Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Shareholder Meeting (August 2024)
32 slides from Del Monte Pacific's shareholder meeting presentation, Aug 30, 2024
Slide 1: Del Monte Pacific Ltd. Annual General Meeting
DEL MONTE PACIFIC LTD. Annual General Meeting 30 August 2024 Singapore Copyright 2009 Del Monte Foods. All rights reserved. 1
Slide 2: Del Monte Philippines, Inc. (DMPI): Philippines and International Markets
DEL MONTE PHILIPPINES, INC. (DMPI) Philippines and International Markets
Slide 3: DMPI Executive Summary
DMPI Executive Summary FY2024 was not a good year, but we know what to fix to restore solid performance in FY2025. 1) Total revenue of Php 38.7B, -5.6% vs year ago. • Philippine Market flat, due to -5.6% lower sales to distributor segment (50% of business). • International behind -9.4%, with lower p
Slide 4: Philippines – Market Share Leadership
Philippines – Market Share Leadership market shares holding or even increasing. Category consumption growing. -1.2pts +3.8pts +1.1pts Packaged Pineapple (#1) Canned Mixed Fruit (#1) RTD Juices ex foil pouches (#1) Category Growth: Category Growth: Category Growth: Past 3 mos.: +13.3% Past 3 mos.: +1
Slide 5: International – Fresh Market Share
International – Fresh Market Share Market shares continue to improve. Fresh North Asia Market Share 0.80 0.70 China, 68% 0.60 55% Korea, 49% 0.50 38% North Asia, 48% 0.40 0.30 32% Japan, 20% 0.20 19% 0.10 0.00 FY'21 2020 FY'22 2021 FY'23 2022 FY'24 2023 UpFY'25 Latest to June 2024 Source: CY2021 – 2
Slide 6: DMPI FY2024 Results Highlights
DMPI FY2024 Results Highlights In PHP million FY2024 FY2023 Chg (%) Comments Lower sales of packaged pineapple in the Sales 38,749 41,068 -5.6% US/DMFI, and misses in Philippine Market Distributor Operations Due to higher cost of C74 pineapple Cost of Goods 29,587 30,652 -3.5% from lower productivit
Slide 7: Plantation Rehabilitation Task Force – What Went Wrong
Plantation Rehabilitation Task Force – What Went Wrong Tons-per-hectare productivity in C74 fruit variety dropped to all-time low due to: • Weather impact from 2022 rainfall • Operations lapses in field management Annual Annual Rain C74 Historical Tons-per-Hectare Season Year Rainfall (mm) (days) TO
Slide 8: Plantation Rehabilitation Task Force – Pillars to Recovery
Plantation Rehabilitation Task Force – Pillars to Recovery 1 Climate-resilient Farming 2 Back-to-basic Principles 168 5 Innovation tons-per-hectare in FY28 3 Agri-Research 4 Supervisor Mentorship and Training 8
Slide 9: Plantation Rehabilitation Task Force - Correction of Lapses and New Directions
Plantation Rehabilitation Task Force - Correction of Lapses and New Directions 1 PLANTATION OPERATIONS SUPPORT 1) New Plantation Director, Luis Matamoros (Costa Rican) effective April 1, 2024 2) Strengthened decision-making via analytics, drone, AI and digitalization 3) Resilient Research Program to
Slide 10: Distributors Improvement Plans
Distributors Improvement Plans KEY INTERVENTIONS: North Luzon 1) Assigned a new Sales Head effective Central Luzon April 1, 2024. (New Area) 2) Increased distributors from Greater Manila South Luzon 1 21 to 23, all operative starting July 1, 2024. Also replaced South Luzon 2 3 erring distributors. (
Slide 11: DMPI Summary
DMPI Summary 1 DMPI Team commits to turn around its performance this FY2025. 2 Fix two areas that impacted our revenue performance: • Philippine Market distributor operations (50% of domestic revenue) • International, packaged pineapple exports with better supply 3 Restore productivity and thus, low
Slide 12: Del Monte Foods, Inc. (DMFI) USA
DEL MONTE FOODS, INC. (DMFI) USA
Slide 13: DMFI Performance Summary
DMFI Performance Summary FY2024 Results: Well Below Expectations External Influences Inflationary Pressures Weakened Consumer Demand across Most Food Categories Increased Competition from Private Label Internal Factors Plant Level Cost Control and Utilization Challenges Plant Operations an
Slide 14: DMFI FY2024 Results Highlights
DMFI FY2024 Results Highlights In US$ million FY2024 FY2023 Chg (%) Comments Pricing actions in FY2023 and FY2024, incremental volume from foodservice and Sales 1,737 1,733 +0.6% e-commerce, and higher broth and stock sales from College Inn and Kitchen Basics, and higher Joyba bubble tea sales Highe
Slide 15: DMFI Performance Plans: Plans for Recovery: 3 Year Strategic Plan
DMFI Performance Plans Plans for Recovery: 3 Year Strategic Plan Built with Immediate Action and Oversight of Management and Board Transforming Del Monte in a Streamlined, Asset Light and Agile Organization Increasing Supply Chain Efficiency and Utilization to Lower Cost and Complexity Improving
Slide 16: DMFI Performance Plans: Plans for Recovery: 3 Year Strategic Plan
