Analysts Briefing 3 rd Quarter 2019 Earnings Results November 19, - - PowerPoint PPT Presentation

▶
analysts briefing 3 rd quarter 2019 earnings results
SMART_READER_LITE
LIVE PREVIEW

Analysts Briefing 3 rd Quarter 2019 Earnings Results November 19, - - PowerPoint PPT Presentation

Oct 20, 2022 128 likes •240 views

Analysts Briefing 3 rd Quarter 2019 Earnings Results November 19, 2019 01 Key Financial Highlights 02 Sales and Distribution 03 Latest Developments 04 Outlook 2 Key Financial Highlights Revenue decline attributed to weaker average

slide-1
SLIDE 1

Analysts’ Briefing 3rd Quarter 2019 Earnings Results November 19, 2019

slide-2
SLIDE 2

01 02 03 04

Key Financial Highlights Sales and Distribution Latest Developments Outlook

2
slide-3
SLIDE 3

Key Financial Highlights

4,443 3,927 1,535 1,316 9M2018 9M2019 3Q2018 3Q2019 Revenues Revenues Amounts in PHP thousands
  • Revenue decline attributed to weaker average
selling prices and peso appreciation
  • Current oil supply glut weighed down vegetable
  • il prices
  • United States operations up 5%
  • Desiccated coconut volume up 16%
  • Coconut milk powder volume up 72%
  • Overall production volumes relatively maintained
  • Allocation of existing capacity for research and
development activities
  • Scheduled plant modernization projects
3
slide-4
SLIDE 4

Key Financial Highlights

1,123 1,202 377 375 25% 31% 25% 28% 0% 5% 10% 15% 20% 25% 30% 35% 500 1,000 1,500 9M2018 9M2019 3Q2018 3Q2019 Gross Profit Gross Profit Gross Profit Margin Amounts in PHP thousands (except margins) 00
  • Significant margin improvement:
  • Larger contribution of higher margin products
  • Steady prices of coconut inputs
00 00
  • Controlled operating expenses due to cost
containment efforts
  • Effective tax rate of 9%
476 609 155 205 11% 16% 10% 16% 0% 5% 10% 15% 20% 200 400 600 800 9M2018 9M2019 3Q2018 3Q2019 Net Income Net Income Net Income Margin Amounts in PHP thousands (except margins) 00 00 00 00 4
slide-5
SLIDE 5

Balance Sheet

(Php, thousands) Sep 2019 2018 Cash 266,900 257,111 Receivables 572,606 615,987 Inventories 1,174,100 1,194,078 Other Current Assets 647,020 478,063 Total Current Assets 2,660,626 2,545,239 Property, Plant and Equipment 3,415,972 3,070,470 Goodwill and Intangible Assets 1,673,388 1,673,303 Other Noncurrent Assets 417,642 352,422 Total Noncurrent Assets 5,507,002 5,096,195 TOTAL ASSETS 8,167,628 7,641,434 ASSETS (Php, thousands) Sep 2019 2018 Loans Payable 2,151,163 965,598 Other Current Liabilities 457,259 1,721,037 Total Current Liabilities 2,608,422 2,686,635 Long-Term Debt 83,848 92,252 Other Noncurrent Liabilities 185,835 213,061 Total Noncurrent Liabilities 269,683 305,313 TOTAL LIABILITIES 2,878,105 2,991,948 Retained Earnings 1,463,288 1,404,301 TOTAL EQUITY 5,289,523 4,649,486 TOTAL LIABILITIES AND EQUITY 8,167,628 7,641,434 LIABILITIES AND EQUITY
  • PPE additions for new equipment
  • Higher collection of receivables
  • Short-term loan availment to fund certain asset
acquisitions prior to IPO
  • Fixed-interest rate for long-term debt
5
slide-6
SLIDE 6

Cashflow and Key Ratios

(Php millions, thousands) Sep 2019 2018 Income Before Income Tax 667,459 562,903 Depreciation and Amortization 162,411 155,509 Finance Charges 77,618 116,666 Working Capital Changes (47,191) (112,701) Others 4,857 (166,603) Net Operating Cashflow 787,536 439,108 Capital Expenditures (476,948) (292,257) Others (88,873) (287,666) Net Investing Cashflow (565,821) (579,923) Loan and Finance Lease Availments 3,385,849 2,483,954 Payments of Loans and Other Liabilities (3,596,349) (2,580,519) Net Financing Cashflow (210,500) (96,565) Effect of Foreign Exchange Rate (1,426) 2,725 Net Increase (Decrease) in Cash 9,789 (234,655) Beginning Cash 257,111 439,260 ENDING CASH 266,900 204,605 CASHFLOW Sep 2019 2018 Current Ratio 1.02 0.95 Debt-to-Equity 0.54 0.64 Return on Equity 12% 10% Return on Assets 7% 5% Earnings Per Share (Basic)* P0.19 P0.24 Earnings Per Share (Diluted)* P0.19 P0.19 KEY RATIOS *Based on weighted average outstanding shares pre-IPO
  • CAPEX investments for upgrading of
manufacturing capabilities
  • Healthy gearing levels
  • Double-digit return on equity
6
slide-7
SLIDE 7 34% 24% 5% 14% 14% 2% 7%

Product Sales Contribution

Desiccated Coconut Coconut Water Coconut Milk/Cream Sweetened Coconut Coconut Milk Powder Cooking Oil (RBD) Others 68% 5% 11% 9% 7%

Sales per Territory

USA Europe Philippines Australia Asia/Middle East
  • Desiccated coconut continues to be largest sales
contributor
  • Coconut water remains as fastest growing product
category
  • Majority of products are exported and distributed in the
United States
  • 89% exports; 11% domestic

Product Contribution and Area Sales

7
slide-8
SLIDE 8

Distribution Network

UHT Processing Plant Medina, Misamis Oriental Company-owned distribution facilities Well-appointed distribution partners Penetrate new territories; Expand within existing markets 8
slide-9
SLIDE 9

Spray Drying Line Expansion

  • Doubles annual capacity of coconut milk
powder to 4,800 metric tons
  • Features agglomeration technology

Renewal with Vita Coco

  • Higher minimum order quantity
  • Non-exclusive private labeling

Partial Debt Settlement

  • Payment of P800M from use of proceeds
  • Immediately realize lower interest costs
Axelum Production Facility Medina, Misamis Oriental

Latest Developments

9
slide-10
SLIDE 10

4Q19

Outlook

  • Seasonality effect driven by Christmas consumption uptick
  • Additional debt payment before year-end
  • Stable prices of coconut raw materials and peso foreign

exchange rate

10 2