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Nourishing Lives, Investing in the Future CNPF FY24 RESULTS PRESENTATION APRIL 2025
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LATEST FINANCIAL PERFORMANCE
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+11% +10% +15%4Q Growth year- on-year +11%+90 18.5B 1.1B15.0B 3.5B 24.5% REVENUE BRANDED REVENUE OEM REVENUE GROSS MARGIN NET INCOME UPDATED 3 FY 2024 FINANCIAL RESULTS HIGHLIGHTS bps FY Growth year- on-year +12% +7% +36% +14%+210 75.5B 6.3B59.3B 16.2B 26.1% bps
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33% 31% 31% 31% 30% 23% 24% 23% 22% 19%24% 24% 26% 29% 29%19% 22% 20% 18% 21% 48.3 54.7 62.3 67.1 75.5 FY20 FY21 FY22 FY23 FY24 DELIVERS CONSISTENT GROWTH OVER THE YEARS THROUGH ITS DIVERSIFIED PORTFOLIO CNPF’s consistent performance is driven by its diversified portfolio, allowing the company to capture opportunities and at the same time mitigating risks that any segment may be faced. 4 Sustained revenue growth performance year-on-year In PHP B Breakdown of YoY performance *Based on preliminary unaudited financial statements 12% FY24 vs FY23 * Meat Milk & Others OEM Marine 25% 10% 16% 11% 7% -1% 29% 5% -4% 36% 19% 13% 14% 8% 12% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% FY20 FY21 FY22 FY23 FY24 Total Branded OEM
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In PHP B 67.1 4.3 4.1 75.5 FY23 OEM Branded FY24 TOPLINE CONTINUES TO POST GROWTH AMIDST OEM RECOVERY AND BRANDED RESILIENCE 5 Revenue Growth Split 12% YoY FY24 vs FY23 Recovery in OEM following low base +36% YoY vs FY23 +7% YoY vs FY23 Quarterly Revenue Trend In PHP B 15.6 17.8 17 16.7 18.2 19.6 19.2 18.5 1Q 2Q 3Q 4Q 2023 2024 3% QoQ 4Q24 vs 3Q24 11% YoY 4Q24 vs 4Q23 Essentials & staples nature; resilient demand for value for money products CNPF’s topline growth has been broadly sustained in the fourth quarter, with the 11% year-on-year growth for the quarter contributing to FY24 revenue growth of 12% to P75.5 billion.
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12.5 11.9 16.2 FY22 FY23 FY24 4% YoY FY23 vs FY22 COMMODITY MOVEMENTS DRIVE STRONG 2024 OEM TOPLINE GROWTH In PHP B 6 OEM YoY Revenue Trend 36% YoY FY24 vs FY23 2023 2024 Skipjack Tuna Price Trend 2.6 2.6 3.2 3.1 3.0 3.9 4.3 4.5 3.5 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 15% YoY 4Q24 vs 4Q23 OEM Quarterly Revenue Trend Supply chain bottlenecks 22% QoQ 4Q24 vs 3Q24 Peak sales In PHP B While OEM topline normalizes in 4Q due to skipjack tuna price trends, an improving commodity environment and a favorable forex trend in 2024 supported FY 2024 growth of +36% to P16.2 billion
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13.0 14.6 13.9 13.6 14.2 15.3 14.7 15.1 1Q 2Q 3Q 4Q 49.8 55.2 59.3 FY22 FY23 FY24 In PHP B 7 Branded YoY Revenue Trend 7% YoY FY24 vs FY23 11% YoY FY23 vs FY22 BRANDED SEGMENT ACCELERATES IN 4Q AS MACROECONOMIC CONDITIONS IMPROVE Branded revenues, which accelerated in 4Q, delivered topline growth of 7% in FY 2024 to P59.3 billion coming from a high base supported by consumers prioritizing staples and value for money goods Branded Quarterly Revenue Trend In PHP B 10% YoY 4Q24 vs 4Q23 2023 2% QoQ 4Q24 vs 3Q24 2024 3.9 3.7 3.7 1.9 2.9 19.6 24.4 22.5 5.7 0.8 0 2 4 6 8 10 12 14 Dec 23 Mar 24 Jun 24 Sep 24 Dec 24 Domestic Inflation Trends Inflation Source: Philippine Statistics Authority, BSP Rice Inflation
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2,000 2,500 3,000 3,500 4,000 4,500 5,000 2020 2021 2022 2023 2024 24.0% 26.1% Favorable Input Costs… Gross margin improves YoY as input costs move favorably YoY Gross Margin Trend +210bps Gross Margin GROSS MARGIN GAINS IN 2024 WAS REINVESTED IN OPEX TO SUPPORT GROWTH 8 Milk Tuna 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2020 2021 2022 2023 2024 2023 2024 5Y Average 5Y Average 13.8% 15.5% FY23 FY24 Higher opex to sales YoY as margin gains were reinvested in demand generating and market share building activities +170bps Opex to Sales …Allowed for Reinvestments in OPEX Comms to promote Increased consumption Comms to reinforce value proposition
