Analysts’ Briefing - F&N
Transcript of Analysts’ Briefing - F&N
Fraser & Neave Holdings Bhd
Analysts’ Briefing 8 May 2013
(RM mil) 1H2013 1H2012 Change vs. LY
Revenue 1,756 1,474 +19.1%
PBIT 135 110 +22.1%
PBT 132 111 +18.6%
PAT 112 149 -24.9%
Financial highlights
• Group revenue and operating profit gained 19% & 22% respectively :
• Recovery of Dairies Thailand to pre-flood levels
• Strong CNY volume from Soft drinks
• Intense price competition & distribution restructuring affected Dairies
Malaysia sales
• Profit after tax declined 25% - LY’s tax include deferred tax asset on halal hub
Key ratios 1H 2013 1H 2012 Change
EPS sen 30.8 41.3 -25.4%
NAV RM 4.30 4.09 +5.1%
Net DPS - interim sen 20.0 20.0 -
Share price @ 31 Mar RM 18.50 18.88 -2.0%
ROE % 7.2 10.1 -28.7%
Financial highlights
• EPS at 30.8 sen
• Ordinary dividend maintained at last year‘s level of 20 sen per share
1,474
1,756
44 -39
277 -0.1
1300
1350
1400
1450
1500
1550
1600
1650
1700
1750
1800
HY2012 Soft drinks Dairies M Dairies T Properties /Others
HY2013
Revenue
+19%
• Key drivers of the 19% revenue growth are :
• Recovery of Dairies Thailand to pre-flood levels
• Soft Drinks registered strong CNY sales
• Dairies Malaysia’s revenue contracted 7% due to competitive pricing pressure and distribution restructuring exercise
• Absence of property revenue – yet to launch S13 project RM mil
110135
513
63 -56
0
50
100
150
200
250
HY2012 Soft drinks Dairies M Dairies T Properties /Others
HY2013
PBIT
+22%
• Group PBIT gained 22%, mainly driven by :
• Strong post flood recovery in Thailand
• Favourable commodity prices & soft drinks sales mix
• RM 56mil drop in property contribution – last year recognition of gain from divestment of PJ land
RM mil
718.7
762.4
690700710720730740750760770
1H2012 1H2013
Soft drinks
• Volume increased 6%, driven by domestic sales. Seasons, Ice Mountain & Red Bull continue to register double digit gains
• Effective CNY activation boosted 100Plus & F&N fun flavour Q2 volume by 12% & 14% respectively
• Revenue gained 6%, in line with volume growth
• Profit improved 7% on better volume & lower input costs
• MyCola - launched in East Malaysia in Nov 12 showing good growth momentum. Plans in place to launch in Pen Malaysia soon
+6%
27.7
29.61.5
1.4
26
27
28
29
30
31
32
1H2012 1H2013
+6%
66.871.4
66
66.2
66.4
66.6
66.8
67
1H2012 1H2013
+6.9%
Volume
Revenue
PBIT RM mil
RM mil
Phy case (mil)
Domestic
Export
Export
Domestic
29.2
31.0
Dairies Malaysia
• Volume declined 2% while revenue contracted 7%, mainly from lower domestic sales
• Domestic sales impacted by :
• Price competition in on-premise channel
• Distribution restructuring
• Challenges in Modern Trade channels
• PBIT growth came from favourable commodity prices. LY’s profit impacted by RM 11mil accelerated depreciation of PJ building
• F&N Hi-Cal launched in Nov 12 registered positive growth as it is well received by consumers
4.4 3.9
0.7 1.1
0
1
2
3
4
5
6
1H2012 1H2013
523.9
484.9
460
470
480
490
500
510
520
530
1H2012 1H2013
12.1
24.8
0
5
10
15
20
25
30
1H2012 1H2013
-2%
-7%
+104%
Volume
Revenue
PBIT
RM mil
RM mil
Eq ctn (mil)
5.1 5.0 Export
Domestic Domestic
Export
Dairies Thailand
• Dairies Thailand volume & revenue jumped 109% and 120% respectively ~ full recovery to pre-flood levels
• With capacity restored, domestic, Indochina and export markets registered strong volume gains
• BHT 1.1 bil admitted by insurers & recognised. Todate, BHT 1.062 bil payment received from insurers
52.9
110.5
0
20
40
60
80
100
120
1H2012 1H2013
+109%
230.7
508.2
0
100
200
300
400
500
600
1H2012 1H2013
+120%
-23
39.7
-30
-20
-10
0
10
20
30
40
50
1H2012 1H2013
Volume
Revenue
+>100% PBIT
RM mil
RM mil
MT (000)
Properties / others
• Properties continue to focus on planning activities for PJ Section 13 project
• Section 13 project launch delayed to next financial year due to dissolution of local government in preparation for GE13
• Marketing activities for Phase 1 to start in Q2/Q3 2014
• LY’s PBIT included RM55 mil capital gain on disposal of PJ Section 13 land
0.4 0.3
0.0
0.1
0.2
0.3
0.4
0.5
1H2012 1H2013
54.3
-1.4
-10.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
1H2012 1H2013
-25%
->100%
Revenue
PBIT
RM mil
RM mil
Business outlook & prospects
Soft drinks
• Maintain 100Plus leadership
• Seasons brand re-alignment
• Continue MyCola momentum
• Protect F&N fun flavours
Dairies Malaysia
• Defending SCM share
• Grow EM category,
• Stimulate take home consumption
Dairies Thailand
• Strengthening SBC
• Defend EM
• Grow UHT & STM
• Accelerate Indochina penetration
• BNM forecast 4.5%- 5.5% economic growth in 2013
• RM strengthening against USD
• Inflation remain low, consumer spending expected to remain robust
• Commodity prices trending up
• Interim net dividend of 20 sen per share
• Sustainable dividend without special dividend
• Payment date 1 Aug 2013
Interim dividend per share (sen) nett
Dividends
12.8 16.5
20 20 20
15
0
5
10
15
20
25
30
35
40
1H09 1H10 1H11 1H12 1H13
Special Ordinary
35
Q&A