quarter 2015 - todayir · 23rd february 2016 4th quarter 2015 financial results . disclaimer ......
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4th Quarter 2015
23rd February 2016
4th Quarter 2015 Financial Results
Disclaimer
The presentation is prepared by Super Group Ltd (“Super” or “the Group”) and is solely for thepurpose of corporate communication and general reference only. The presentation is not intendedas an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for anyclass of securities of the Group in any jurisdiction. All such information should not be used orrelied on without professional advice. The presentation is a brief summary in nature and does notpurport to be a complete description of the Group, its business, its current or historical operatingresults or its future business prospects. The statements are not and should not be construed asmanagement’s representation on the future performance of Super.
Our forward-looking statements involve risks and uncertainties, many of which are beyond ourcontrol, and important factors that could cause actual results to differ materially from those in theforward-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 andtax law changes.
This presentation is provided without any warranty or representation of any kind, either expressedor implied. The Group specifically disclaim all responsibilities in respect of any use or reliance ofany information, whether financial or otherwise, contained in this presentation.
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Content
Performance Summary
Profit & Loss Highlights
Segmental Review
Trend Analysis
Strategy & Outlook
Appendix Balance Sheet Highlights
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Performance Summary for 4Q15
Robust income-generating capability Operating profit up 3% to S$21.2m despite lower sales revenue
- Gross profit margin improved by 4 ppt to 39%- Reflects Group’s strong income-generating capability
4Q15 sales revenue down 8% to S$141.1m- Branded Consumer (“BC”) sales maintained while Food Ingredients (“FI”) sales declined by 20%
Net profit (after tax and minority interests) stood at S$15.7m (4Q14:S$25.9m)- Non-recurring gain of S$6.5m on disposal of a property in 4Q14- Non-recurring gain of S$0.5m on liquidation of a joint-venture in 4Q14- Higher effective tax rate (4Q15:25%, 4Q14:10%)
Strong financial position- NAV per share at 46.80 SG cents – an increase of 5%- Cash flows from operating activities up 35% to S$34.4m- Cash and cash equivalents of S$123.9m
Consistent dividend payout ratio- Paying out ≥50% of net profit as dividends on an annual basis since 2010
Continue to press on through innovation and diversification- Launch of ESSENSOTM MicroGround Coffee and Owl Kopitiam Roast & Ground Coffee were met withencouraging results
- Expect rollout of more new innovative BC products- Strengthening FI sales and marketing functions while appointing more distributors to expand reach
Performance Summary for 4Q15
Non-recurring gains & higher effective tax rate impacted results
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Profit & Loss Highlights
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^ Denote percentage points
*Profit attributable to owners of the company
NM: Not Meaningful
Financial Highlights 4Q15 4Q14 % FY15 FY14 %
(S$'000) Change Change
Revenue 141,070 153,658 (8) 509,240 539,461 (6)
Gross Profit 54,460 54,462 NM 182,440 189,620 (4)
Gross Profit Margin (%) 39 35 4^ 36 35 1^
Total Operating Expenses (33,277) (33,959) (2) (120,371) (119,654) 1
Profit from Operating
Activities 21,183 20,503 3 62,069 69,966 (11)
Profit from Operating
Activities (%) 15 13 2^ 12 13 (1)^
Net Finance Income 490 307 60 1,008 1,774 (43)
Net Other Income 444 8,979 (95) 2,960 10,179 (71)
Net Profit (after tax & MI )* 15,718 25,922 (39) 47,270 68,763 (31)
Net Profit Margin (%) 11 17 (6)^ 9 13 (4)^
EBITDA 27,635 33,710 (18) 88,362 98,161 (10)
EBITDA Margin (%) 20 22 (2)^ 17 18 (1)^
Earnings per share (cents) 1.41 2.32 (39) 4.24 6.17 (31)
Segmental Review
BC remained major revenue contributor & primary pillar of growth
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Super’s integrated business model
Downstream
BC segment
Upstream
FI segment
FI accounts for 32% of sales (4Q14: 37%)BC accounts for 68% of sales (4Q14: 63%)
Segmental Review – BC Sales
Impact from currency weakness buffered by new product launches
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Southeast Asia Revenue declined 2% YoY in 4Q15, mainly due
to―Myanmar (weaker Kyat against the USD)―Philippines
Partially offset by stronger performance in―Singapore and Malaysia (new product
launches)―Thailand
East Asia Sales grew 39% YoY in 4Q15
---Better performance in China following the successful rollout of products in 2Q15
---Continued branding and marketing efforts
Others Sales declined 29% YoY in 4Q15
---Eastern Europe (weaker domestic currencies against USD)
Sales declined marginally by 1% to S$96.0m
Segmental Review – BC Sales
Coffee sales boosted by rollout of new products
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Coffee remained the major revenue contributor at 77%, followed by Cereals at 10%
New product rollout received encouraging results
ESSENSOTM MicroGround Coffee Owl Kopitiam Roast & Ground
Coffee
Continue to focus on BRANDING and PRODUCT INNOVATION to drive growth
---To drive innovation in other categories such as Tea and Cereal
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Southeast Asia 4Q15 sales declined mainly due to
lower sales into Indonesia on theback of weaker economy andIndonesian Rupiah against the USD
Partially offset by higher sales inPhilippines
East Asia Revenue declined mainly due to a
slowdown in the China market Partially offset by higher sales into
Taiwan
Segmental Review – FI Sales
