1 st Qua rte r Y 2009 ina nc ia l Re sults Una udite d F F - - PDF document

1st Qua rte r F ina nc ia l Re sults

Una udite d F Y 2009

I nc o me Sta te me nt

F I NANCI AL PE RF ORMANCE

2

Php millio n

Q1 F Y 2008 Q1 F Y 2009 YoY Ne t Sale s and Se r vic e 10,859 13,268 +22%

Co st o f Sa le s a nd Se rvic e 8,237 10,267 +25% Gro ss Pro fit 2,622 3,002 +14% Ope ra ting E xpe nse s (1,706) (1,978) +10%

Ope r ating Inc ome 917 1,024 +12%

E q uity in ne t inc o me 10 13 Othe rs (17) (25)

Cor e E ar nings 886 793 (10% )

E BI T DA 1,567 1,781 +14% I mpa irme nt lo ss

• F

ina nc e c o st- Ne t (24) (219) F

• re ig n E

xc ha ng e lo ss-Ne t (276) (119) Ma rk va lua tio n g a in/ (lo ss) (189) (958) Ga in o n sa le s o f inve stme nts

• I

nc o me (L

• ss) Be fo re I

nc o me T a x 422 (285) (168%) Pro visio n (Be ne fit) fo r I nc o me T a x 188 (53) Ne t I nc o me (L

• ss)

234 (232) (199%)

Ba la nc e She e t

F I NANCI AL PE RF ORMANCE

Ca sh a nd F ina nc ia l De bt (PhP MM) F Y2008

Re taine d E ar nings 19,198 18,953 Othe r E quity 12,947 12,287

T

• tal E

quity 32,145 31,240

5000 10000 15000 20000 25000

FY2008 Q1 FY2009

C ash and E quivale nts + Financ ial Asse ts at FVPL + Available fo r Sale Financ ial Asse ts Financ ial De bt

Q1 F Y2009

Cash and Cash E quivale nts 8,195 8,968 Othe r Cur re nt Asse ts 15,184 17,675 Pr

• pe r

ty Plant and E quipme nt – ne t 24,327 24,420 Othe r non- c ur r e nt Asse ts (inc luding AF S) 10,225 9,457

T

• tal Asse ts

57,931 60,520

Curre nt L ia bilitie s 16,113 19,589 Nonc ur r e nt L iabilitie s 9,673 9,692

T

• tal L

iabilitie s 25,786 29,280

24,049 14,616 (PhP MM)

Ba la nc e She e t

8

20,548 14,499

F ina nc ia l Hig hlig hts

F I NANCI AL PE RF ORMANCE

BCF G 8,316 10,433 +25% Agr

• Industr

ial 1,494 1,509 +1% Commodity F

• ods (Ne t)

1,049 1,326 +26% T

• tal URC

10,859 13,268 +22% BCF G 614 914 +49% Agr

• Industr

ial 135 (9) (107% ) Commodity F

• ods

302 281 (7% ) Cor por ate (134) (162) T

• tal URC

917 1,024 +12%

Ope ra ting Inc ome (PhP MM)

Q1 F Y 2008

Sale s (PhP MM)

FY2008 FY2007

Q1 F Y 2009

YoY %

10,859 13.268 886 793 917 1,024

Ne t Sa le s

5,000 10,000 15,000

Co re E a rning s

200 400 600 800 1,000

2

Ope ra ting Inc o me

500 1,000 1,500

Bra nde d Co nsume r F

• o ds

F I NANCI AL PE RF ORMANCE

Philippine s 659 734 +11% Inte r national (38) 209 +650% Pac kaging (7) (29) (414% ) T

• tal

614 914 +49%

Ope ra ting Inc ome (PhP MM)

Philippine s 5,932 6,935 +17% Inte r national 2,020 3,212 +59% Pac kaging 364 286 (21% ) T

• tal

8,316 10,433 +25%

Sale s (PhP MM)

Q1 F Y 2009 Q1 F Y 2008

• Philippine sa le s sho w

impre ssive g ro wth o n the b a c k o f Sna c kfo o ds sa le s

• I

nte rna tio na l sa le s sho w do ub le -dig it g ro wth a c ro ss a ll c o untrie s.