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13.4% 13.0% 12.2% 13.0% 12.7% 8.0% 8.5% 8.0% 8.3% 8.4% FY20 FY21 FY22 FY23 FY24 13.1% 12.9% 14.0% 13.8% 15.5% 24.7% 23.3% 23.1% 24.0% 26.1% 3.9 4.7 5.0 5.6 6.3 FY20 FY21 FY22 FY23 FY24 Discretionary Opex Used to Balance Gross Margin ChangesSustained Profit Growth Gross Margin Opex to Sales EBITDA Margin Net Margin CONSISTENT BOTTOMLINE GROWTH MIRRORS RISE IN SALES DRIVEN BY CNPF’S REINVESTMENT STRATEGY 9 Despite movements in gross margins across the years, net profit margins were largely sustained due to CNPF’s disciplined approach to expenditures. In PHP BIn PHP B 14% FY24 vs FY23
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30% initial capacity expansion 5,050 9,561 (1,061) (350) 13,200 (3,194) (3,401) (3,375) 3,230 Cash Beginning EBITDA Tax Working Capital and Others OCF + Cash Beg CAPEX Dividends Others Cash End FY 2024 Cash Flows HEALTHY OPERATING CASHFLOW FUNDED CAPACITY EXPANSION, HIGHER DIVIDENDS, & DEBT REPAYMENTS 10 In PHP M Increase in receivables and inventory offset increase in payables Dividends of Php0.96 per share Capacity expansion, CHI acquisition Acquisition of Coco Harvest, Inc. Room for further expansion Higher Dividends in 2024 0.24 Special 0.36 0.36 0.36 0.40 0.48 2020 2021 2022 2023 2024 0.24 Regular 0.48 Additional Special 0.96 2.7B net payment of debt, interest 140% FY24 vs FY23 At least 1,500 quality manufacturing jobs
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KEY 2024 TAKEAWAYS Consistent low to mid-teens growth in both topline and bottomline Margin gains reinvested in brand- building and promotions to sustainably support topline growth Continuous investment in the business while providing shareholders with healthy returns DIVERSE PORTFOLIO SUPPORTS STEADY, PROFITABLE GROWTH
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BUSINESS HIGHLIGHTS & FY 2025 OUTLOOK
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STEADFAST IN OUR STRATEGIC GROWTH PILLARS PROSPER SUSTAINABLYFUTURE- PROOFREINFORCESTRENGTHEN OUR BRANDS
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ESTABLISH RELEVANCE OF CORE THROUGH SUSTAINED COMMUNICATIONS • Promote health and wellness angle for Century Tuna, including regular Superbods activations • Highlight value for money and consistency with Argentina Corned Beef Reinforcing Value Proposition for Core Brands Through The Years 14 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 #1 #1 83% Dec 24 (MAT) Canned Tuna Market Share 52% Dec 24 (MAT) Corned Meat Market Share
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STRENGTHEN BRANDS ACROSS THE PORTFOLIO 15 CNPF Recent Brand Campaigns
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3% 7% 14% 21% 22% 23% 26% 28% 28% 76% 73% 70% 65% 64% 66% 65% 64% 65% 16% 16% 12% 12% 12% 9% 8% 7% 6% 16 REINFORCE AND BUILD MILK BUSINESS AS A NEW GROWTH ENGINE Build on Birch Tree Brand to Innovate within Powdered Milk 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Birch Tree Fortified BT Choco BT Adult Boost BT Fortified Relaunch BT Advance New Packs Competitor 1 Competitor 2 Innovations Market Shares
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Hunt’s Tomato Paste 17 INVESTING IN EMERGING CATEGORIES TO SUPPORT LONG-TERM GROWTH • Leverage on OEM capabilities to build Coco Mama • Leverage on existing capabilities on marine and meat to grow Goodest and Unmeat Scaling Up Emerging Businesses Coconut Pet Food Plant-Based, Refrigerated, Condiments 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Coconut OEM Business Coco Mama Unmeat Unmeat Shelf- Stable Hunt’s Baked Beans Century Tuna Nuggets Goodest Cat Hunt’s Acquisition PMCI Acquisition Goodest Dog Goodest Dry Range Coco Harvest Acquisition
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ALIGNING INVESTMENTS WITH OUR STRATEGIC GROWTH PILLARS Innovation pipeline, organic and inorganic opportunities, existing and adjacent categories SOLID CORE EMERGING MILK MARINE & MEAT 2014 Portfolio
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GROWTH ENGINE EMERGING Innovation pipeline, organic and inorganic opportunities, existing and adjacent categories SOLID CORE EMERGING MILK MARINE & MEAT MILK NEW PRODUCTS Branded Coconut, Condiments, Plant-Based, Refrigerated, & Pet Food SOLID CORE 2024 Portfolio ALIGNING INVESTMENTS WITH OUR STRATEGIC GROWTH PILLARS MARINE & MEAT
