PT Ultrajaya Milk Industry & Trading Company Tbk. FY 2013 results update

Transcription

1 PT Ultrajaya Milk Industry & Trading Company Tbk. FY 2013 results update April

2 Disclaimer These materials are not intended to be a public offering document under Law of the Republic of Indonesia No.8 of 1995 on Capital Markets and its implementing regulations. Persons into whose possession these materials come are required to inform themselves about and to observe, any restrictions in distributing these materials. These materials may not be used for the purpose of an offer or an invitation in any circumstances in which such offer or invitation is not authorized. This information does not constitute and is not an offer to sell or the solicitation of an offer to buy securities (the Securities") of PT Ultrajaya Milk Industry & Trading Company Tbk (the Ultrajaya ) in the United States or elsewhere. Ultrajaya has not registered and does not intend to register the Securities under the U.S. Securities Act of 1933, as amended (the Securities Act ) and the Securities may not be offered or sold in the United States absent registration under the Securities Act or pursuant to an exemption from, or in a transaction not subject to, registration. Ultrajaya does not intend to make any public offering of the Securities in the United States or elsewhere. This document includes forward-looking statements. These statements contain the words "anticipate", "believe", "intend", "estimate", "expect, plan and words of similar meaning. All statements other than statements of historical facts included in this document, including, without limitation, those regarding Ultrajaya's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Ultrajaya's business and services) are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Ultrajaya to be materially different from results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Ultrajaya's present and future business strategies and the environment in which Ultrajaya will operate, and must be read together with those assumptions. These forward-looking statements speak only as at the date of this document. Predictions, projections or forecasts of the economy or economic trends of the markets are not necessarily indicative of the future or likely performance of Ultrajaya. Past performance is not necessarily indicative of future performance. The future financial performance of Ultrajaya is not guaranteed. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current views of Ultrajaya on future events. Ultrajaya expressly disclaims any obligation or undertaking to disseminate any updates or revisions, except as required by law, to any forward-looking statements contained herein to reflect any change in Ultrajaya's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. 1

3 Key highlights Q Year on year quarterly net sales up 24.8% to Rp. 931bn Price increase of approx. 10% implemented commencing December with full effect only visible in 2014 Achieved 48% market share in UHT milk and 58% market share in RTD Tea carton pack (Nielsen, Dec 2013) Year on year quarterly gross margins declined to 25.7% due to macroeconomic pressures Steady development of recently announced dairy farm project in Sumatera (PT Ultra Sumatera Dairy Farm ("USDF")) 2

4 Key highlights FY 2013 Net sales up 23.1% to Rp. 3,460bn with strong demand for our products across the range EBITDA growth of 2.7% to Rp. 596bn despite increasing inflation levels and macroeconomic pressures Depreciation of IDR against the USD Considerable increases in international milk powder prices Mitigated by sales prices increases approx. 5% starting April and approx. 10% starting December Lower year on year contribution from associated companies (mainly Kraft / Mondelez) New initiatives with joint venture with leading Japanese Tea company Ito-En to enter the PET-bottle tea segment Announced new venture to build the country s largest dairy farm with approx. 23,000 cows, situated in North Sumatera in the Indonesian milk-belt 3

5 Section 1 Key Highlights FY

6 Financial snapshot for 4Q 2013 Sales and growth (IDR bn, %) Gross profit and margin (IDR bn, %) YoY quarter growth: 24.8% YoY quarter growth: (4.7)% 33,7% 31,5% 32,3% 28,0% 25,7% Q12 1Q13 2Q13 3Q13 4Q13 EBITDA 1 and margin (IDR bn, %) YoY quarter growth: (25.8)% 4Q12 1Q13 2Q13 3Q13 4Q13 Net income and margin (IDR bn, %) YoY quarter growth: (53.1)% 20,1% 16,8% 23,9% 15,6% 11,9% 13,4% 14,3% 11,8% 6,9% 5,0% Q12 1Q13 2Q13 3Q13 4Q13 4Q12 1Q13 2Q13 3Q13 4Q13 Note: 1 EBITDA = gross profit less selling and general & administrative expenses plus depreciation and amortization 5

7 Financial snapshot for FY 2013 Sales and growth (IDR bn, %) Gross profit and margin (IDR bn, %) Growth: 23.1% Growth: 12.4% ,1% 29,3% EBITDA 1 and margin (IDR bn, %) Growth: 2.7% Net income and margin (IDR bn, %) Growth: (7.9%) 20,6% 17,2% 12,6% 9,4% Note: 1 EBITDA = gross profit less selling and general & administrative expenses plus depreciation and amortization 6

