3 rd Quarter & 9 Months 2014 Financial Results 10 November 2014

Transcription

1 3 rd Quarter & 9 Months 2014 Financial Results 10 November 2014

2 Disclaimer The presentation is prepared by Super Group Ltd ( Super or the Group ) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any class of securities of the Group in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and does not purport to be a complete description of the Group, its business, its current or historical operating results or its future business prospects. The statements are not and should not be construed as management s representation on the future performance of Super. Our forward-looking statements involve risks and uncertainties, many of which are beyond our control, and important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, increased competition, pricing actions, continued volatility in commodity costs, increased costs of sales, risks from operating globally and tax law changes. This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Group specifically disclaim all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentation. 2

3 Content Performance Summary 3Q14 Segmental Review Strategy & Outlook Our 3-pronged growth strategy Outlook: Focus on product innovation to drive growth Appendix Financial Snapshot Balance Sheet Highlights BC: Our Top Brands and Product Ranges BC: Our Product Offerings FI Production Capacities 3

4 A challenging 3 rd quarter Amid cost pressures and stiffer competition A transitional period for the Group - Continuing branding initiatives for Branded Consumer ( BC ) business and premiumisation of Food Ingredients ( FI ) business Sales decreased marginally to S$129.5m - BC sales dipped 6% Year on Year ( YoY ) to S$82.0m - FI sales rose 3% YoY to S$47.5m Net profit dropped to S$10.5m - Cost pressures, particularly palm kernel oil - Higher effective tax rate Strong balance sheet - Cash and cash equivalents of S$77.4m - NAV per share at cents 4

5 3Q14 Results Summary Cost pressures affected profitability Sales S$129.5m Operating Profit S$12.0m 3% 45% BC sales 6% to S$82.0m FI sales 3% to S$47.5m Gross profit margin ( GPM ) dropped 5ppt Cost pressures, particularly palm kernel oil Higher composition of FI sales, which carry lower GPM Higher selling and distribution expenses (3Q14: 12%; 3Q13: 11%) Marketing campaigns eg. Thailand, Malaysia. Higher general and administrative expenses (3Q14: S$14.3m; 3Q13: S$13.0m) Deferred gain amortization of S$0.8m per quarter ended in FY13 Higher depreciation expense Net Profit Higher effective tax rate (3Q14: 20%; 3Q13: 8%) S$10.5m EPS 0.89 cents 46% Expiry of an overseas subsidiary s tax incentive Write-back of overprovision of tax in 3Q13 5

6 Segmental Review BC continues to be the major revenue contributor Super s integrated business model Downstream Upstream BC segment BC accounts for 63% of sales (3Q13: 65%) FI segment FI accounts for 37% of sales (3Q13: 35%) 3Q14 Sales (S$'000) 3Q13 Sales (S$'000) 47,475, 37% BC Sales FI Sales 46,105, 35% 82,026, 63% 86,888, 65% 6

7 BC: Signs of recovery in certain core markets Some core markets recovered despite lower overall BC sales Coffee continued to be the major revenue contributor at 79%, followed by Cereal at 9% Continue to focus on product innovation to drive growth Sales by Product Category (S$m) (12%) (9%) (79%) 68.0 (14%) (8%) (78%) Others* Cereal Coffee 3Q14 3Q13 * Include cup noodles, potato chips and tea products 7

8 BC: Geographical Segment Review Southeast Asia Thailand, Myanmar and Malaysia sales improved Sales for Singapore dipped mainly due to teething issues relating to relocation of Singapore packaging plant to Malaysia in July 2014 Philippines sales affected by the delisting of non-performing products East Asia China s sales were lower YoY as last year s sales were lifted by a new product launch in 3Q13 Others Factory relocation affected sales to export markets such as Mongolia, Maldives, Pacific Islands and Middle East etc Sales by Geographical Area (S$m) (6%) (6%) (8%) (8%) Others* (88%) (84%) East Asia Southeast Asia 3Q14 3Q13 ** Include Europe, Middle East, Africa, Oceania, North and South America markets 8

9 FI: Boosted by higher sales Sales rose 3% to S$47.5m driven by higher Non-dairy Creamer ( NDC ) sales 3Q14: Soluble Coffee Powder ( SCP ) and NDC continue to be main revenue contributor Plans to roll-out premium products such as Botanical Herbal Extracts ( BHE ) and Nutritional Oil Powders ( NOP ) and value-add existing products to drive growth Sales by Product Category (S$m) (77%) (23%) 15.0 (67%) (33%) Others* Non-dairy Creamer Soluble Coffee Powder 3Q14 3Q13 * Include malt cereals, tea and other products 9

10 FI: Geographical Segment review Southeast Asia YoY increase in sales boosted by Philippines East Asia China and Taiwan sales improved Sales by Geographical Area (S$m) (54%) 24.2 (3%) (53%) Others** Southeast Asia East Asia (46%) (44%) 3Q14 3Q13 ** Include Europe, Middle East, Africa, Oceania, North and South America markets 10

