Malee Group Public Company Limited

Transcription

1 Malee Group Public Company Limited Analyst Meeting Swissôtel LE CONCORDE 24 March 2017

2 Disclaimers The information contained herein is intended to represent the Company s operating and financial position at a given point in time and may also contain forward looking information which only reflects expectations based on the prevailing geo-political, economic and non-controllable factors. Such information has been obtained from sources believed to be most reliable and the means in analyzing and preparation of such information for disclosure are based on approve practices and principles in the investment industry. The views are based on assumption subject to various risks and uncertainties and no assurance is made as to whether such future events will occur. No assurance is made as to the accuracy or completeness of information presented in this document. 1

3 Agenda Company Overview Business Update Results of Operations and Profitability Forward Looking 2

4 Group Structure Malee Group Pcl. Manufacturing and Exporting A leading manufacturer and distributor of canned fruits, fruit juices, and beverages in Thailand 100% Malee Enterprise Co., Ltd. (MEC) Domestic Sale and Marketing 100% Agri Sol Co., Ltd. (AGR) Dormant 100% 49% 49% Malee Harvest Co., Ltd. (MHC) Agro Business 70% Monde Malee Beverage Corp. (MMBC) Beverage Business in Philippines Mega Malee Co., Ltd. (MMC) Natural Health Drinks 100% Malee Applied Sciences Co., Ltd. (MAS) Innovation Research & Development Lanchang Farm Co., Ltd. (LCF) Hydroponic Farm Subsidiary JV Shareholding Structure (As of 10 March 2017) Others 48.4% Abico Holdings Pcl 26.8% Kamolchat Juangroong ruangkit 19.4% Thai NVDR 5.4% Share Information (As of 22 March 2017) Stock Symbol: MALEE Industry and Sector: Agro & Food Industry / Food and Beverage No. of Listed Shares: 140,000,000 Shares Registered Capital: THB 140,000,000 Paid-up Capital: THB 140,000,000 Par Value: THB 1 per Share Listing Date: 13 March 1992 Foreign Limit: 49% (available 43.3%) Dividend Policy: Not less than 50% of the net profit from normal operation according to consolidated financial statement after deduction of tax revenue and legal reserve (with additional conditions) Market Capitalization: 13,580MB or 390MUSD Free Float: 47.77% 3

5 Milestones On 2 February 1978, Malee Sampran Factory Co., Ltd. was established with capital of 10MB as a manufacturer and distributor of canned food and canned fruits. On 12 January 2017, the Company set up a new subsidiary named Malee Applied Sciences Co., Ltd. (MAS) to provide innovation research and development for value added products and services. In April 1995, Abico Holdings Pcl acquired 40% or 10 million shares of 250MB from the existing shareholders. MALEE decreased its registered capital to 140MB, with paid-up capital of 140MB On 3 March 1992, MALEE was listed on the Stock Exchange of Thailand (SET) On 9 April 2013, MALEE decreased its registered capital to 182MB, with paid-up capital of 140MB The Company expanded its production base on the land of 30 rais in Sampran District, Nakhon Pathom Province On 26 September 1996, MALEE increased its capital from 250MB to 500MB On 15 May 1998, the Company s name was changed to Malee Sampran Pcl. On 9 Dec 1998, MALEE increased its capital to MB, with paid-up capital of 700MB In Q1/2016, MALEE, together with Monde Nissin Corporation (MNC) set up a joint venture company in the Philippines named Monde Malee Beverage Corporation (MMBC) and launched KRATOS RTD Coffee as the first product. On 12 May 2016, the Company s name was changed to Malee Group Pcl. On 22 August 2016, the Company signed a joint venture agreement with Mega Lifesciences Pcl to develop natural health-focused RTD products. 4

6 10-Yr Historical Performance 7,000 Prior to 2009, major contribution of CMG was from canned fruits. Discontinued the canned pineapple production in 2009 and canned sweet corn in Flood Impact 2016: Historical Highest Sales 6,000 Unit: Baht Million 5,000 4,000 3,000 2,000 1,000 0 CMG Brand Net Profit 2, ,578 2,567 2,065 1,737 1,603 2,797 2,405 2,021 1,510 1, ,964 2,822 2,615 2,706 2,357 1,931 2,140 1,600 1,682 1,537 1, (93) (295) ,000 CMG: Contract Manufacturing 5

