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2 nd Quarter & 1 st Half 2015 Financial Results 11 August 2015

2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

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Page 1: 2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

2nd Quarter & 1st Half 2015 Financial Results 11 August 2015

Page 2: 2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

Disclaimer

The presentation is prepared by Super Group Ltd (“Super” or “the Group”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any class of securities of the Group in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and does not purport to be a complete description of the Group, its business, its current or historical operating results or its future business prospects. The statements are not and should not be construed as management’s representation on the future performance of Super. Our forward-looking statements involve risks and uncertainties, many of which are beyond our control, and important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, increased competition, pricing actions, continued volatility in commodity costs, increased costs of sales, risks from operating globally and tax law changes. This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Group specifically disclaim all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentation.

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Page 3: 2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

Content

Performance Summary for 2Q15

Segmental Review Balance Sheet Highlights

Appendix

Profit & Loss Highlights

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Page 4: 2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

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Performance Summary for 2Q15 Performance in certain core markets improved

Operations’ ability to generate income remains intact - EBITDA margin improved to 16.4% despite lower net profit Certain core markets saw improved performance - Branded Consumer (“BC”) sales from core Asian markets such as Thailand, Myanmar and China continued to

improve but were offset by lower sales from markets such as Philippines and Eastern Europe - Food Ingredient (“FI”) registered stronger sales in Indonesia while lower sales were recorded in Philippines

and China

Strong balance sheet - Cash and cash equivalents of S$103.4m - NAV per share at 44.9 cents – up 0.6% YoY

Continue to manage challenges amid the competitive landscape - Group’s core markets continue to be impacted by weaknesses in respective domestic currencies which depreciated against US Dollar/ Singapore Dollar in 2Q15 - Weakened consumer spending within the Asian markets

Continue to focus on Branding, Product Innovations and Geographical Diversification to drive long-term

growth

Page 5: 2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

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Sales Branded Consumer (“BC”) sales 4% to S$80.0m Food Ingredients (“FI”) sales 5% to S$45.5m

S$125.5m

Operating Profit Gross profit margin (“GPM”) remained constant at 36% in 2Q15

Selling and distribution expenses stable at 12% of total sales

General and administrative expenses declined marginally to S$13.8m S$15.5m

Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) – Expiry of an overseas subsidiary’s tax incentive in July 2014 – Withholding tax expense on dividend remittances from an overseas

subsidiary S$11.1m

EBITDA MARGIN EBITDA margin improved to 16.4% despite lower net profit Reflects the resilience of the Group’s income generating capability

16.4%

5%

12%

29%

Performance Summary for 2Q15 Income generating capability remained intact

0.1 ppt

Page 6: 2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

Segmental Review BC remained the major revenue contributor

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Super’s integrated business model

Downstream

BC segment

Upstream

FI segment

FI accounts for 36% of sales (2Q14: 36%) BC accounts for 64% of sales (2Q14: 64%)

Page 7: 2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

Segmental Review – BC Sales Coffee & cereals remained major revenue contributors for BC segment

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Branded Consumer Segment Sales down by 4% to S$80.0m Coffee remained the major

revenue contributor at 79%, followed by Cereals at 8%

BRANDING and PRODUCT

INNOVATION will remain the focus for growth

Sales by Product Category (S$m)

Page 8: 2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

Segmental Review – BC Sales Improved performance from anchor markets such as Thailand, Myanmar and China

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Sales by Geographical Area (S$m) Southeast Asia 2Q15 revenue dipped 4% YoY

―Dragged by Philippines (streamlining of product portfolio)

―Mitigated by stronger performance in Thailand and Myanmar

East Asia Sales in 2Q15 dipped 3% despite better

performance in China Others 2Q15 sales decreased by 11% due mainly

to weaker sales in Eastern Europe

Page 9: 2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

Segmental Review – FI Sales Non-diary creamer and soluble coffee powder are major revenue contributors

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Food Ingredients Segment Sales dipped 5% to S$45.5m

SCP contributed 50% to sales

revenue, followed by NDC at 49% Roll out more premium products,

and value-add existing products to drive growth

- Nutritional Oil Powders - Botanical Herbal Extracts

Sales by Product Category (S$m)

Page 10: 2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

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Southeast Asia Sales in 2Q15 dipped 4% YoY

mainly due to weaker sales from the Philippines market despite stronger performance by Indonesia

East Asia Revenue fell 8% YoY due to lower

sales recorded in the China market

Others Sales jumped 114%

Segmental Review – FI Sales Improved contribution from Indonesia

Sales by Geographical Area (S$m)

Page 11: 2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

Balance Sheet Highlights Strong cash position

Inventories decreased due to lower raw material balances

Trade and other receivables increased due to higher import tax receivables and advance payments made

Cash and cash equivalents increased to S$103.4m

Trade and other payables decreased due to settlement of trade debts and payment of accrued expenses

Bank loans were used to finance working capital

NAV per share stood at 44.90 cents

D/E ratio of 0.21 times; low gearing

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In S$’000 Jun 15 Dec 14

Non-Current Assets Property, plant and equipment

290,209 276,001

287,194 276,274

Current Assets Inventories Trade and other receivables Cash and cash equivalents

335,864 107,759 121,008 103,388

343,927 115,059 118,237 101,336

Current Liabilities Trade and other payables Bank loan

100,952 57,823 33,000

107,307 79,466 20,000

In S$’000 Jun 15 Dec 14

Non-Current Liabilities Deferred tax liabilities

6,434 6,349

6,788 6,746

Equity attributable to owners of the Company

500,698 497,562

Ratios NAV per share (cents) Debt-to-equity ratio (times)* Current ratio (times) Trade Receivables turnover (mths) Inventory turnover (mths) Trade Payables turnover (mths)

44.90 0.21 3.33 2.35 4.29 1.07

44.62 0.22 3.21 2.16 3.81 1.20

*: Computed based on Total Liabilities divided by Total Equity.

Page 12: 2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

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Appendix

Page 13: 2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

Profit & Loss Highlights

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Financial Highlights

(S$’000)

2Q15 2Q14 %

Change

1H15 1H14 %

Change

Revenue 125,531 131,674 (5) 247,200 256,302 (4)

Gross Profit 44,573 46,917 (5) 88,512 93,657 (5)

Gross Profit Margin (%) 36 36 NM 36 37 (1)^

Total Operating Expenses (29,083) (29,408) (1) (56,634) (56,202) 1

Profit from Operating Activities 15,490 17,509 (12) 31,878 37,455 (15)

Profit from Operating Activities (%) 12 13 (1)^ 13 15 (2)^

Net Other Income 375 202 86 1,046 699 50

Net Finance (Cost)/Income (464) 75 (719) 964 689 40

Net Profit 11,067 15,647 (29) 25,638 34,284 (25)

Net Profit Margin (%) 9 12 (3)^ 10 13 (3)^

EBITDA 20,590 21,498 (4) 45,017 45,880 (2)

EBITDA Margin (%) 16.4 16.3 0.1^ 18.2 17.9 0.3^

Earnings per share (cents) 0.94 1.35 (30) 2.16 2.95 (27)

^ Denote percentage points. NM: Not meaningful

Page 14: 2 Quarter & 1st Half 2015 · S$15.5m Net Profit (after tax ) Higher effective tax rate of 28% (2Q14: 12%) –Expiry of an overseas subsidiary’s tax incentive in July 2014 –Withholding

For Investor Relations, please contact:

Candy Chng Group Corporate Affairs & Investor Relations

[email protected]

Tel: (65) 6753 3088

www.supergroupltd.com

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