Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — FY2019 Earnings Presentation
19 slides from Fraser & Neave's earnings presentation, 2019
Slide 1: F&N FY2019 Financial Highlights
F&N FY2019 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: FY2019 Performance Highlights
FY2019 Performance Highlights Earnings rose 31.7% to $283.5 million underpinned by solid performances from all divisions • Group performance improved for the full-year ended 30 September 2019 (“FY2019”) • Revenue increased 3.7% to $1,902.3 million on higher sales from Food & Beverage division • EBIT
Slide 4: Group Financial Highlights
FY2019 Group Financial Highlights Revenue Earnings before interest and tax (million) (million) $1,902 $284 ▲ 3.7% ▲ 31.7% Profit after tax Gearing (million) (%) $212 12.3% ▲ 17.6% ▲ 151bps Dividends per share Earnings per share (basic) (cents) (cents) 5.51 10.62 ▲ 22.2% ▲ 24.7% 1 Interim dividend of
Slide 5: Revenue grew 3.7% to $1,902 million
FY2019 Revenue grew 3.7% to $1,902 million Lifted by higher dairy and soft drinks sales By Business By Business ($) (%) $1,902m +3.7% $1,835m Dairies 61% Publg & Print $1,902m 14% $1,154m +3.6% $1,113m Beverages 25% By Geography +6.5% (%) $471m $442m Thailand $277m 34% $279m Others 5% -nm- $1,902m $
Slide 6: Revenue | Beverages
FY2019 Revenue | Beverages Revenue increased 6.5% Revenue Beverages Malaysia +14.9% +6.5% – Lifted by successful festive activations +23.9% and rollout of new products, and +1.0% improvements in route-to-market Beverages Singapore $471m $442m – Revenue improved 23.9% mainly due to higher 100PLUS sal
Slide 7: Revenue | Dairies
FY2019 Revenue | Dairies Revenue growth driven by strong performance from Dairies Thailand Dairies Malaysia Revenue +3.6% – Sales was up 0.9% despite intense +9.9% $1,154m price competition in canned milk $1,113m +0.9% -7.4% SIN/Others categories $244m $226m Dairies Thailand THAI – Higher sales due
Slide 8: Revenue | Publishing & Printing
FY2019 Revenue | Publishing & Printing Revenue fell 0.6% due to • Change in sales mix of education publishing business • Lower retail revenue due to store closures Revenue -0.6% $277m $279m FY2018 FY2019 8 Full-year ended 30 Sep 2019
Slide 9: EBIT rose 31.7%
FY2019 EBIT rose 31.7% Bolstered by higher soft drinks and dairy sales, favourable input costs and higher profit contribution from Vinamilk FY19 By Business FY18 By Business EBIT ($) 23.9% EBIT (%) Margin Margin 14.9% Publg & 20.7% 11.7% Print $284m 0.1% 1.4% $276m Dairies 3% +31.7% +4. 97% FY18 FY1
Slide 10: EBIT | Beverages
FY2019 EBIT | Beverages Higher sales, favourable input costs and lower marketing spend supported earnings growth FY2019 EBIT Beverages Malaysia +50.4% – EBIT grew 5.7% on higher sales and lower marketing spend $7m NM NM Beverages Singapore $0m +5.7% – Earnings improved largely due to higher FY2018 M
Slide 11: EBIT | Dairies
FY2019 EBIT | Dairies Earnings increased 19.3% on lower input costs and higher contribution from Vinamilk Dairies Malaysia EBIT +19.3% $276m +17.0% – EBIT declined on increased marketing $231m +36.6% SIN/Others $8m -9.8% and promotional spend $9m -5.6% Vinamilk $95m $111m Dairies Thailand THAI $87m
Slide 12: EBIT | Publishing & Printing
FY2019 EBIT | Publishing & Printing • Despite lower revenue, earnings improved significantly • Mainly driven by improvements in print business, maiden profit contribution from newly-acquired business and one-off income from the sale of non-core assets EBIT $10m $0m FY2018 FY2019 12 Full-year ended 3
Slide 13: Maintained a strong financial position
Maintained a strong financial position Focused on prudent balance sheet management • Higher borrowings to finance Group’s Key Financials investment in Starbucks Coffee (Thailand) FY2018 • Proposed final dividend of 4.0 cents per share, (restated) FY2019 bringing full-year dividend to 5.5 cents, an i
Slide 14: Corporate Developments
Slide 15: F&N returns to Myanmar with Emerald Brewery
F&N returns to Myanmar with Emerald Brewery 79.86% INTEREST EMERALD BREWERY MYANMAR LIMITED (“Emerald Brewery) • Invested US$70 million (S$105 million) in a state-of-the-art brewery located at Hlegu Township, Yangon INVESTED Annual capacity of 500,000 hectoliters $105 • • Commercial operations start
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 GENKI SUSHI BANGKAPI CO. LTD. (“GSB”) • GSB is a franchised sushi restaurant business in Thailand, under its principal brand, GENKI SUSHI 20.75% • F&N’s effective stake in GSB ~20.75% EFFECTIVE INTEREST @ April 2019 17 Full-year ended 30 Sep 2019
Slide 18: F&N enters fast-growing premium retail coffee segment in Thailand
F&N enters fast-growing premium retail coffee segment in Thailand STARBUCKS COFFEE (THAILAND) CO., LTD (“STARBUCKS THAILAND”) • F&N, through Coffee Concepts (Thailand) Co., Ltd., a partnership between F&N Retail Connection Co., Ltd. and Maxim’s Caterers Limited (“Maxim’s”), acquired the entire issue
Slide 19: Analyst and media contact
Analyst and media contact: Jennifer Yu Head, Investor Relations T: (65) 6318 9231 E: [email protected] Fraser and Neave, Limited