Dragged by regional currency weakness &/or market slowdownSales declined 20% to S$45.0m
Segmental Review – FI Sales
Non-dairy creamer remains major revenue contributor
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NDC remains the largest contributor, contributing 72% to revenue, followed by SCP at 27%
Focus on moving up the value chain, through Value-add existing products Rollout premium products
Expanding distribution reach and increasing market penetration by Strengthening sales and
marketing functions Appointing more distributors
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Trend Analysis – Operating Cash Flow
Cash-generative business model
Robust operating cashflows; increased to 13% of revenue (or S$66.9m) in FY2015 Reflects the Group’s cash-generative model
57.2 85.7 65.9 60.4 66.9
13%
16%
12% 11%
13%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
2011 2012 2013 2014 2015
S$m Operating cash flows and operating cash flows as a percentage of revenue
Operating Cash flows Operating cash flows as a % of revenue
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Trend Analysis – Operating Profit
Strong income-generating capability
19.9 17.5 12.0 20.5 16.4 15.5 9.0 21.2
124.6 131.7 129.5 153.7
121.7 125.5 121.0 141.1
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
-
5.0
10.0
15.0
20.0
25.0
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
Operating profit and Revenue
Operating profit Sales Revenue
S$m S$m
4Q15 operating profit increased by 3% YoY to S$21.2m despite lower sales revenue Higher GPM (4Q15:39%; 4Q14:35%) Effects of higher depreciation charges (from completion of expansion projects in 2014) tapering off
in 4Q15 Reflects the Group’s strong income-generating capability
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Trend Analysis – Net Asset Value and Cash & Cash Equivalents
Strong financial resources to execute growth strategy
Stable growth in NAV; resilient during challenging times Cash & cash equivalents increased to S$123.9m as at 31 December 2015 Super has the financial resources to execute growth strategy and tide through challenges
121.9 111.5 98.5 101.3 123.9
366.9 398.9
466.9 497.6 521.9
-
100.0
200.0
300.0
400.0
500.0
600.0
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2011 2012 2013 2014 2015
Net asset value(NAV) and Cash & Cash equivalents
Cash and cash equivalents Net asset value
S$m S$m
Trend Analysis – Dividend Payout Ratio
Consistently paying at least 50% of net profit as dividends
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(dividend expressed as a percentage of net profit)
Consistently paid out >50% of net profit as dividends to shareholders Total dividend paid out since 2010 is S$211.0m
51.0 52.2 50.1 50.2 50.2 51.4
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
2010 2011 2012 2013 2014 2015
%
Dividend payout ratio
Dividend payout ratio
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Strategy & Outlook
Pushing Through Headwinds in Difficult Economic Environment
Strategy & Outlook – Business in a difficult economic environment
Branding – Increased momentum in key growth markets like China
Strategy & Outlook – Innovative products pipeline to drive growth in Coffee, Cereal & Tea categories
Innovation – New products roll out in key markets
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Strategy & Outlook – Expanding distribution network & growing beyond Coffee category
Diversify geographically
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Strategy & Outlook
Product Innovation on track to deliver revenue contribution
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Strategy & Outlook
Outlook and Guidance
Remain cautiously optimistic and upbeat about the future of Super despite achallenging economic environment that affect overall demand and consumersentiments in key markets
Key raw material prices have softened but likely to be cyclical as uncertainty remains atrend of raw materials
We expect continued intense competition from local, regional and global brands
Forex volatility and fluctuations expected to affect Group operating performance
We expect our markets and business environments in 2016 to be similar to 2015 withconsistent headwinds and aggressive pricing competition.
With the above conditions, growth strategy of BID continue to be in place whilewe aim to be leaner and improved operational efficiency.
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Appendix
Balance Sheet Highlights
Property, plant and equipment decreased mainlydue to depreciation charges
Inventories decreased mainly due to lower rawmaterial balances
Trade and other receivables increased due to highertrade receivables
Cash and cash equivalents increased to S$123.9m 23
In S$’000 Dec 15 Dec 14
Non-Current AssetsProperty, plant and equipment
287,965273,698
287,194276,274
Current AssetsInventoriesTrade and other receivablesCash and cash equivalents
377,422106,306140,759123,944
343,927115,059118,237101,336
Current LiabilitiesTrade and other payablesBank loan
119,63980,52327,354
107,30779,46620,000
In S$’000 Dec 15 Dec 14
Non-Current LiabilitiesDeferred taxation
7,3697,298
6,7886,746
Equity attributable to owners of the Company
521,873 497,562
RatiosNAV per share (cents)Debt-to-equity ratio (times)*Current ratio (times)Trade Receivables turnover (mths)Inventory turnover (mths)Trade Payables turnover (mths)
46.800.243.152.494.141.08
44.620.223.212.163.811.20
Bank loans were used to finance working capital
NAV per share stood at 46.80 cents
D/E ratio of 0.24 times; low gearing
* Computed based on Total Liabilities divided by Total Equity.
For Investor Relations, please contact:
Candy ChngGroup Corporate Affairs & Investor Relations
Tel: (65) 6753 3088
www.supergroupltd.com
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