider in Singapore • It serves many blue-chip companies across a diverse set of
Slide 17: F&N enters food business in Thailand
F&N enters food business in Thailand 20.75 EFFECTIVE GENKI SUSHI BANGKAPI CO. LTD. % (“GSB”) INTEREST @ April 2019 • GSB is a franchised sushi restaurant business in Thailand, under its principal brand, GENKI SUSHI • F&N’s effective stake in GSB ~20.75% 17 Half-year ended 31 March 2019
Slide 18: Analyst and media contact
Analyst and media contact: Jennifer Yu Head, Investor Relations T: (65) 6318 9231 E: [email protected] Fraser and Neave, Limited