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20 EMBRACING SUSTAINABILITY AS PART OF GROWTH AMBITIONS Balancing the Needs of Stakeholders & Thinking Win-Win Lowered water and GHG intensity and increased renewable energy sourcing versus baseline year 9.99 CBM per ton product 2024 Water Intensity 45% vs 2018 baseline 0.35 Tonnes CO2e per ton product GHG Intensity 66% vs 2018 baseline 2024 Energy Source 2018 Energy Source ~100% Non- Renewable 69% Non- Renewable 31% Renewable Maintained strong partnerships with communities to promote circular economy Plastic Cleanup Partner Brands Century Tuna Saving Our Seas Coco Mama Save Our Coconuts Sustenido Bulan
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21 EMBRACING SUSTAINABILITY AS PART OF GROWTH AMBITIONS Balancing the Needs of Stakeholders & Thinking Win-Win Creating job opportunities as the business grows 17.9 19.6 22.2 28.3 29.3 FY20 FY21 FY22 FY23 FY24 48.3 54.7 62.3 67.1 75.5 Revenues Php Billions Jobs Supported Thousands 2024 People Statistics 96% ~50% 4.93 Retention rate of employees identified as greenzone talents Employees with company tenure longer than five years Employee engagement rating (out of highest rating of 6)
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Special 0.36 0.36 0.40 0.96 0.55 2021 2022 2023 2024 2025 Regular 2025 DIVIDENDS AT PHP 0.55/SHARE 31% Total Payout vs FY24 Net Income 22
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2024 - 2025F 2024 - 2025F 2025 OUTLOOK 23 Growth in the low to mid-teensTopline 2025 Outlook Growth in the low to mid-teens Bottomline 2025 Growth Drivers • Execute growth strategy with diversified portfolio • Improving consumer outlook supported by easing inflation • Margin pressures to be offset by opex spending to deliver bottomline growth in lockstep with topline growth • Early indications of recovering branded growth trajectory; Q1 tracking as planned Php 3-4 Billion 2025 Capex Guidance
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24 MAINTAIN TOPLINE AND BOTTOMLINE AMBITIONS FOR THE SHORT TO MEDIUM-TERM 10-15% Growth (2X GDP) 2024 2025F 2026F 2027F 2028F 2029F Core Growth & Emerging OEM Strengthen the Core Reinforce and Future-proof Portfolio Prosper Sustainably People Capability & Leadership Development Customer-Driven Commercial, Supply Chain & Sourcing Synergy Consumer-Led Innovation, Product Development & Brand Building End-to-End Digital Transformation ENABLED BY Corporate Governance, Sustainability & Financial Stewardship
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Nourishing Lives, Investing in the Future CNPF FY24 RESULTS PRESENTATION APRIL 2025
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ANNEX
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OTHER FINANCIALS
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• EBITDA growth tracking topline performance as input cost improvements are reinvested in demand generating activities • Earnings growth at 14%, broadly in line with topline • Revenues grew 12% mainly driven by OEM recovery • Branded up 7% as demand remains resilient, driven by essentials and staples nature of portfolio • OEM up 36% as volumes recover following easing commodities FY 2024 SUMMARIZED P&L 28 In PHP Mill FY 2023 FY 2024 Change YoY Net Revenues 67,124 75,490 12% Cost of Sales 50,987 55,796 9% Gross Profit 16,137 19,694 22% Operating Expenses 9,239 11,702 27% Operating Income 7,010 7,706 10% EBITDA 8,718 9,561 10% Financing Cost 484 312 -36% Income before Tax 6,526 7,394 13% Income Tax 947 1,061 12% NET INCOME 5,579 6,333 14% EARNINGS PER SHARE 1.58 1.79 14% Margins (%) Gross Profit 24.0% 26.1% +2.1 pps Operating Expenses 13.8% 15.5% +1.7 pps Operating Income 10.4% 10.2% -0.2 pps EBITDA 13.0% 12.7% -0.3 pps Net Income 8.3% 8.4% +0.1 pps
