1H CY2018 Unaudited Results Investor Briefing July 30, 2018 Irwin C. Lee Mike P. Liwanag President and CEO Vice President
AGENDA 1H CY2018 Unaudited Financial Results Our Plans, Expectations and Guidance 2
URC: Topline growth driven by International and Agro-Industrial & Commodities (AIC) Sales EBIT vs SPLY vs SPLY 64.4 +6% 60.8 7.6 6.8 -11% 33.2 3.6 30.1 +10% 3.3 -7% • Topline growth driven by International 31.2 4.0 30.7 +2% 3.5 -14% and AIC 2017 2018 2017 2018 • Profits remained challenged driven by 1Q 2Q lower volumes in Coffee and higher EBIT Margin selling & distribution cost. 13.1% 12.5% 11.9% 11.1% 10.5% 10.0% 1Q 2Q 1H 2017 2018 3 In billion pesos | Non-branded Consumer Foods Group is now called Agro-Industrial and Commodities (AIC)
BCF-PH: Posted positive topline growth in Q2 Sales vs SPLY Sales vs SPLY w/ w/o H1 Q1 Q2 coffee coffee 29.3 28.8 -2% +4% Snackfoods -3% +9% +3% Coffee -21% -16% -18% • Topline growth in Q2 14.3 14.4 +7% +1% RTD +18% +8% +12% driven by recovery of beverage +6% +13% +9% Snackfoods, RTD Noodles 15.0 14.3 -5% +1% Beverages, and Total -5% +1% -2% Noodles 2017 2018 • Decline in EBIT was EBIT EBIT Margin due to lower volumes vs SPLY 4.7 in coffee and higher 16.5% 16.1% 3.6 15.6% -24% selling & distribution 2.2 1.7 expenses. -26% 13.4% 12.4% 11.5% 2.5 1.9 -23% 1Q 2Q 1H 2017 2018 2017 2018 In billion pesos | Excluding packaging 4
BCF-INTERNATIONAL: Recovery in Vietnam led to overall topline growth Performance from key markets Sales vs SPLY Sales growth in USD Vietnam, Australia, and 21.6 Q1 Q2 H1 +8% 20.0 Indonesia drove sales +28% +23% +25% VN 10.9 +7% growth 10.1 ID +5% +9% +7% TH +6% -2% +2% Thailand domestic AU +11% +3% +7% 10.8 +10% 9.8 NZ -15% -9% -12% market is sluggish and 2017 2018 Cambodia distribution is under transition. 1Q 2Q EBIT EBIT Margin vs SPLY Profitability improved as 8.6% 1.7 +62% 8.0% 7.4% a result of the recovery in Vietnam and benefits +50% 0.8 1.1 from restructuring in 5.4% 5.3% 5.2% 0.5 New Zealand +73% 0.9 0.5 1Q 2Q 1H 2017 2018 2017 2018 5 In billion pesos In billion pesos
AIC : Higher volumes in Sugar, Flour & Feeds and better selling prices in Hogs boosted overall topline AIG CFG Commodities Sales • Topline and EBIT growth was driven by higher vs SPLY +22% 13.2 volumes and average selling prices of Sugar and 10.8 Flour 7.7 +28% 6.1 Agro-Industrial • Sales grew as a result of higher volumes in 5.5 +15% 4.8 feeds and better average selling prices for hogs • Decline in EBIT as a result of higher cost of H1 2017 H1 2018 input materials EBIT vs SPLY -15% 2.8 2.4 1.7 +17% 1.9 1.1 -62% 0.4 H12017 H1 2018 In billion pesos | Non-branded Consumer Foods Group is now called Agro-Industrial and Commodities (AIC ) 6 AIG EBIT includes revaluation loss of 226M TY coming from farms vs 300M gain LY
Strong Balance Sheet and Cash Position Cash and Financial Debt • Net debt of Php 30.3B due to long term debt of AUD 484M used for SBA’s 43.6 42.6 acquisition 13.4 10.9 • Gearing ratio of 0.55 • 1H CY17 1H CY18 Major cash disbursements for CAPEX, Dividends payment and working capital Cash + Financial Assets at FVPL + AFS Financial Debt Cash Position 9.9 3.8 6.9 14.5 12.9 2.1 2.8 Cash as of EBITDA CAPEX Dividends Working Others Cash as of Dec 2017 Capital Jun 2018 7 In billion pesos
Expectation & Plans We e expe pect the the mo momentum for or top opli line gr growt wth to o con ontin inue in n the the 2H H but but margi ma gin pr pressure wi will remain in. FY FY2018 Gu Guidance revis ised to o Sal Sales gr growin wing g mi mid- Key Risks: sing ngle le di digi git but but Ope Operatin ing Inc ncome is no now w for orecasted to o be be fl flat BALANCE OF YEAR PRIORITIES: FIX THE BASICS • Macroeconomic environment will Coffee Distribution Supply Chain continue to remain challenging as inflation and forex devaluation continues to affect demand and impact margins o Key mandate for GM’s and o o Continue to rationalize and Completed diagnosis of • Competitive intensity Sales Heads is to review streamline the portfolio brand challenges their route to market o o Realign organization and Tests underway and execution embed an integrated timing of execution to be o Sharpen the way we supply chain organization determined. engage our modern retail o Better forecasting, customers and deepen demand and supply distribution in traditional network planning to trade increase order fill rates 8
