Carabao Group Strictly Private & Confidential NOV 2019 Corporate Presentation 3Q19 0
Disclaimer The provision herein does not constitute legal advice or investment opinions of any kind, neither is it intended as an offer, solicitation for Carabao Group PCL. (“CBG” or “The Group”) . The information presented within this material is intended to indicate the Group’s operational and financial position at a given period of time and to be used, downloaded, and distributed for analyst briefings, and general meetings with CBG, and to be used for educational material in order to understand CBG’s operation only. The Group makes no representation that all information is complete and accurate for the purpose of producing a projection of CBG’s operations, performance, or financial position and may be susceptible to uncertainty and important changes based on political, economic, strategic, and other such uncontrollable factors. Forward looking statements in this presentation are based on the management’s assumption in light of information currently available and obtainable, as well as the aforementioned/unmentioned risks and uncertainties. CBG’s actual results may vary materially from those expressed or implied in its forward-looking statements, and no assurance is made as to whether such future events will occur. The Group accepts no liability whatsoever for any loss arising directly or indirectly from the use or endorsement of any information contained herein by any users and/or third parties. 1
INDEX Business Updates Financial Updates Corporate Profile Corporate Profile 2
Financial Updates 3
ENDE DED D 30 SEPTEMBER PTEMBER 2019 19 TOTAL SALES ฿ 10,976 mn ENERGY 4%YoY DRINK SALES GROSS 54% from PROFITS OVERSEAS ฿ 4,193 26%YoY NET PROFITS to Major Shareholders ฿ 1,704 mn 164%YoY 9M19 9 AT A GLAN LANCE CE
TOTAL SALES Sales by Quarter (THBmn) Sales Growth Analysis* 3Q19 YoY QoQ Sales YTD (THBmn) 9M19 YoY * Sales growth of each product group weighted by sales contribution 5
BRANDED OWN BRANDED OWN Improving GP margin due to economies of scale, increasing rate of captive consumptions of aluminum-can packaging and efficiencies, and partial savings from strategic sourcing GPM Growth: DOM vs Overseas ENERGY DRIVE 3Q19 YoY QoQ OVERSEAS DOMESTIC Product Portfolio %Sales from Overseas 9M19 YoY Energy Drink Non- 9M19 FY17 Energy Non-Carbonated Carbonated Mar DOM ’ 19 OVER SEAS 6
BRANDED OWN - OVERSEAS Overseas strong present in CLMV markets and new markets added thanks to the fame of Carabao Cup THB mn FY15 FY16 FY17 FY18 3Y-CAGR 9M18 9M19 %YoY 3Q18 2Q19 3Q19 %YoY %QoQ CLMV 1,878 2,546 3,293 5,498 43% 3,944 4,192 6% 1,355 1,276 1,473 9% 15% CHINA - - 1,019 592 n/a 520 411 -21% 116 188 171 47% -9% UK - 8 89 72 n/a 102 39 -62% 39 12 11 -71% -5% Other Asia 182 493 262 92 -20% 70 307 340% 33 175 45 35% -74% OTHERS 191 246 360 222 5% 141 228 62% 53 97 74 39% -23% TOTAL 2,250 3,292 5,024 6,476 42% 4,776 5,177 8% 1,597 1,748 1,774 11% 1% 7
BRANDED by OEM & DISTRIBUTION for 3rd PARTY Sales By Product DISTRIBUTION for 3 rd PARTY FY17 9M19 GPM LEVERAGE DISTRIBUTION YoY due to a product mix Growth: AL product 3Q19 AL Sales By Product BRANDED OEM GPM LEVERAGE STRONG BRAND YoY due to 9M19 gradual & DISTRIBUTION adjustment for selling price of Coffee RTD 8
Decomposed EBITDA & Debt Profile Non-ICUK (THBmn) ICUK Group (THBmn) Consolidation (THBmn) Representing global Representing global Representing global sponsorship fees sponsorship fees sponsorship fees incurred by Non-ICUK incurred by ICUK incurred by group of companies group of companies consolidation Key indicator of consolidated debt profile Reduced after all capacity expansion projects completed in 2018 9 Note: CBG started to consolidate ICUK in an aftermath of takeover exercise since 4Q2016