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FY 2024 SUMMARIZED BALANCE SHEET 29 • Cash conversion cycle at 80 days, lower versus 97 days as of end-2023 • Interest-bearing loans totaling PHP3.3 billion all peso-denominated • Increase in retained earnings driven by 2024 consolidated net income of PHP6.3 billion net of PHP3.4 billion dividends declared In PHP Mill FY 2023 FY 2024 Cash 5,050 3,230 Receivables 9,387 10,743 Inventory 16,902 17,718 Current Assets 34,476 35,548 PPE 8,980 10,039 Non-Current Assets 17,066 19,124 TOTAL ASSETS 51,542 54,671 In PHP Mill FY 2023 FY 2024 Trade and Other Payables 10,452 13,400 Notes Payable - Current 2,877 224 Long-Term Loan 3,157 3,100 TOTAL LIABILITIES 18,692 18,862 Retained Earnings 24,283 27,265 TOTAL EQUITY 32,851 54,671 BVPS (PHP/share) 9.27 9.80
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FY 2024 SUMMARIZED CASH FLOW • Increase in working capital as higher receivables and inventories offset higher trade and other payables • Capital expenditures include acquisition of coconut facility • Strong cash generation supported by healthy profitability 30 In PHP Mill FY 2023 FY 2024 Profit before Tax 6,526 7,394 Depreciation & Amortization 1,700 1,855 Working Capital Change 732 (566) Income Tax (1,040) (1,061) Others 392 528 OPERATING CASH FLOWS 8,311 8,150 Capital Expenditures (1,516) (3,194) INVESTING CASH FLOWS (1,422) (3,191) Interest Paid (354) (312) Change in Debt (1,790) (2,690) Dividends and Others (1,844) (3,777) FINANCING CASH FLOWS (3,988) (6,779) NET CHANGE IN CASH 2,901 (1,820) CASH, ENDING 5,050 3,230 FREE CASH FLOW 6,794 4,956 • Dividends paid in 2024 higher by 140% vs 2023
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15,836 15,060 FY23 FY24 9,387 10,743 FY23 FY24 16,902 17,718 FY23 FY24 10,452 13,400 FY23 FY24 Working Capital & Cash Conversion Cycle Receivables & Receivable Days Inventory & Inventory Days Payables & Payable Days* 97 80 121 116 7551 52 88 CCC LOWER YEAR-ON-YEAR Note: Cash conversion cycle computed based on period-end balances and trailing 12 month average daily sales / COGS *Working capital days • Cash conversion cycle at 80 days primarily driven by increase in payable days 31
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0.18 0.09 FY23 - FY24 0.03 0.00 FY23 - FY24 2.50 2.52 FY23 - FY24 18.1% 18.4% FY23 - FY24 FINANCIAL RATIOS • Attractive return ratios with ROE in the high teens% • Current ratio stable vs 2023 figure • Decrease in debt drives net gearing close to 0 in 2024 Gearing (x) Current Ratio (x) Net Gearing (x) Return on Equity Notes: Gearing Ratio = (Interest-Bearing Liabilities) / Equity Net Gearing = (Interest-Bearing Liabilities Less Cash) / Equity Return on Equity uses trailing 12 months’ earnings and average equity 32 • Decrease in gearing ratio due to decrease in debt, comfortable levels maintained
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This document is highly confidential and being given solely for your information and for your use and may not be, or any portion thereof, shared, copied, reproduced or redistributed to any other person in any manner. The statements contained in this document speak only as of the date which they are made, and the Company expressly disclaims any obligation or undertaking to supplement, amend or disseminate any updates or revisions to any statements contained herein to reflect any change in events, conditions or circumstances on which any such statements are based. By preparing this presentation, none of the Company, its management, and their respective advisers undertakes any obligation to provide the recipient with access to any additional information or to update this presentation or to correct any inaccuracies in any such information which may become apparent. This presentation contains statements, including forward-looking statements, based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements in particular involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. Any reference herein to "the Company" shall mean, collectively, Century Pacific Food, Inc. and its subsidiaries. investorrelations@centurypacific.com.ph +632 8633 8555 www.centurypacific.com.ph http://edge.pse.com.ph www.linkedin.com/company/century-pacific-food-inc-/ www.facebook.com/CenturyPacificFoodInc Ortigas Center, Pasig City, Philippines