Quarter 2015 - TodayIR · 23rd February 2016 4th Quarter 2015 Financial Results . Disclaimer ......

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4 th Quarter 2015 23 rd February 2016 4 th Quarter 2015 Financial Results

Transcript of Quarter 2015 - TodayIR · 23rd February 2016 4th Quarter 2015 Financial Results . Disclaimer ......

Page 1: Quarter 2015 - TodayIR · 23rd February 2016 4th Quarter 2015 Financial Results . Disclaimer ... This presentation is provided without any warranty or representation of any kind,

4th Quarter 2015

23rd February 2016

4th Quarter 2015 Financial Results

Page 2: Quarter 2015 - TodayIR · 23rd February 2016 4th Quarter 2015 Financial Results . Disclaimer ... This presentation is provided without any warranty or representation of any kind,

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

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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)

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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%)

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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

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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

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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%

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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

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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

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2011 2012 2013 2014 2015

Net asset value(NAV) and Cash & Cash equivalents

Cash and cash equivalents Net asset value

S$m S$m

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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

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2010 2011 2012 2013 2014 2015

%

Dividend payout ratio

Dividend payout ratio

Page 16: Quarter 2015 - TodayIR · 23rd February 2016 4th Quarter 2015 Financial Results . Disclaimer ... This presentation is provided without any warranty or representation of any kind,

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Strategy & Outlook

Pushing Through Headwinds in Difficult Economic Environment

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Strategy & Outlook – Business in a difficult economic environment

Branding – Increased momentum in key growth markets like China

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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

Page 23: Quarter 2015 - TodayIR · 23rd February 2016 4th Quarter 2015 Financial Results . Disclaimer ... This presentation is provided without any warranty or representation of any kind,

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.

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For Investor Relations, please contact:

Candy ChngGroup Corporate Affairs & Investor Relations

[email protected]

Tel: (65) 6753 3088

www.supergroupltd.com

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