7 Malee Brand Portfolio Daily Nutrition Malee 100% Juice UHT Malee 100% Juice Pasteurize Malee Coco Malee Nutrients Malee i-corn Functionality Tactical Malee Probiotics Malee Healti Plus Malee Light Malee Food Service Malee Tropical Malee Canned Fruit Canned Fruit First Choice Farmer OTHERS Dairy Product Chokchai Farm UHT Pasteurize Canned Sweetened Condensed Non Dairy Creamer Other Beverages TurBusta Maxx 6

8 Agenda Company Overview Business Update Results of Operations and Profitability Forward Looking 7

9 Domestic RTD Fruit Juice Market MAT Dec 2016 Market Value of 13,982 MB, Growth of 1% YoY Super Economy Market (<19% RTD Fruit Juice) 2,385MB 17% (+13% YoY) Others 2,055MB 15% (-13% YoY) Premium Market (100% RTD Fruit Juice) 5,195MB 37% (+7% YoY) Source: Neilson Economy Market (20-39% RTD Fruit Juice) 3,097MB 22% (-7% YoY) Medium Market (40-99% RTD Fruit Juice) 1,252MB 9% (+2% YoY) 8

10 Premium Juice UHT Market Share MAT Dec 2016 Market Value of 4,802 MB, Growth of 9% YoY UFC 1% Cocomax 5% Others 6% Doikham 18% Tipco 33% Others UFC 8% 1% Cocomax 9% Tipco 28% Doikham 20% Unif 15% Malee 22% Unif 13% Malee 21% MAT Dec 2015 MAT Dec 2016 Note: Including Coconut Water Source: Neilson 9

11 Sales Structure Domestic : International Business Brand : Contract Manufacturing 90% 80% 70% 60% 50% 40% 30% 20% 79% 71% 69% 68% 66% 63% 57% 58% 21% 29% 31% 32% 34% 37% 43% 42% 60% 55% 50% 45% 40% 35% 52% 55% 56% 48% 45% 44% 58% 52% 53% 54% 53% 48% 47% 46% 42% 47% 10% 30% 0% 25% Domestic Export Brand CMG: Contract Manufacturing CMG 2016 Domestic sales growth was 3% YoY Export sales growth was 67% YoY Brand sales growth was 5% YoY CMG sales growth was 39% YoY. 10

12 Malee Applied Sciences New Subsidiary Malee Applied Sciences Co., Ltd. (MAS), wholly owned by MALEE was set up on 12 January Initial capital investment is Baht 10 million. MAS will enhance the Company s capability in innovation research and development for value added products and services. MAS also hopes to support farmers income with its value added byproducts. 11

13 Agenda Company Overview Business Update Results of Operations and Profitability Forward Looking 12

14 Financial Highlights 4,000 3,500 3,000 2,500 2,000 1,500 1, Sales Revenue Unit: Million Baht 1,276 1,252 1,319 1,542 1,533 1,741 1,760 1,507 7,000 6,000 5,000 4,000 3,000 2,000 1, % YoY 1,542 1, % YoY 6,541 5,389 Q4/15 Q4/ Q4/2016 Sales growth dropped YoY due to slower domestic consumption Sales growth was supported by sales increase both in Brand and CMG, both of which rose domestically and internationally. In 2016, the Company achieved its highest record of annual sales since establishment in Remark: Sales reclassified from net sales of trade rebates Unit: Million Baht Net Profit % YoY % YoY 530 Q4/2016 Net profit growth was attained by the Company s strategy and internal management for efficiency enhancement and cost reduction 2016 Net profit growth was marked by improved sales revenue while costs were well managed including production cost, selling expenses, and finance costs Net profit achieved the second highest profit since 2012, the year in which the Company benefited from the great flood in Q4/15 Q4/ Loss recognized of 40MB from MMBC in Q4/2016 was foreseen and according to plan of the Company that there was high spending at the beginning as we launched more new products into the market. 13

