Del Monte Pacific

[cyclone]

Del Monte Pacific’s Second Quarter FY2020 Results

Highlights :
* Positive outcomes backed by strong sales growth in fresh pineapple in North Asia, increased sales in the Philippine market, and transformational initiatives at US subsidiary
* Maintaining solid market share across legacy categories, while expanding into other new growth categories and channels
* Gross profit, gross margin, recurring EBITDA and net profit recorded significant improvement
* Without one-off expenses, operating profit increased by 65% to US$47.2m while net profit more than doubled to US$15.9m
* Planned one-offs, mainly non-cash, attributed to US plant closures/sale in line with assetlight strategy, led to a net loss of US$37.4m, with expected immediate and ongoing savings of US$50-60m over the next 24 months.

More details in :
1. https://links.sgx.com/FileOpen/2__DMPL_2...eID=589669
2. https://links.sgx.com/FileOpen/1__DMPL_2...eID=589668
3. https://links.sgx.com/FileOpen/3__DMPL_2...eID=589670

DMPL today closed at S$0.14 (+0.001), up 0.75%

[karlmarx]

Liquidity has returned to financial markets, but recent issues show that the cost for borrowers with weaker balance sheets or unattractive businesses are much clearly higher than before the pandemic.

https://links.sgx.com/FileOpen/DMPL%20-%...eID=611226

So DMPL has a large share of the US and Philippines canned fruit and vegetables market, and is an old and familiar brand name to consumers. But changing consumer preferences mean that selling prices have to be constantly low(er) for its value proposition to be attractive to consumers. Yet, the heavy debt burden and high(er) financing costs has been setting back whatever thin margins the business is making. In the years to come, DMPL may be in a worse financial position if these trends do not reverse.

If that is the case, the pricing of its recently refinanced debt may not be too high after all.

[¯|_(ツ)_/¯]

eAGM 17 Sep 2020@10:30am
(click to reg b4 14/9/2020)
https://links.sgx.com/FileOpen/1.%20Anno...eID=629649

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

Response to shareholders questions
There are really passionate shareholders who asked very good questions.
Worth a read and learn something new about Del Monte.

FY2020 Interest rate   7.6%
FY2021F Interest rate 11.1%

NP 2.3%

Our business has been favourably impacted by the pandemic as consumers turn to trusted brands, shelf-stable and culinary products suited for home cooking. Our sales in the USA surged 62% in the fourth quarter of FY2020, while Philippines improved by 14.5%.
https://links.sgx.com/FileOpen/Response%...eID=632051
(eAGM materials)

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

Del Monte Pacific Limited will announce the Group's 1Q FY2021 (May - July 2020) results this Wednesday, 23 September 2020, after market closes.
https://links.sgx.com/1.0.0/corporate-an...5937d8b81c

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

Del Monte @ 42

FY2021 Result as at 30 Apr 2021
Rev USD2b  (vs 2b)
GP  USD555m (vs 452m)
NP  USD 63m (vs -81m)
Div USD0.012 (vs 0.0154)

The Group has been exploring e-commerce opportunities for its range of products across markets.
Barring unforeseen circumstances, the Group expects to generate higher net profit in FY2022 building on the momentum in FY2021.
https://links.sgx.com/FileOpen/DMPL_4QFY...eID=672083


Stay home and stay safe, everyone.