• URCI

no w in the b la c k, with surg ing pro fits in T ha ila nd a nd Vie tna m le a ding the wa y

• Pa c ka g ing do wn a s a

c o nse q ue nc e o f the dro p in c o mmo dity pric e s wo rldwide

YoY %

3

CAT E GORY MARKE T SHARE

#1 #2 #3 Sna c ks* 47%

19% 8%

Ca ndie s 47%

10% 9%

Cho c o la te s 22%

10% 8%

Co o kie s 37%

22% 9%

Pre tze ls 69%

17% 10%

T

• ma to Sa uc e

9%

81% 6%

Ca nne d Be a ns 75%

12% 7%

Cup No o dle s** 42%

53% 1% CAT E GORY MARKE T SHARE

#1 #2 #3 RT D T e a ** 76%

11% 4%

Co ffe e 10%

80% 4%

* Snacks shares now include GMC market share (4%) ** RTD Tea, Cup Noodles – MAT Dec 08 Source: AC Nielsen survey MAT by value based on Oct / Nov 08 and Nov / Dec 08 readings

Dominant Mar ke t Shar e maintaine d

PHI L I PPI NE MARK E T

4

Ag ro -I ndustria l Gro up

F I NANCI AL PE RF ORMANCE

URC F e e ds

• L
• we r vo lume due to le ss

a nima ls o n the ma rke t

• Hig he r fe e d pric e s due

to e xisting inve nto rie s o f c o rn a nd fe e d whe a t; c o sts to de c line in line with dro p o f c o mmo dity pric e s wo rldwide URC F a rms

• Re c o ve ry o f me a t pric e s
• Hig h tra nsfe r pric e s fo r

fe e ds c ut into pro fita b ility

• Ma rg ins to impro ve o ve r

the c o ming mo nths

Ope ra ting Inc ome (PhP MM) Sale s (PhP MM)

Q1 F Y 2009 Q1 F Y 2008

F e e ds 64 45 (30% ) F ar ms 71 (54) (176% ) T

• tal

135 (9) (107% ) F e e ds 683 617 (10% ) F ar ms 811 893 +10% T

• tal

1,494 1,510 +1%

YoY %

6

Co mmo dity F

• o ds Gro up

F I NANCI AL PE RF ORMANCE

URC F lo ur

• Ma rg ins hit b y hig he r-

c o st whe a t this q ua rte r.

• Pric e de c re a se s this

q ua rte r a fte r hig h pric e s a t the e nd o f la st fisc a l ye a r URC Sug a r

• SONE

DCO re fine ry no w running

• Ma rg in sq ue e ze fro m

lo we r c o mmo dity pric e s wo rldwide

Ope ra ting Inc ome (PhP MM) Sale s (PhP MM)

Q1 F Y 2009 Q1 F Y 2008

F lour 139 123 (12% ) Sugar 163 158 (3% ) T

• tal

302 281 (7% ) F lour 1,280 1,465 +14% Sugar 495 715 +44% Subtotal 1,775 2,180 +23% T r ansfe r s (726) (855) +18% T

• tal

1,049 1,325 +26%

YoY %

7

PL ANS

Pla ns a nd E xpe c ta tio ns

Cor por ate

• Ra tio na lize c a pita l e xpe nditure s
• Re duc e wo rking c a pita l
• T

e mpo ra rily ha lte d sto c k b uy-b a c k pro g ra m; study divide nd pa yme nts

• Pre pa re fo r pa yme nt o f URC b o nd in 2010
• Pursue M&A c a utio usly

E xpe c tations

• Po sitive tre nds in do me stic BCF

G to b e drive n b y sna c kfo o ds a nd re sumptio n o f g ro wth in b e ve ra g e s

• I

nte rna tio na l o pe ra tio ns e xpe c te d to turn a pro fit

• We a ke r vo lume s in sug a r due to lo we r na tio na l o utput
• F

lo ur ma rg ins to de te rio ra te

• Cha lle ng e s fo r F

e e ds a nd F a rms, b ut re c o ve ry ne xt ye a r 10

T ha nk Yo u