DMFI Performance Plans Plans for Recovery: 3 Year Strategic Plan Built with Immediate Action and Oversight by Management and Board YEAR 2 - FY2025: Executing Margin Improvement and Operational Efficiency Enhancing Gross Margins via Pricing Strategies, Trade Efficiency, and SKU Rationalization Re
Slide 17: Cost Reduction and Profit Improvement Actions
Cost Reduction and Profit Improvement Actions US$7-8m US$9-10m US$11-12m US$10-11m Annual Savings Annual Savings Annual Profits Annual Profits Net Workforce Vegetable Plant FY2025 Strategic Price FY2025 Strategic Trade Reduction Consolidations Increases Reduction Completed in April Completed in Apri
Slide 18: Inventory Reduction Plans are Working
Inventory Reduction Plans are Working Goal to Reduce US$100m in Inventory and Free Up Working Capital in 2025 YEAR OVER YEAR INVENTORY LEVELS 70,000 63,379 63,036 58,167 55,340 60,000 54,388 51,205 44,421 47,179 50,000 39,940 42,725 39,691 38,776 40,000 30,000 59,606 50,736 54,464 48,144 20,000 38,7
Slide 19: Supply Chain Improvements – FY2025
Supply Chain Improvements – FY2025 19
Slide 20: Category Sales Have Stabilized in FY2025
Category Sales Have Stabilized in FY2025 Monthly view of Del Monte Foods U.S. Category Volume Trends Category Declines Stability 2.3% 0.1% Vegetables -5.7% -5.5% -13.3% -3.1% -0.5% -9.4% -9.4% -8.6% -7.9% -8.0% -9.8% -7.9% -5.2% -4.5% -6.2% -1.8% -7.4% -3.1% -2.4% -3.1% -1.4% -2.4% 3.2% 7.6% 0.8% To
Slide 21: USA Market Shares
USA Market Shares Del Monte will continue to bring differentiated and innovative products to market, expand distribution channels, and build its brands Canned Vegetable (#1) Canned Fruit (#2) Fruit Cup Snacks (#2) Category Growth: -2.5% Category Growth: -3.5% Category Growth: -9.9% Broth & Stock (#2
Slide 22: Del Monte Vegetable Momentum Continues
Del Monte Vegetable Momentum Continues Branded Vegetables Quarterly EQ Share Trends 2021 – 2024 30.0 25.0 25.5 24.8 24.4 24.2 24.6 23.7 24.6 25.0 23.4 23.6 23.6 23.7 21.9 20.5 19.8 ~25% share 20.0 16.7 14.6 15.0 ~15% share 10.0 5.5 5.8 5.4 5.1 4.7 4.5 4.1 4.3 4.1 4.3 4.2 4.3 4.4 4.5 4.9 5.0 3.7 3.9
Slide 23: New Product Platforms Driving Growth
New Product Platforms Driving Growth 23
Slide 24: Growing Number of Stores and Channels Selling Del Monte Products Each Year
Growing Number of Stores and Channels Selling Del Monte Products Each Year 2020 2021 2022 2023 64,857 82,464 93,416 93,891 # of Stores Selling # of Stores Selling # of Stores Selling # of Stores Selling Doubled Amazon business, Sam’s business is 2x Expanded Costco Started a partnership started partn
Slide 25: DMFI Summary Key Areas of Focus FY25-FY26
DMFI Summary Key Areas of Focus FY25-FY26 Our efforts will drive improved EBITDA and lower leverage in FY2025 and lead to significant improvements in FY2026 business performance 1 Lowering Inventory Levels and Reducing Debt and Leverage 2 Executing Pricing and Trade Reduction Actions to Improve Gros
Slide 26: Del Monte Pacific Ltd (DMPL) Group
DEL MONTE PACIFIC LTD (DMPL) GROUP
Slide 27: DMPL Group FY2024 Highlights
DMPL Group FY2024 Highlights Revenues (US$bn) DMPL Group sales were maintained at 2.34 2.42 2.43 US$2.4bn on stable turnover in USA and the Philippines FY2022 FY2023 FY2024 Market leadership maintained in nearly all core categories in the U.S. and Philippines, EBITDA EBITDA margin (%) and for fresh
Slide 28: DMPL Gross Profit and Margin Bridge
DMPL Gross Profit and Margin Bridge DMPL ex-DMFI DMPL ex-DMFI Gross Margin DMPL ex-DMFI DMPL ex-DMFI 28
Slide 29: DMPL Balance Sheet
DMPL Balance Sheet Group Amounts in US$’000 April 2024 April 2023 Index (Audited) (Audited) Trade and other receivables 218,154 231,036 94 Inventories 1,043,843 1,076,772 97 Fixed assets 761,612 759,557 100 Intangible assets and goodwill 746,807 753,841 99 Deferred tax assets 146,705 118,060 124 Oth
Slide 30: DMPL Inventory
DMPL Inventory Inventory (In US$m) 1,077 - 39 1,044 22 53 -5 133 - 41 88 222 686 12 135 100 DMFI Inc Dec 944 956 DMPI Inc Dec 586 FY22 Rate Volume FY23 Rate FX Volume FY24 DMFI DMPI FY2023 vs FY2022 FY2024 vs FY2023 In FY2023, inventories increased by 57% to US$391m, In FY2024, inventories decreased
Slide 31: DMPL Cash Flow
DMPL Cash Flow Group Huge improvement in Amounts in US$’000 April 2024 April 2023 operating cash clow in Index (Audited) (Audited) FY2024, despite generating lower EBITDA 130,521 329,674 40 Other Adjustments: EBITDA, driven by Depreciation of Bearer Plants 118,677 113,571 104 better working capita
Slide 32: DMPL Outlook
DMPL Outlook In FY2025, the Group’s main priorities will be as follows: 1) Plans are underway for the selective sale of assets and injection of equity through strategic partnerships. The Group intends to utilize the proceeds from these transactions to lower leverage. 2) A task force has been formed
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