Slide 1: Del Monte Pacific Limited First Quarter 2011 Results
Del Monte Pacific Limited First Quarter 2011 Results 29 April 2011 1
Slide 2: Cautionary Note on Forward-looking Statements
Cautionary Note on Forward- Forward-looking Statements This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future results may differ materially from those expressed in forward- looking statements as a result of a number of risks, uncertainties and as
Slide 3: Contents
Contents Executive Summary 1Q 2011 Results Credit Standing Outlook 3
Slide 4: Executive Summary
Executive Summary 4
Slide 5: Executive Summary
Executive Summary DEL MONTE PACIFIC CONTINUES GROWTH First quarter sales grew by 5% on higher exports and S&W branded sales Export sales rose 25% driven by a better sales mix in European markets and higher volume and favourable prices of industrial products sold to the US S&W branded business increa
Slide 6: First Quarter 2011
First Quarter 2011 1Q 1Q In US$m Chg (%) Comments 2010 2011 Higher exports and S&W branded Turnover 65.9 69.3 +5.2 sales Gross profit 10.8 15.2 +40.0 Better sales mix and cost control Higher gross profit and lower A&P Operating profit 0.8 4.3 +457.8 spend Finance inc/(exp) (0.9) (0.6) -32.2 Lower le
Slide 7: 1Q Turnover Analysis
1Q Turnover Analysis By Market Asia -2.6% • Lower Philippine sales as a result Pacific of decreased PET beverage sales, product SKU and distributor Others rationalisation. PET beverage sales were affected by competition 15% while certain product SKU’s Asia experienced variable demand. Pacific E&NA +
Slide 8: 1Q Margins
1Q Margins Gross margin Better sales mix and tighter cost control. The Group had lower pineapple, tomato paste and PET beverage costs. Higher pineapple yields and production efficiencies, including energy efficiency, contributed to overall cost % management Margin Operating margin Higher gross margi
Slide 9: 1Q Cash Flow Variance Analysis (YoY)
1Q Cash Flow Variance Analysis (YoY YoY)) Additional Investment Proceeds Working in from Interest & 1Q10 Operations Cap Tax Capex FieldFresh Dividend Borrowings Others 1Q11 -US$77.3m Net Debt -US$94.2m Net Debt -US$88.6m -33.6m Net Debt -5.0m -14.6m +54.1m -5.5m -11.9m +13.3m -13.7m
Slide 10: Credit Standing
Credit Standing Loan utilisation: only 40% of bank credit lines Loan Mix: 57% Peso and 43% US$ to optimise natural hedge 82% Short term and 18% Long term Gearing and Coverage Ratios Net debt equity ratio = 44% Interest cover = 7x 10
Slide 11: Operation Updates
Operation Updates Improvement in pineapple operations in 1Q 2011 vs 1Q 2010 : • Supply increased by 19% • Yield increased by 2% • Cost per ton decreased by 7% • Cannery recovery improved by 3% 11
Slide 12: Outlook
Outlook Our strategy in the export markets, particularly in Europe, and the market penetration we are achieving with the S&W branded business in Asia are sustaining the growth momentum that was achieved in 3Q2010 Exports, particularly those to Europe, which had been underperforming previously, now c
Slide 13: Thank You
Thank You 13