8 Ultrajaya Maintains its Leading Market Position with award-winning brands Competitive landscape and market share 1 UHT milk volume share Market Share : LIQUID MILK UHT Nielsen Retail Audit : Period Ending DEC13 48% 2 RTD tea in carton pack volume share 58% 2 18,500,000 18,000,000 Market Share (%) ,500,000 17,000,000 16,500,000 16,000,000 15,500,000 15,000,000 14,500,000 Market Volume (L) UHT Ultra Bendera Indomilk Milo Clevo 0 14,000,000 JUL12 AUG12 SEP12 OCT12 NOV12 DEC12 JAN13 FEB13 MAR13 APR13 MAY13 JUN13 JUL13 AUG13 SEP13 OCT13 NOV13 DEC13 Volume market growth CAGR 1 Ultrajaya continues its award winning streak 32,3% 19,0% 5,3% RTD tea Liquid milk Powder milk "Ultra Milk" Top Brand 2012 Hai Youth Brand Awards 2013 for Tek Kotak Notes: 1. Source: Nielsen 2. As of Dec

9 Section 2 Key Financials 8

10 We delivered 25% sales growth for Q4 and 23% for FY 2013 Sales (IDR bn) and growth (%) Q12 4Q

11 Our segments continue to demonstrate strong growth momentum in sales Sales (IDR bn) and growth (%) Dairy Tea and Health drinks Other Q12 4Q Q12 4Q Q12 4Q

12 Gross margins decline for FY 2013 a result of a depreciation in the rupiah and increase in milk powder prices COGS breakdown (IDR bn) 1, , COGS breakdown as a % of sales As % of net sales Q12 4Q13 Direct Materials 56.0% 59.5% 53.5% 62.8% Direct Labour 0.8% 0.7% 0.7% 0.6% Depreciation 3.9% 3.3% 3.9% 3.1% Electricity and Energy 2.3% 2.2% 2.3% 2.3% Repair and Maintenance 1.4% 1.5% 1.3% 1.5% Salary and Wages 1.0% 1.0% 0.7% 0.6% Q12 4Q Others 2.4% 2.5% 3.9% 3.4% Other COGS (excl direct materials) 11.9% 11.2% 12.9% 11.5% Total COGS 67.9% 70.7% 66.3% 74.3% 2013 saw an unprecedented cost increase with raw materials up 9.3% as a % of sales Others Salary and Wages Repair and Maintenance Electricity and Energy Depreciation Direct Labour Direct Materials 11

13 Operating expenses remain under control despite a significant increase in volumes Selling expense breakdown (IDR bn, %) General and administrative expense breakdown (IDR bn, %) 15,1% 14,1% 13,0% 12,5% ,9% 3,3% 2,9% 3,4% Q12 4Q Others Logistics- Freight Out A&P % of sales Q12 4Q Others Salary % of sales 12

14 EBITDA margin under pressure given significant depreciation of FX and cost increases EBITDA (IDR bn), margins and growth (%) Growth: 2.7% Growth: (25.8%) 20.6% 17.2% % % 4Q12 Margins as a % of net sales 4Q

15 Net profit also impacted by FX and cost increases Net profits (IDR bn), margins and growth (%) Growth: (7.9%) Growth: (53.1%) 12.6% 9.4% % % 4Q12 Margins as a % of net sales 4Q

16 Financial summary Financial year ending December 31, Fourth quarter, (IDR million) Revenue 2,102,384 2,809,851 3,460, , ,649 COGS (1,476,677) (1,908,109) (2,446,448) (494,502) (691,575) Gross profit 625, ,742 1,013, , ,074 Selling expenses (361,472) (366,413) (433,577) (112,719) (130,795) General & administrative expenses (82,176) (82,695) (117,578) (21,869) (30,889) EBIT 182, , , ,392 77,391 Finance income 16,417 12,085 22,439 (6,055) (5,754) Finance cost (27,644) (11,949) (7,955) (3,088) (2,530) Other expenses (14,014) 5,200 (40,392) 23,524 (4,680) Profit before income tax 156, , , ,772 64,426 Income tax expenses (28,369) (104,538) (111,593) (30,342) (17,182) Profit after tax 128, , , ,430 47,244 Minority interest (119) (475) (290) Net income attributable to owners of the company 128, , , ,905 47,534 EBITDA 298, , , , ,342 Note: 1 EBITDA = gross profit less selling and general & administrative expenses plus depreciation and amortization 15

17 Outlook for 2014 Ultrajaya anticipates robust industry fundamentals, with a large population and increasing urbanisation driving consumer demand in the medium term Macroeconomic pressures on margins expected to ease with a stabilising IDR and gradual effect of recent sales price increases We will continue to leverage on our key strengths a leading market position with strong product development track record, and stringent quality standards to capture demand in our core UHT products Delivering on our 2014 strategies, we aim to further enhance our product development, expand our distribution platform and increase our distribution and supply capacity through further capex investments and operational efficiency initiatives 16