Slide 1: Del Monte Pacific Limited First Quarter 2012 Results
Del Monte Pacific Limited First Quarter 2012 Results 30 April 2012 1
Slide 2: Disclaimer
Disclaimer 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 assumptions. Representative examples of these f
Slide 3: Contents
Contents Executive Summary 1Q 2012 Results Market Updates Credit Standing Outlook 3
Slide 4: Executive Summary
Executive Summary DEL MONTE PACIFIC POSTS RECORD FIRST QUARTER REVENUE AND OPERATING PROFIT • Highest recorded sales for a first quarter of US$75m • Sales of S&W branded business increased 47% • First quarter net profit registered a threefold increase to US$4.4m 4
Slide 5: First Quarter 2012
First Quarter 2012 1Q 1Q Chg In US$m Comments 2011 2012 (%) Higher sales due to S&W branded Turnover 69.3 74.7 +7.8 business and the Philippine market Higher volume, better sales mix and Gross profit 15.2 17.6 +16.3 active cost management Higher margins and lower operating Operating profit 4.3 8.6 +
Slide 6: 1Q Turnover Analysis
1Q Turnover Analysis Others 32% Asia Pacific 55% E&NA 13% Asia +2.2% • Strong sales of canned 100% Pacific pineapple juices in the Philippines E&NA -13.6% • Lower demand of fruits in can, plastic cup and aseptic bag in the USA Others +34.3% • Strong 47% sales growth of the S&W branded business, both
Slide 7: Philippine Market 1Q 2012 Updates
T Philippine Market 1Q 2012 Updates • 1Q Philippine sales of canned juices, processed fruits and culinary products were all up • Del Monte 100% Pineapple Juice Heart Smart’s strong cholesterol-reduction positioning further strengthened the line’s push for consumption as a daily maintenance beverage
Slide 8: S&W 1Q 2012 Updates
T S&W 1Q 2012 Updates Penetrated new markets of Japan for fresh product and Middle East for processed product
Slide 9: India 1Q 2012 Updates
T India 1Q 2012 Updates • Sales of the Del Monte-branded business in India grew 7% with improvement in contribution margins • Closure of fresh domestic business • Lower equity loss of US$1.7 million from US$2.2 million
Slide 10: 1Q Margins
1Q Margins Gross margin Better sales mix High pineapple yield Favourable raw material costs Production efficiencies Operating margin Higher gross profit % Lower operating Margin expenses Net margin Higher operating profit Lower equity loss in Indian affiliate 1Q11 1Q12 10
Slide 11: 1Q Cash Flow Variance Analysis
1Q Cash Flow Variance Analysis Working 4Q11 Operations Cap Tax Capex Dividend Others 1Q12 -US$89.1m -US$120.2m Net Debt Net Debt +11.5m -25.0m -0.7m -1.6m -15.6m +0.3m
Slide 12: Credit Standing
Credit Standing Loan utilisation: only 45% of bank credit lines Loan Mix: 47% Peso and 53% US$ to optimise natural hedge 81% Short term and 19% Long term Gearing and Coverage Ratios Net debt equity ratio = 53% Interest cover = 15x 12
Slide 13: Operation Updates
Operation Updates Improvement in pineapple operations 1Q 2012 (YoY chg) Yield +6% Supply +9% Process Rate +6% 13
Slide 14: Outlook
Outlook • The combination of revenue expansion and active cost management led to record sales and operating profit in the first quarter. • The Group’s branded business in the Philippines through the Del Monte brand and in Asia Pacific through the S&W brand continued to generate higher returns. • How