second quarter 2019 financial results · restaurant 14.9 7.1 110.9% 25.4 15.8 61.2% 4orth (0.8)...
TRANSCRIPT
1 August 2019
Second Quarter 2019
Financial Results
1
2019
BUSINESS MILESTONES
Food Atrium
4orth
Bakery
Restaurant
S$321.0m S$2.3m1H19 REVENUE 1H19 PATMI
7.9% 35.3%
Jan Disposal of Interest in Carl Karcher Enterprises
(Cayman) Ltd
Acquisition of 25% Interest in Food Republic
Guangzhou F&B Management Co Ltd
Opened Beijing’s 1st Song Fa Bak Kut Teh outlet at
APM Mall
Opened Indonesia’s 1st Toast Box outlet in Jakarta
1st
1st
Acquisition of Strategic Interest in NPPG (Thailand)
Public Company Limited
Establishment of S$500 million Multicurrency Medium
Term Note Programme
Apr
Opened Thailand’s 1st Song Fa Bak Kut Teh outlet at
Central World, Bangkok
Mar1st
Partnership with Song Fa Holdings for Taiwan Market
Expansion
Opened Singapore’s 1st Wu Pao Chun outlet in Capitol
Piazza
Opened Guangzhou’s 1st Song Fa outlet in Parc
Central
May
1st
1st
2
2Q19
BRANDS and OUTLETS
OUTLET Distribution by BUSINESSPortfolio of Directly Managed BRANDS
Bakery
Note: Din Tai Fung, Song Fa Bak Kut Teh, Wu Pao Chun, Tai Gai
and Nayuki are franchised brands.
Food Atrium Restaurant
4orth
Segment 2Q19 1Q19Net
▲\▼FY18
Net
▲\▼
Bakery 875 857 18 863 12
Direct Operated Stores 270 264 6 221 49
Franchise 605 593 12 642 (37)
Food Atrium 63 61 2 60 3
Food Courts 55 55 - 55 -
Direct Operated Restaurants 8 6 2 5 3
Restaurant 32 30 2 28 4
Din Tai Fung 32 30 2 28 4
4orth 21 14 7 12 9
Sō 5 5 - 5 -
TaiGai 1 1 - 1 -
Nayuki 2 1 1 1 1
Song Fa Bak Kut Teh 10 6 4 4 6
Wu Pao Chun 3 1 2 1 2
Total 991 962 29 963 28
3
2Q19
FINANCIAL HIGHLIGHTS
S$ REVENUE EBITDA PATMICORE F&B
PATMI
2Q
2019
163.3 million 49.7 million 1.0 million 1.0 million
9.8 % 174.8 % - 57.9 % - 57.9 %
1H
2019
321.0 million 96.8 Million 2.3 million 2.3 million
7.9 % 181.5 % - 35.3 % - 35.3 %
1H19 PBT (S$ m)
4
2Q19 Financial Highlights
REVENUE and PBT
139.047%
76.325%
74.125%
5.72%
2.21%
142.845%
78.324%
84.526%
13.24%
2.11%
1H
191H
18
172.458%
79.027%
24.68%
11.24% 10.2
3%
177.155%
75.924%
25.18%
24.98% 18.0
5%
1H
181H
19
321.0297.4
609.8599.6615.0
0
200
400
600
800
1H191H18FY18FY17FY16
BUSINESSES
GEOGRAPHIES
(0.5)
13.1
5.8
2.5
(5.5)
11.5
7.2
(1.4)
(10.0) (5.0) 0.0 5.0 10.0 15.0 20.0
4orth
Restaurant
FoodAtrium
Bakery
1H19
1H18
1H19
1H18
1H19
1H18
1H19
1H18
1H19 REVENUE (S$ m) S$321.0m
S$8.7m
REVENUE GROWTH (S$ m) 7.9% Y-o-Y
S$ Million 2Q19 2Q18 Y-o-Y 1H19 1H18 Y-o-Y
Revenue 163.3 148.8 9.8% 321.0 297.4 7.9%
Bakery 70.8 68.6 3.3% 142.8 139.0 2.8%
Food Atrium 39.6 38.8 2.0% 78.3 76.3 2.5%
Restaurant 44.0 37.3 18.2% 84.5 74.1 14.0%
4orth 7.8 3.0 157.8% 13.2 5.7 131.8%
Others 1.1 1.1 - 2.5% 2.1 2.2 - 3.8%
EBITDA 49.7 18.1 174.8% 96.8 34.4 181.5%
Bakery 12.7 4.1 207.0% 27.1 7.9 242.3%
Food Atrium 22.9 7.7 197.9% 43.1 13.0 232.1%
Restaurant 14.9 7.1 110.9% 25.4 15.8 61.2%
4orth (0.8) (0.1) 644.5% (1.3) (0.2) 496.3%
Others (0.1) (0.7) - 91.6% 2.5 (2.0) n.m.
