Malee Group Public Company Limited

Transcription

1 Malee Group Public Company Limited Q1/2017 Opportunity Day 16 May 2017

2 Malee Group Public Company Limited Q1/2017 Opportunity Day 16 May 2017

3 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. 2

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

5 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 Malee Harvest Co., Ltd. (MHC) 100% 49% 49% Agro Business 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 Subsidiary Joint Venture Shareholding Structure (As of 9 May 2017) Share Information (As of 12 May 2017) Others 49.3% Abico Holdings Pcl 26.8% Kamolchat Jeungrungreungkit 19.2% Thai NVDR 4.6% 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 40%) 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: 14,350MB or 413MUSD Free Float: 47.77% * A new par value of THB 0.5 per share is effective on 16 May 2017, resulting in 280 million listed shares. 4

6 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. In April 1995, Abico Holdings Pcl acquired 40% from the existing shareholders. 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. On 15 March 2017, MMBC launched its second product, the jelly drink, under the brand of Jelly Vit On 3 March 1992, MALEE was listed on the Stock Exchange of Thailand (SET) The Company expanded its production base on the land of 30 rais in Sampran District, Nakhon Pathom Province On 15 May 1998, the Company s name was changed to Malee Sampran Pcl 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. 5

7 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 : Benefit from the great flood 2016: Historical Highest Sales 6,000 Unit: Baht Million 5,000 4,000 3,000 2,000 1, ,062 CMG Brand Net Profit 869 3,578 2,567 2,065 1,737 1,603 2,405 2,021 1,510 1, M/2017 2,615 2,706 2,822 2,964 2,140 2,357 1, ,600 1,682 1, (93) 118 (295) M/2017 CMG: Contract Manufacturing -1,000 6

8 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 7

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

10 Domestic RTD Fruit Juice Market MAT Mar 2017 Market Value of 13,903 MB, a Decrease of 0.3% YoY Super Economy Market (<20% RTD Fruit Juice) 2,399MB 17% (+9% YoY) Others 2,018MB 15% (-13% YoY) Premium Market (100% RTD Fruit Juice) 5,245MB 38% (+7% YoY) Source: Neilson Economy Market (20-39% RTD Fruit Juice) 2,976MB 21% (-10% YoY) Medium Market (40-99%% RTD Fruit Juice) 1,265MB 9% (+3% YoY) 9

11 Premium Juice UHT Market Share MAT Mar 2017 Market Value of 4,872 MB, Growth of 10% YoY Others 8% Cocomax 6% Tipco 32% Others Cocomax 9% 9% Tipco 28% Doikham 18% Doikham 22% Unif 14% Malee 22% Unif 12% Malee 20% MAT Mar 2016 MAT Mar 2017 Note: Including Coconut Water Source: Neilson 10

12 Sales Structure Domestic : International Business Brand : Contract Manufacturing 22% 28% 39% 34% 43% 43% 48% 55% 53% 55% Export CMG 78% 72% 61% 66% 57% Domestic 57% 52% 45% 47% 45% Brand M/16 3M/17 Q1/2017 Domestic sales growth was -13% YoY. Q1/2017 Export sales growth was +22% YoY M/16 3M/17 CMG: Contract Manufacturing Q1/2017 Brand sales growth was -4% YoY. Q1/2017 CMG sales growth was +1% YoY. 11

13 Domestic Business: New Product New Products NEW MALEE COCO TASTY, FRESH, AND NATURAL 12

14 MMBC New Product Launch Jelly Vit, the jelly drink was launched in the mid of March 2017, the second product after Kratos RTD Coffee. Market Position: Pretty Happy Drink Target: Adult Young Girls/ First Jobbers 13

15 Agenda Company Overview Business Update Results of Operations and Profitability Forward Looking 14

16 Financial Highlights Sales Revenue 7,000 6,000 5,000 4,000 Unit: Million Baht 5,389 4,771 6,541-1% YoY Q1/2017 Sales slightly decreased by 1% YoY due to the slowdown of domestic sales, especially from canned fruit. However, export sales continued to perform outstandingly, both in Brand and CMG Business. 3,000 2,000 1,533 1,515 1, Q1/16 Q1/ Net Profit Unit: Million Baht +8% 530 YoY Q1/16 Q1/17 Q1/2017 Net profit increased by 8% YoY, in accordance with the Company s strategy and internal management for efficiency enhancement and cost reduction. Net profit included loss of 7MB from MMBC and profit of 7MB from the disposal of investment in LCF, which is the reversal of impairment of goodwill in LCF in Q4/2016. MBCC loss was foreseen and going consistent with the Company s plan, while the loss was considered as a normal level for the business at the beginning stage launching new products into the market which requires high spending. 15

17 Profitability Margin 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% %Gross Profit Margin 33.7% 31.4% 32.2% 30.1% 31.3% Q1/16 Q1/17 Improved Q1/2017 GPM YoY was due to enhanced production efficiency and different product mix. 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% %Selling Expenses /Sales 18.6% 17.4% 14.4% 14.6% 13.4% Q1/16 Q1/17 Improved Q1/2017 selling expenses to sales was supported by the group s cost control policy and increased sales ratio of CMG. 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% %Net Profit Margin 6.4% 6.1% 8.1% 7.1% 7.7% Q1/16 Q1/17 Improved Q1/2017 NPM YoY was due to efficiency enhancement and cost reduction. 16

18 Statements of Financial Position % % % % % % % % 0.0% Unit: Million Baht 2,992 3,042 Total Assets 3,640 3, Q1/17 Increased total assets were mainly resulted from higher trade receivables as well as additional investment in machinery to improve production efficiency and prepare for increased level of production % % % % % % % Total Liabilities Unit: Million Baht 1,976 2,061 2,114 1, Q1/17 Increased liabilities were mainly due to higher trades payable due to the preparation of packaging materials for the upcoming crop season for the canned fruit production in Q2/ % % % % % % % % % 0.0% Equity Unit: Million Baht 1,575 1,687 1,250 1, Q1/17 Increased equity of parent Company's shareholders was contributed by operating profit during the year. 17

19 Liquidity 120.0% 110.0% 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% Q1/17 Current Ratio (x) Quick Ratio (x) Improved current ratio was mainly due to higher trade receivables, lower bank overdrafts and short-term loans from financial institutions as well as lower current portion of long-term liabilities, while a decrease in inventories resulting in higher quick ratio % 300.0% 250.0% 200.0% 150.0% 100.0% 50.0% 0.0% Q1/17 IBD/E (x) D/E (x) Reduced IBD/E and D/E was due to a decrease in bank overdrafts and short-term loans from financial institutions, long-term liabilities, and liabilities under financial lease agreements as well as an increase in retained earnings from incurring profits % % % % % % % % % % 0.0% Cash Cycle Days Q1/17 Improved cash cycle days was due to shortened inventory days and longer payment days. 18

20 Return to Shareholders 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% ROA 15.5% 14.8% 20.4% 15.8% 20.1% M/16 3M/17 Improved ROA was due to a substantial increase of the Company s earnings. 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% ROE 33.3% 29.3% 37.5% 28.6% 35.4% M/16 3M/17 Improved ROE was due to a substantial increase of the Company s earnings % 180.0% 160.0% 140.0% 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Unit: Baht * Remark: *Adjusted at par value of 1.00 Baht Dividend per Share The Company normally pays dividend twice a year. 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). 19

21 Agenda Company Overview Business Update Results of Operations and Profitability Forward Looking 20

22 2017 Looking Ahead Domestic Brand: Renovations/ Portfolio Management International Business: Strategic Expansion CMG: Diversification 21

23 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 22

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