DSG International (Thailand) PLC

Transcription

1 DSG International (Thailand) PLC Opportunity Day September 10,

2 Agenda 1. Overview By Mr. Ambrose Chan, CEO 2. H1/2015 Financial Performance By Mr. Yeoh Aik Cheong, CFO 3. Market Update By Ms. Chachanee A., GM 4. Outlook By Mr. Ambrose Chan, CEO 5. Q&A 2

3 Agenda 1. Overview By Mr. Ambrose Chan, CEO 3

4 Executive Summary The overall SEA economy has remained sluggish from depressed purchasing power of consumers, low foreign investments & exports Thailand: Baby disposable diaper market value declined due to the sluggish economy Intense price competition to defend market shares and stimulate demand Malaysia: Further dampened customer spending after GST implementation, weakening oil export earnings and political sentiments Positive momentum for PetPet/Fitti market shares in early Q3 after re-launched Indonesia: High double digit sales growth from last year through trial promotions and commercial investments Fitti DayPants USP is well received by consumers Potential market stability is driven by: Favorable consumer response to BabyLove NanoPower launch Sustaining sale momentum from BabyLove, PetPet and Fitti DayPants in major markets Certainty consolidate its adult category market leadership in all segments 4

5 Agenda 2. H1/2015 Financial Performance By Mr. Yeoh Aik Cheong, CFO 5

6 Financial Highlights H1/2015 Revenue decreased by 7.2% to Baht 3,829 m, mainly due to low consumer sentiment and weak economic conditions and negative FX translations to Baht in major SEA markets Net profit dropped by 91% to Baht 28 m from H1/2014, resulting from: Depressed gross margin from FX impact and depressed competitive pricing due to weak consumer sentiment in major markets Commercial investments to launch BabyLove NanoPower in Thailand Continuous commercial investments in Indonesia to accelerate the sales growth Unfavorable FX impact on COG and consolidated FX translation to Baht Countermeasure to stabilize the group profitability Vigilant hedging strategy on USD to reduce significant impact from raw material cost Continuous improvement on our operational and cost efficiency 6

7 Financial Highlights H H %YoY Sales Revenue 3, , % Net Profit % Normalized Net Profit (excl. FX volatility) % EPS % NAV per share (Net Asset Value) Key Financial Ratio % Variance Gross Profit margin 33.6% 35.4% -1.8% SG&A (% of sales) 30.2% 26.8% +3.4% Net Profit margin 0.74% 8.00% -7.26% Gearing Ratio Net Debt/Equity Net profit decreased 91.4%, resulting from increased A&P for new product introduction, price promotion to defend against competitors and depreciation of Ringgit and Rupiah Interim dividend will be paid on Sep 10 at the rate of Baht 0.03 per share or Baht 37.8 million 7

8 Sales Growth Total Gross Sales Adult Baby In past 3 years, gross sales grew by 10.3% Adult and Baby categories out-performed FMCG industries in all key markets Pant segment continued to drive both Baby and Adult category growth H1/2015 gross sales declined mainly due to shrunk baby market but be mitigated by adult category growth Adult category grew by 24.3% which continued to strengthen its market leadership in Thai market Baby category growth declined 11.2% in value from intense competition and sluggish economy 8

9 Sales Revenue by Segment H1/2014 H1/2015 By Category By Country 9

10 Normalized Net Profit Million Baht %Margin Normalized Net Profit was applied to exclude the impact of FX volatility Lower profit margin in H1/2015 due to intense competition and weak consumer sentiment 10

11 Cash Flow Movement (Jan 1- Jun 30, 2015) (Unit: Million Baht) Closing bal Forex Translation Capex External Funds Cash fr operations Opening bal Capital expenditure remained to invest for long-term growth Capex funded by cash from operations and external borrowings 11

12 Working Capital Management Cash Conversion Cycle Inventory Days Unit: Month YoY Unit: Month YoY H H1 Account Receivable Days H H1 Account Payable Days Unit: Month Unit: Month YoY YoY H H H H1 12

13 Leverage Ratios Debt to Equity Ratio Interest Coverage Ratio YoY YoY H H H H1 13

14 Agenda 3. Market Update By Ms. Chachanee A., GM 14

15 DSG actively brings Innovation to Thai Market Launch BBL PlayPants Launch BBL NightPants Launch BBL DayPants Re-Launch BBL NanoPower New claim: Power Absorbent Gel Launch Certainty ActivePants Re Launch Certainty Pants Re Launch Certainty Tape New packaging Launch Certainty DayPants Re Launch Certainty SuperPants New packaging Launch Certainty DayPants New Size XL 15

16 DSG Thailand - Market Performance YTD Jul Diapers market growth -0.1% but DSGT off-take growth +6.0% (Source : Nielsen Retail Audit) Despite slow economy & political uncertainty, DSGT still continues to grow market share in both Baby & Adult segments 16

17 Agenda 4. Outlook By Mr. Ambrose Chan, CEO 17

18 Outlook H2/2015 is expected to be very challenging for SEA markets: Thai s export has continued to subdue and no clear sign of recovery despite various stimulus by the government including Baht depreciation Malaysia, being hit by political scandal, low commodity prices, and record low Ringgit in 17 years will be turbulent in the next 6-12 months Indonesia is being affected by low commodity prices, decline export and weakening of Rupiah which resulted in the low domestic consumption Against these backdrop, SEA consumer confidence is still low, which has significant impact to most sectors including the relatively recession proof FMCG industry Strengthening of USD vs regional currencies, esp. after anticipated U.S. interest rate hikes, might further weaken the Asian currencies BabyLove NanoPower is on track to strengthen the brand market position Certainty will continue to strengthen its leadership position to accelerate market penetration 18

19 Agenda 5. Q&A 19

20 Thank You