EBITDA Margin (%) 30.4% 12.1% + 18.3 ppt 30.2% 11.6% + 18.6 ppt
Bakery 17.9% 6.0% + 11.9 ppt 18.9% 5.7% + 13.3 ppt
Food Atrium 57.9% 19.8% + 38.1 ppt 55.1% 17.0% + 38.1 ppt
Restaurant 33.9% 19.0% + 14.9 ppt 30.0% 21.2% + 8.8 ppt
4orth - 10.5% - 3.6% - 6.9 ppt - 9.7% - 3.8% - 5.9 ppt
5
2Q19 Financial Highlights
FINANCIAL PERFORMANCE
6
2Q19 Financial Highlights
FINANCIAL PERFORMANCE
S$ Million 2Q19 2Q18 Y-o-Y 1H19 1H18 Y-o-Y
Profit Before Tax ("PBT") 5.0 7.0 - 28.7% 8.7 13.0 - 33.4%
Bakery (1.9) 1.5 n.m. (1.4) 2.5 n.m.
Food Atrium 4.2 3.7 12.6% 7.2 5.8 23.8%
Restaurant 7.8 5.7 37.2% 11.5 13.1 - 12.6%
4orth (3.2) (0.2) n.m. (5.5) (0.5) 907.9%
Others (1.9) (3.7) - 48.2% (3.1) (7.8) - 60.2%
PBT Margin (%) 3.1% 4.7% - 1.7 ppt 2.7% 4.4% - 1.7 ppt
Bakery - 2.7% 2.2% n.m. - 1.0% 1.8% n.m.
Food Atrium 10.5% 9.6% + 1.0 ppt 9.2% 7.6% + 1.6 ppt
Restaurant 17.7% 15.3% + 2.5 ppt 13.5% 17.7% - 4.1 ppt
4orth - 41.0% - 7.0% - 34.0 ppt - 41.2% - 9.5% - 31.7 ppt
PATMI 1.0 2.4 - 57.9% 2.3 3.6 - 35.3%
PATMI Margin (%) 0.6% 1.6% - 1.0 ppt 0.7% 1.2% - 0.5 ppt
Core F&B PATMI 1.0 2.4 - 57.9% 2.3 3.6 - 35.3%
Core F&B PATMI Margin (%) 0.6% 1.6% - 1.0 ppt 0.7% 1.2% - 0.5 ppt
EPS (cents) 0.18 0.43 - 58.1% 0.41 0.64 - 35.9%
DPS (cents) 0.50 0.50 0.0% 0.50 0.50 0.0%
S$ Million 2Q19 FY18
Total assets 977 609
Cash and cash equivalents 128 185
Trade and other receivables 70 58
Inventories 16 11
Investment securities - 5
Other current assets 11 9
Current assets 226 268
Property, plant and equipment 186 173
Right-of-use assets 382 -
Investment securities 103 83
Non-current assets 751 340
Total liabilities 831 446
Trade and other payables 95 98
Lease liabilities 129 -
Current liabilities 391 305
Lease liabilities 266 -
Non-current liabilities 440 141
Borrowings and debt securities 222 226
Short term 54 98
Long term 169 128
Net debt 94 41
7
2Q19 Financial Highlights
FINANCIAL POSITION
BALANCE SHEET Highlights NET DEBT Position
61
41 41
62
94
0
20
40
60
80
100
0
50
100
150
200
250
FY16 FY17 FY18 1Q19 2Q19
Cash and cash equivalents (S$ m) (L)
Borrowings and debt securities (S$ m) (L)
Net debt (S$ m) (R)
S$ Million 1H19 1H18
Operating cash flow before working
capital changes 98 37
Net cash flow from operating
activities 38 16
Capital expenditure (24) (14)
Net cash flow used in investing
activities (38) (12)
Free cash flow 13 2
Net (decrease) / increase in bank
borrowings (4) 74
Net cash flow (used in) / from
financing activities (57) 60
Net cash flow (57) 65
8
2Q19 Financial Highlights
CASH FLOWS and KEY INDICATORS
CASH FLOWS FINANCIAL INDICATORS
Ratios 2Q19 FY18