Key Takeaways … my first 75 days as CEO 3 2 1 Demanding for results Very robust technical Facing the challenges but caring for people, capability and of complexity when a strong focus on quality entrepreneurial founders business has and safety; non approach to grown big bureaucratic; people innovation; strong are receptive to focus on quality and change and willing to safety learn; 9
Key Takeaways … my first 75 days as CEO How to transform URC to become a fast, agile and empowered MNC from the Philippines; maintain local-global sweetspot Embed sustainability as a core strategy; empower senior people more; simplification of processes Product & portfolio mapping for strategic Expansions (add legs in countries and growth better innovation processes thru pro-active M&A) and marketing capability upgrades Route to Market Opportunities operational rigor, (back to basics sales fundamentals) better planning and and strengthen external relationships with processes, and lean suppliers & joint venture partners manufacturing 10
THANK YOU 11
APPENDIX 12
Balance Sheet As of Dec 2017 (Php Millions) As of Jun 2018 (Audited) Cash & cash equivalents 13,371 14,999 (including Financial assets at FVPL and AFS investments) Other current assets 40,592 38,750 Property, plant, and equipment 50,396 48,254 Other noncurrent assets 45,709 45,638 TOTAL ASSETS 150,068 147,641 Current liabilities 31,612 28,000 Noncurrent liabilities 38,780 37,955 TOTAL LIABILITIES 70,392 65,955 Retained earnings 61,113 63,244 Other equity 18,563 18,442 TOTAL EQUITY 79,676 81,686 13
Income Statement 1H 2018 1H 2017 YoY (Php Millions) (Unaudited) (Unaudited) NET SALES 64,372 60,795 6% • Core earnings driven by Cost of Sales 44,922 41,539 8% lower operating income GROSS PROFIT 19,450 19,257 1% and other expenses Operating Expense (12,665) (11,642) 9% • Decline in net income OPERATING INCOME 6,786 7,614 -11% was attributable to lower Equity in net income of JVs (62) (110) operating income and lower FOREX gain due to Finance cost - net (588) (561) a slower pace of peso Other Revenues/ expenses (130) 151 devaluation versus same CORE EARNINGS 6,005 7,095 -15% period last year Market valuation gain/ (loss) (68) 23 Foreign exchange gain/ (loss) - net 168 741 INCOME BEFORE INCOME TAX 6,106 7,858 -22% Provision for Income Tax 1,172 1,472 NET INCOME 4,934 6,386 -23% Net income attributable to holders of the parent 4,813 6,255 EBITDA 9,894 10,698 -8% 14
Divisional Financials SALES EBIT EBIT MARGIN (Php Millions) H1 2017 H1 2018 YoY H1 2017 H1 2018 YoY H1 2017 H1 2018 YoY Branded Consumer Foods 49,954 51,152 2% 5,804 5,322 -8% 11.6% 10.4% (121) 30,000 29,521 -2% Total Philippines 4,738 3,597 -24% 15.8% 12.2% (361) Philippines 29,311 28,769 -2% 4,716 3,572 -24% 16.1% 12.4% (367) 688 752 9% 16% Packaging 21 25 3.1% 3.3% 19 International 19,954 21,631 8% 1,066 1,726 62% 5.3% 8.0% 264 Agro-industrial and 10,842 13,220 22% 2,768 2,366 -15% 25.5% 17.9% (764) Commodity 6,050 7,731 28% 1,666 1,947 17% 27.5% 25.2% (236) CFG (net) 1,745 1,915 10% 495 451 -9% 28.4% 23.5% (484) Flour 4,305 5,816 35% 28% SURE 1,171 1,496 27.2% 25.7% (148) 4,791 5,489 15% AIG (net) 1,102 419 -62% 23.0% 7.6% (1,536) 2,481 3,046 23% 435 408 -6% 17.5% 13.4% (413) Feeds 2,311 2,443 6% 667 11 -98% 28.9% 0.4% (2,842) Farms Corporate Expense (957) (902) -6% 60,795 64,372 6% 7,614 6,786 -11% 12.5% 10.5% (198) Total URC 15
Recommend
More recommend
