Slide 1: Third Quarter and Nine Months 2011 Results
Del Monte Pacific Limited Third Quarter and Nine Months 2011 Results 8 November 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 3Q 2011 Results 9M 2011 Results Credit Standing Outlook 3
Slide 4: Executive Summary
Executive Summary DEL MONTE PACIFIC REPORTS STRONG RESULTS FOR 3Q 2011 SALES UP 19% AND OPERATING PROFIT DOUBLES • 3Q sales increased 19% to US$105.3m from US$88.4m in prior year quarter • 3Q operating profit doubled to US$11.6m from US$5.8m • Gross margin increased to 24.2% from 21.4% on better sal
Slide 5: 3Q 2011 Results
3Q 2011 Results
Slide 6: Third Quarter 2011
Third Quarter 2011 3Q 3Q In US$m Chg (%) Comments 2010 2011 o Higher export sales Turnover 88.4 105.3 +19.1 o Higher sales S&W fresh and processed Higher volume, pricing and better Gross profit 18.9 25.5 +34.9 sales mix Operating profit 5.8 11.6 +98.9 Higher gross profit, lower A&P spend Finance inc
Slide 7: 3Q Turnover Analysis
3Q Turnover Analysis By Market Asia +7.2% • Strong export sales to the Asia Pacific Pacific markets • Sales in the Philippines grew 4% with improved performance across all major product categories. Processed fruit, canned juice and culinary categories registered double digit growth. E&NA +37.2% • Hi
Slide 8: 3Q 2011 Margins
3Q 2011 Margins Gross margin Higher volume; better pricing % Better sales mix Margin Operating margin Higher gross profit Lower A&P spend Net margin Higher operating profit 3Q10 3Q11 8
Slide 9: 3Q 2011 Cash Flow Variance Analysis
3Q 2011 Cash Flow Variance Analysis Acquisition Proceeds Working of Treasury from Interest & 2Q11 Operations Cap Tax Capex Shares Dividend Borrowings Others 3Q11 -US$95.1m - Net Debt -US$107.0m Net Debt -US$88.6m Net Debt +15.6m -14.1m -1.7m -3.8m -1.8m -4.9m +4.9m -6.1m
Slide 10: 9M 2011 Results
9M 2011 Results
Slide 11: Nine Months 2011
Nine Months 2011 9M 9M In US$m Chg (%) Comments 2010 2011 o Higher export sales Turnover 239.4 271.1 +13.2 o Higher S&W fresh and processed sales Higher volume, pricing and better Gross profit 46.3 63.5 +37.3 sales mix Higher gross profit, lower A&P Operating profit 9.1 25.8 +182.8 spend Finance inc
Slide 12: 9M Turnover Analysis
9M Turnover Analysis By Market Asia Pac +2.6% • Strong export sales offset by weak performance of drinks in PET in the Philippines E&NA +37.1% • Higher sales in Europe due to higher volume and pricing. Selling prices and margins in Europe also improved as the Group sold directly into that market fol
Slide 13: 9M Margins
9M Margins Gross margin Higher export sales; better pricing % Better sales mix Margin Operating margin Higher gross profit Lower A&P spend Net margin Higher operating profit 9M10 9M11 13
Slide 14: Credit Standing
Credit Standing Loan utilisation: only 51% of bank credit lines Loan Mix: 45% Peso and 55% US$ to optimise natural hedge 85% Short term and 15% Long term Gearing and Coverage Ratios Net debt equity ratio = 49% Interest cover = 13x 14
Slide 15: Operation Updates
Operation Updates Improvement in pineapple and cannery operations 3Q 2011 (YoY chg) 9M 2011 (YoY chg) Yield +6% +5% Supply +22% +13% Cannery recovery +8% +7% 15
Slide 16: Outlook
Outlook • The international business is now a major profit driver, primarily driven by a new higher-margin business in Europe, and the S&W brand is also beginning to make a meaningful contribution. • While the Indian business continues to grow and generate strong volume and sales increases, the Grou
Slide 17: Thank You
Thank You 17