Turnover Days
Trade Receivables Turnover
- Franchisee 103.6 90.8
- Non Franchisee 2.2 2.5
Total Receivables Turnover 7.5 7.3
Inventory Turnover 29.4 28.1
Trade Payables Turnover 35.8 29.3
Cash Conversion Cycle 1.1 6.0
Liquidity Ratios
Current Ratio 0.58 x 0.88 x
Quick Ratio 0.54 x 0.84 x
Debt Ratios
Net Debt / Shareholder's Equity 0.82 x 0.31 x
Total Debt / Shareholder's Equity 1.93 x 1.69 x
EBITDA / Interest expense 8.51 x 8.71 x
123
74
21
50
2
258 347
Philippines: 61
Indonesia: 197
9
Business Overview
BAKERY DIVISION
REVENUE and OUTLET Growth
PBT and PBT Margin
11.7 9.6 5.2 2.5(1.4)
3.8%3.2%
1.8% 1.8%
-1.0% -2%
0%
2%
4%
6%
(5)
0
5
10
15
FY16 FY17 FY18 1H18 1H19
PBT (S$ m) PBT Margin (%)
306.9 297.0 282.0
139.0 142.8
862 871 863842
875
600
700
800
900
0
100
200
300
400
FY16 FY17 FY18 1H18 1H19
Revenue (S$ m) No. of Outlets
1H19 REVENUE
270
Direct Operated Stores
1H19 OUTLETS
Franchise
605
52%29%
10%
8%
56%
44%
* Others: Indonesia, Philippines, Vietnam, Sri Lanka, Cambodia,
KSA West, Kuwait, Bahrain, Myanmar, Malaysia and India.
Inc
lud
ing
10
Business Overview
FOOD ATRIUM DIVISION
(7.1) 9.0
16.85.8 7.2
-4.5%
6.0%
10.7%
7.6%9.2%
-5%
0%
5%
10%
15%
(10)
0
10
20
30
FY16 FY17 FY18 1H18 1H19
PBT (S$ m) PBT Margin (%)
157.9 149.3 156.9
76.3 78.3
57 5560
5763
20
40
60
0
50
100
150
200
250
FY16 FY17 FY18 1H18 1H19
Revenue (S$ m) No. of Outlets #
REVENUE and OUTLET Growth
PBT and PBT Margin
14
27
5
3 6
55
40%
33%
15%
6% 6% Food Courts
1H19 REVENUE 1H19 OUTLETS
Direct Operated Restaurants
3
2
3 8
* Others: Taiwan, Malaysia and Cambodia# Comprise Food Courts and Direct Operated Restaurants
11
Business Overview
RESTAURANT DIVISION
24.0 25.7 23.3 13.1 11.5
17.4% 18.2%15.3%
17.7%13.5%
0%
5%
10%
15%
20%
25%
0
10
20
30
40
50
FY16 FY17 FY18 1H18 1H19
PBT (S$ m) PBT Margin (%)
137.7 140.7 152.3
74.1 84.5
24 2528 27
32
0
10
20
30
40
0
50
100
150
200
250
FY16 FY17 FY18 1H18 1H19
Revenue (S$ m) No. of Outlets
81%
10%
9%
REVENUE and OUTLET Growth
PBT and PBT Margin
24
7
1
32
1H19 REVENUE 1H19 OUTLETS
12
Business Overview
4ORTH DIVISION
(0.7) (0.4) (3.9) (0.5) (5.5)
-8.4%-4.5%
-27.4%
-9.5%
-41.2%
-60%
-40%
-20%
0%
(6)
(4)
(2)
0
FY16 FY17 FY18 1H18 1H19
PBT (S$ m) PBT Margin (%)
7.8 7.9 14.2 5.7
13.26 5
12
8
21
0
5
10
15
20
25
30
0
10
20
30
FY16 FY17 FY18 1H18 1H19
Revenue (S$ m) No. of Outlets
REVENUE and OUTLET Growth
PBT and PBT Margin
5
9
1
1
2
2
1
1H19 REVENUE
44%
48%
8%
1H19 OUTLETS
Total: 21 Outlets
THANK YOU
For enquiries, please contact:
CHAN Ying JianGroup Chief Financial Officer
POH Kah HweeInvestor Relations
T : +65 6285 6116
13