11 Growth Strategy BC Core FI Complementary FI BC Branding Branding Innovation Overseas Expansion Enhancing Manufacturing Capabilities Botanical Herbal Extracts Liquid Glucose Syrup Solids Nutritional Oil Powders Innovation BC: Premiumisation of existing product portfolio BC: New product launches FI: Roll out more premium, higher value-added products such as BHE Streamlined Portfolio Rationalisation of SKUs Focus on revenue drivers Deepen Core Markets & Establish New Markets Enhance brand presence Extend category depth & penetration Enlarge consumer base 11

12 Outlook: BC remains as main pillar of growth Branding and product innovation to drive growth New product launches to create product differentiation Expand geographically FI as the complementary pillar Roll-out premium products Nutritional oil powders Botanical herbal extracts Value-add existing products Enhancing NDC with nutritional values Expand footprint in food service sector Bag-in-box ( BIB ) coffee, tea and herbal concentrate Cost control measures Liquid glucose syrup solids plant 12

13 Appendix 13

14 Financial Snapshot Financial Highlights (S$ 000) 3Q14 3Q13 % Change 9M14 9M13 % Change Revenue 129, ,993 (3) 385, ,712 (4) Gross Profit 41,501 48,953 (15) 135, ,766 (11) Gross Profit Margin (%) (5)^ (3)^ Total Operating Expenses (29,493) (27,259) 8 (85,695) (82,122) 4 Profit from Operating Activities 12,008 21,694 (45) 49,463 69,644 (29) Profit from Operating Activities (%) 9 16 (7)^ (4)^ Net Finance Income/(Loss)* 778 (1,689) 146 1, Net Other Income 501 1,426 (65) 1,200 19,183** (94) Net Profit 10,521 19,519 (46) 44,805 79,791 (44) Net Profit Margin (%) 8 15 (7)^ (8)^ EBITDA 18,612 24,877 (25) 64,669 99,251 (35) EBITDA Margin (%) (5)^ (8)^ Earnings per share (cents) *** (47) *** (45) ^: Denote percentage points. *: Foreign exchange gain amounting to S$1.1m in 3Q14, compared to foreign exchange loss of S$1.5m in 3Q13 **: Include non-recurring S$17.1m gain on disposal of the Company s 35.3% interests in Sun Resources Holdings Pte Ltd in 2Q13 *** : Restated as required by FRS

15 Balance Sheet Highlights In S$ 000 Sep 14 Dec 13 Non-Current Assets Fixed assets 294, , , ,644 In S$ 000 Sep 14 Dec 13 Non-Current Liabilities Deferred taxation 7,701 7,607 7,131 6,974 Current Assets Inventories Trade receivables Cash and bank balances Current Liabilities Trade payables Other payables and accruals Bank loan 320, ,702 93,338 79, ,475 39,514 39,240 28, , ,640 92,363 98, ,390 36,888 47,787 - Shareholders Equity 461, ,934 Ratios NAV per share (cents) Debt-to-equity ratio (times)** Current ratio (times) Receivables turnover (mths) Inventory turnover (mths) Payables turnover (mths) * *: Restated as required by FRS 33. **: Computed based on Total Liabilities divided by Total Equity. Fixed assets increased due to expansion projects Increase in inventories due to higher raw material balances at period end Increase in trade receivables due to higher sales recorded towards the end of the period Bank loans were used to finance expansion projects Other payables and accruals decreased due to payment of accrued expenses and construction costs D/E ratio of 0.28 times; low gearing 15

16 BC: Our Top Brands & Product Ranges Super Coffee Super Coffee - Palettes Super - Charcoal Roasted White Coffee Tea Infusions Super Coffee - Master Barista NutreMill Cereal & Soymilk Super Power 16

17 BC: Our Product Offerings New launches in the offering Super Cup - Signature Super Cup Hot Chocolate Milk Tea HORECA Products Owl - Tea Nutrifield OWL Owl Secret Recipe Soothing Brew Products Owl White Coffee Tarik Owl Kopitiam Roast 17

18 FI Products COFFEE CREAMER OTHERS BAKERY & OTHERS SPECIALTY POWDER

19 Our Strategic Food Ingredients Expertise Specialises in premium creamer products such as foaming creamer and cold water soluble creamer Has 25,000MT of creamer capacity annually Botanical Herbal Extracts ( BHE ) 3,000MT of liquid concentrates, spray-dried and freeze-dried powders 20,000MT of instant soluble coffee powder capacity annually; 1,500MT freeze-dried coffee ( FDC ) Has 100,000MT of creamer capacity annually Produces Liquid Glucose Syrup Solids ( LGSS ) Produces Nutritional Oil Powders ( NOP )

20 Our FI Expertise & State-of-the-Art Facilities

21 FI Production Capacities FY2012 FY2013 FY2014E Ingredient Type Annual mfg cap (metric tons) Annual mfg cap (metric tons) Annual mfg cap (metric tons) Spray-Dried Coffee 11,500 15,000 17,500 ( prorated ) Freeze-Dried Coffee NA 1,500 1,500 Cereal Flakes 4,000 4,000 4,000 Non-Dairy Creamer Foaming Creamer Cold Soluble Creamer 125, , ,000 Fat Filled Milk 21

22 For Investor Relations, please contact: Candy Chng Group Corporate Affairs & Investor Relations Tel: (65) ext