Uni-President Enterprises (1216) Q1 2024 earnings summary

Executive summary

• Q1 2024 consolidated revenue rose 20.82% year-over-year to NTD 158,756 million, with gross profit up 21.16% and operating profit up 28.05%.

• Profit after tax attributable to owners increased 10.7% year-over-year to NTD 5,534 million, and EPS reached NTD 0.97, up from NTD 0.88.

• Segment revenue growth was led by CVS & Other Retail (up 5%) and Container & Packing (up 38%).

• Segment income saw significant growth in Container & Packing (up 100%) and F&B and Feeds (up 16%).

• Growth was broad-based across convenience stores, food, and distribution, supported by robust cash flow and continued expansion.

Financial highlights

• Gross margin improved to 33% from 32% in Q1 2023, and operating margin rose to 5.5% (up from 5.2%).

• Pretax margin declined to 6.84% (down 1.01 ppt) year-over-year.

• Cash and cash equivalents stood at NTD 97,239 million as of March 31, 2024.

• Total assets increased to NTD 674,820 million, with equity attributable to owners at NTD 134,000 million.

• Net cash flows from operating activities were NTD 8,868 million in Q1 2024, up from NTD 2,971 million in Q1 2023.

Outlook and guidance

• Management expects continued growth in core business segments, supported by ongoing investments and expansion in convenience stores, food, and distribution.

• The company has proposed a final dividend for FY2023, subject to shareholder approval, with a distribution of NT$3 per share.

• Maintains a stable dividend policy, distributing dividends for 41 consecutive years.