15 Profitability Margin % % % % 1 5.0% %Gross Profit Margin 30.9% 32.3% 33.1% 29.7% 29.9% 32.2% 34.0% 32.2% % % % % 1 5.0% 29.7% 32.2% 31.4% 32.2% Q4/15 Q4/ Remark: Shut down expense and damaged goods reclassified from administrative expenses to cost of sales Q4/2016 %GPM improved YoY due to enhanced production efficiency %GPM increased as a result of reduced cost of production per unit in relation to higher utilization rate as well as improved cost management % % % % 1 5.0% %Selling Expenses /Sales 17.1% 17.1% 20.3% 15.4% 14.6% 13.8% 16.2% 12.9% % % % % 1 5.0% 15.4% 12.9% 17.4% 14.4% Q4/15 Q4/ Improved %selling expenses to sales was supported by the group s cost control policy and increased sales ratio of CMG. Remark: Trade rebates reclassified from selling expenses to net sales % 16.0% 14.0% 12.0% 1 8.0% 6.0% 4.0% 2.0% %Net Profit Margin 6.5% 6.5% 4.4% 6.8% 7.1% 8.1% 9.1% 7.8% % 16.0% 14.0% 12.0% 1 8.0% 6.0% 4.0% 2.0% 6.8% 7.8% 6.1% 8.1% Q4/15 Q4/ Q4/2016 %NPM improved YoY due to efficiency enhancement and cost reduction, despite sales drop YoY %NPM increased from improved sales revenue while costs were well managed including production cost, selling expenses, and finance costs. 14

16 Statement of Financial Position Total Assets Unit: Million Baht 2,944 2,843 2,977 3,042 3,070 3,213 3,406 3,640 Increased assets from the end of last year were mainly resulted from additional investment in machinery as well as higher inventories Total Liabilities Unit: Million Baht 1,814 1,685 1,831 1,788 1,705 1,804 1,944 2,061 Increased liabilities from the end of last year were due to higher short-term loans for investment in machinery and liabilities under financial lease Equity Unit: Million Baht 1,126 1,156 1,144 1,250 1,359 1,403 1,458 1,575 Increased equity of parent Company's shareholders was contributed by operating profit during the year. 15

17 Liquidity Reduced current ratio YoY was mainly due to lower trade receivables, higher short-term loans, and higher liabilities under financial lease, while higher inventories resulted in decreased quick ratio. Current Ratio (x) Quick Ratio (x) IBD/E (x) D/E (x) Higher IBD/E from the end of 2015 was due to higher short-tem loans from financial institutions and increased liabilities under financial lease agreements. Lower D/E ratio was resulted from reduced trade payables while the Company s retained earnings increased following incurring profits Cash Cycle Days Improved cash cycle days YoY was due to shortened collection days and inventory days, in spite of reduced payment days. 16

18 Return to Shareholders 25.0% % 1 5.0% Remark: Annualized 45.0% % % % 1 5.0% Remark: Annualized 15.0% 15.1% 13.7% 14.8% 15.7% 19.2% 21.8% 20.4% ROA 28.0% 27.8% 27.3% 29.3% 28.6% 32.5% 39.9% 37.5% ROE Unit: Baht * Remark: *Adjusted at par value of 1.00 Baht Dividend per Share Improved ROA and ROE YoY was supported by a substantial increase of net profit. The Company has continuously paid dividend to its shareholders twice a year since 2012 operation period. The Company has a policy to pay dividend not less than 50% of the net profit from normal operation according to consolidated financial statement after deduction of tax revenue and legal reserve (with additional conditions). 17

19 Agenda Company Overview Business Update Results of Operations and Profitability Forward Looking 18

20 2017 Looking Ahead Domestic Brand: Renovations/ Portfolio Management International Business: Strategic Expansion CMG: Diversification 19

21 Share Endorsements Partn er Added to MSCI Global Small Cap Indexes Effective as of the close of 30 November 2016 Very Good Level of CG Scoring 20

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