Statement of financial position STATEMENT OF FINANCIAL POSITION Unit: THB million Dec-18 Sep-19 Change LIABILITIES Dec-18 Sep-19 Change ASSETS Current Assets Current Liabilities Cash, Cash Equivalents 138 198 61 Short-term loans 275 639 364 1,810 1,597 Current Investments - - - Trade and other payable (213) Trade and other receivable 907 1,413 506 Current portion of long-term loans 401 321 (80) - 1,699 Inventories 887 975 88 Current portion of Debentures 1,699 Other current assets 546 549 3 Other current liabilities 278 196 (82) Total Current Assets 2,477 3,135 658 Total Current Liabilities 2,764 4,452 1,687 1,279 1,116 Long-term loans (163) Debentures 2,786 1,088 (1,697) Other non-current liabilities 126 145 19 Total non-current liabilities 4,191 2,349 (1,841) Non-Current Assets Total Liabilities 6,955 6,801 (154) Long-term Investment - - - SHAREHOLDERS' EQUITY Investment Properties 100 104 4 Issued and fully paid up share capital 1,000 1,000 - Property, plant & equipment 11,090 10,891 (199) Premium on shares 3,963 3,963 - Intangible Assets 77 80 2 Retained earnings 2,240 2,844 604 Deferred Tax Assets 63 50 (13) Other components of shareholders' equity - 26 - 37 1 Other non-current assets 12 12 (1) Equity attributable to owners of the Company 7,177 7,770 593 Goodwill 500 458 (42) Non-controlling interests of the subsidiary 188 158 (30) Total Non-Current Assets 11,843 11,594 (249) Total shareholders' equity 7,365 7,928 563 Total Assets 14,320 14,729 409 Total liabilities and Equity 14,320 14,729 409 10 10
Statement of comprehensive income Unit: THB million 2017 2018 Change 2018 3Q2018 2Q2019 3Q2019 Change Change 9M2018 9M2019 Change 9M2018 9M2019 YoY %sales YoY QoQ YoY %sales %sales (Adj.) (Adj.) (Adj.) (Adj.) Revenue from sales 12,904 14,422 11.8% 100.0% 3,627 3,754 3,862 6.5% 2.9% 10,582 10,976 3.7% 100.0% 100.0% Costs of goods sold 8,840 9,813 11.0% 68.0% 2,430 2,344 2,268 -6.7% -3.2% 7,248 6,783 -6.4% 68.5% 61.8% Gross profits 4,065 4,609 13.4% 32.0% 1,197 1,410 1,594 33.2% 13.0% 3,334 4,193 25.8% 31.5% 38.2% Selling expenses 2,379 2,520 5.9% 17.5% 692 531 488 -29.5% -8.1% 2,012 1,499 -25.5% 19.0% 13.7% G&A expenses 741 788 6.4% 5.5% 200 191 181 -9.5% -5.3% 587 567 -3.4% 5.5% 5.2% Operating profits 945 1,301 37.6% 9.0% 305 688 925 203.3% 34.5% 735 2,126 189.4% 6.9% 19.4% Other incomes 164 135 -17.5% 0.9% 29 28 28 -1.2% 1.5% 90 84 -6.4% 0.9% 0.8% Other expenses - - - - 19 - 26 32.1% - 10 33 224.1% 0.1% 0.3% EBIT 1,109 1,435 29.4% 10.0% 314 715 928 195.3% 29.6% 825 2,211 168.0% 7.8% 20.1% EBITDA 1,372 1,899 38.4% 13.2% 433 849 1,061 145.1% 25.1% 1,159 2,610 125.2% 11.0% 23.8% Interest expenses 48 107 124.0% 0.7% 25 33 34 37.3% 2.9% 76 102 34.2% 0.7% 0.9% EBT 1,061 1,329 25.2% 9.2% 289 682 893 208.9% 30.9% 749 2,109 181.6% 7.1% 19.2% Income tax expenses 261 368 41.3% 2.6% 84 134 167 99.0% 24.8% 245 403 64.3% 2.3% 3.7% Net profits for the period 801 960 19.9% 6.7% 205 548 726 253.9% 32.4% 493 1,673 239.0% 4.7% 15.2% * Equity Holder of the Company 1,246 1,159 -7.0% 8.0% 255 552 732 186.8% 32.6% 646 1,704 163.8% 6.1% 15.5% Remark : *CBG increased shareholdings in ICUK from 51% to 84% since 1Q18 onwards. IUCK is a subsidiary operating marketing and distribution of Carabao products in the UK and other countries outside Asia. . 11 11
Corporate Profile 12 12
Company overview Carabao is the 2 nd largest energy drink company in Thailand with strong distribution network and a successful overseas business, which represents c.49% of the total revenue Business overview Product overview • Founded in 2001 as a partnership between 3 founders one of Categories Product Portfolio which is the leading singer of Carabao (Thai legendary folk band), the Carabao Group is now the 2 nd largest energy drink company in Thailand with 22.7% market share 1 Energy drink • Its main product, Carabao Energy Drink, is packaged into amber glass bottles or aluminum cans. Other branded products include bottled water, coffee, Carabao Sport electrolyte drink. Coffee • Vertically integrated business model - CBG manufactures and distributes its own products, while excess distribution is maximized by distributing 3 rd party products 3-in-1 instant coffee RTD coffee drink Others • Carabao has strong in-house production capabilities of glass branded bottle, and aluminum can (production commenced in late Q4 products Carabao Sport 2018) electrolyte drink Drinking water • Strong local distribution channel with presence in both traditional Carabao's market share evolution 1 and modern channels Vol share of Thai energy drink market o Over 50 first tier agents o 31 distribution centers across Thailand o 326 cash vans – direct distribution- covering c.180,000 retailers • Successfully tapped into global markets o Strong presence in international markets including Cambodia, Myanmar, Vietnam, Laos and other countries o Penetrating into new key strategic countries i.e. China o Opportunities in new export markets thanks to the fame of Carabao Cup 13 13 Source: 1. Nielsen energy drink market report, as of September 2019 ("Nielsen Report")
Recommend
More recommend
