Fraser & Neave Ltd. · SGX:F99
Fraser & Neave — H1 2018 Earnings Presentation
14 slides from Fraser & Neave's earnings presentation, 2018
Slide 1: F&N 1H2018 Financial Highlights
F&N 1H2018 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: 1H2018 Performance Highlights
1H2018 Performance Highlights Attributable profit rose 58% to $41 million • Earnings for the half-year ended 31 March 2018 (“1H2018”) rose 26% • Revenue growth was broad based; grew 1% to $960 million • EBIT increased 26% to $87 million • Dairies earnings, supported by earnings from associate compan
Slide 4: Group Financial Highlights
1H2018 Group Financial Highlights Revenue Earnings before interest and tax (“EBIT”) (million) (million) $960.2 $86.8 ▲ 1.5% ▲ 26.4% Profit after tax EBIT margin (million) (%) $71.2 9.0% ▲ 11.4% ▲ 178bps Gearing1 Earnings per share (basic)3 (%) (cents) 13.2% 2.9 ▲ from 5.3% in FY20172 ▲ 61.1% 1 Net d
Slide 5: Revenue increased 1%
1H2018 Revenue increased 1% Strong export sales and favourable translation effects lifted revenue Revenue by Business Segment 1H2018 ($) Revenue by Business Segment (%) +1.5% Dairies 60% Publg & $960m Print $946m $960m 15% +5.0% -4.1% Beverages $577m 25% $550m 1H2018 Revenue by Geography(%) $242m $2
Slide 6: Revenue | Beverages
1H2018 Revenue |Beverages Despite a strong Q2 performance, 1H2018 revenue was 4% lower than 1H2017 Beverages Malaysia (-2%; -5% in constant 1H2018 Revenue currency) – Revenue lifted by stronger Ringgit -7% -4% $253m -5% -27% $242m $236m – Strong Q2 revenue growth (+18% vs LY) lifted -7% revenue; suc
Slide 7: Revenue | Dairies
1H2018 Revenue |Dairies Broad-based sales growth; revenue increased 5% Dairies Malaysia (+8%; +4% in constant 1H2018 Revenue currency) +5% $550m +4% +2% +2% $577m – Revenue boosted by stronger Ringgit +0% Sin/Others $117m – Double-digit growth in Export helped to $117m mitigate lower domestic sales
Slide 8: Revenue | Publishing & Printing
1H2018 Revenue |Publishing & Printing • Revenue down marginally to $140m • Supported by turnaround in Print and Distribution segments • Impacted by lower sales (timing differences) and shift in product mix in Publishing -2.2% $143m $140m 1H2017 1H2018 8 Half-year ended 31 March 2018
Slide 9: EBIT grew 26%
1H2018 EBIT grew 26% Contributions from associated company, Vinamilk mitigated weaker performances in Beverages EBIT by Business Segment 1H2018 1H18 ($) 1H17 EBIT by Business Segment (%) EBIT EBIT Margin Margin Publg 14.4% 17.7% Dairies & 9.0% 118% Print 1.4% 0.3% 7.3% -8% 1H17 1H18 $102m +26.4% +4.
Slide 10: EBIT | Beverages
1H2018 EBIT | Beverages Earnings fell mainly on lower soft drinks sales in Malaysia, higher input costs and New Markets expenses EBIT: Beverages Beverages Malaysia (+2%; -2% in constant NM currency) -2% – EBIT lifted by stronger Ringgit $4m – EBIT impacted by lower revenue and higher input -86% -78%
Slide 11: EBIT | Dairies
1H2018 EBIT | Dairies Earnings jumped 29% on maiden profit contribution from associated company, Vinamilk Vinamilk EBIT: Dairies +29% – Group’s share of Vinamilk’s profit under $102m equity accounting method effective mid- +32% $79m Others $3m April 2017 $2m NM Vinamilk +2% $33m Dairies Malaysia (-3
Slide 12: EBIT | Publishing & Printing
1H2018 EBIT | Publishing & Printing • 1H2018 losses narrowed from $8m to $7m owing to improving operational efficiencies and productivity as a result of prior years’ cost rationalization efforts EBIT: Publishing & Printing ($6.7m) ($7.9m) 1H2017 1H2018 12 Half-year ended 31 March 2018
Slide 13: Maintained a strong financial position
Maintained a strong financial position Focused on prudent balance sheet management Key Financials • Borrowings increased to finance purchases of Vinamilk shares FY2017 1H2018 • The Group owned 19.96% of Vinamilk shares @ 31 March 2018 Total Equity1 $3,136m $3,077m • The Group adopts a prudent gearin
Slide 14: Analyst and media contact: Jennifer Yu
Analyst and media contact: Jennifer Yu Head, Investor Relations T: (65) 6318 9231 E: [email protected] Fraser and Neave, Limited