Slide 1: Second Quarter and First Half 2011 Results
Del Monte Pacific Limited Second Quarter and First Half 2011 Results 11 August 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 2Q 2011 Results 1H 2011 Results Credit Standing Dividend Outlook 3
Slide 4: Executive Summary
Executive Summary DEL MONTE PACIFIC MAINTAINS GROWTH IN 2Q 2011 SALES UP 13% WHILE OPERATING PROFIT GREW FOURFOLD • 2Q operating profit increased fourfold to US$9.8m from US$2.5m • Gross margin increased to 23.7% from 19.4% on better sales mix and lower costs • Exports to North America, Europe and A
Slide 5: 2Q 2011 Results
2Q 2011 Results
Slide 6: Second Quarter 2011
Second Quarter 2011 2Q 2Q In US$m Chg (%) Comments 2010 2011 o Higher export sales Turnover 85.1 96.5 +13.3 o Higher S&W processed sales due to better pricing & higher volume Gross profit 16.5 22.9 +38.3 Higher volume, pricing and sales mix Higher gross profit, lower costs, lower Operating profit 2.
Slide 7: 2Q Turnover Analysis
2Q Turnover Analysis By Market Asia +1.9% • Strong export sales offset by flat Pacific Philippine sales. 2Q Philippine sales were flat as higher sales of canned Others fruits and juices were offset by 15% decreased PET beverage sales. Canned 100% pineapple juices Asia delivered strong double-digit g
Slide 8: 2Q 2011 Margins
2Q 2011 Margins Gross margin Higher export sales; better pricing % Better sales mix Margin Lower costs Operating margin Higher gross profit Lower A&P spend Net margin Higher operating profit 2Q10 2Q11 8
Slide 9: 2Q 2011 Cash Flow Variance Analysis
2Q 2011 Cash Flow Variance Analysis Additional Investment Proceeds Working in from Interest & 2Q10 Operations Cap Tax Capex FieldFresh Dividend Borrowings Others 2Q11 -US$89.6m -US$95.1m Net Debt Net Debt -US$88.6m Net Debt -26.5m -6.8m -15.5m -4.4m +60.0m -11.9m +3.1m -3.5m
Slide 10: 1H 2011 Results
1H 2011 Results
Slide 11: First Half 2011
First Half 2011 1H 1H In US$m Chg (%) Comments 2010 2011 o Higher export sales Turnover 151.0 165.8 +9.8 o Higher S&W processed sales due to better pricing & higher volume Higher volume, pricing and sales Gross profit 27.4 38.1 +39.0 mix Higher gross profit, lower costs, Operating profit 3.3 14.2 +3
Slide 12: 1H Turnover Analysis
1H Turnover Analysis By Market Asia Pac 0.0% • Strong export sales offset by weak performance of PET beverages in Philippines Others 15% E&NA +37.1% • Higher sales in Europe due to higher volume and pricing. Asia Selling prices and margins in Pacific Europe also improved as the 59% E&NA Group sold d
Slide 13: 1H Margins
1H Margins Gross margin Higher export sales; better pricing % Better sales mix Margin Lower costs Operating margin Higher gross profit Lower A&P spend Net margin Higher operating profit 1H10 1H11 13
Slide 14: Credit Standing
Credit Standing Loan utilisation: only 36% of bank credit lines Loan Mix: 51% Peso and 49% US$ to optimise natural hedge 80% Short term and 20% Long term Gearing and Coverage Ratios Net debt equity ratio = 43% Interest cover = 10.1x 14
Slide 15: Dividend
Dividend Dividend Book Closure Payment Date Dividend/ Payout Ratio Date Share Interim 29 Aug 2011 7 Sept 2011 US$0.0046 75 % of 1H 2011 (tax not net profit applicable) No dividends were declared in the same period last year due to the net loss position in 1H 2010 15
Slide 16: Operation Updates
Operation Updates Improvement in pineapple and cannery operations 2Q 2011 (YoY chg) 1H 2011 (YoY chg) Yield +2% +2% Supply -4% (due to timing) +7% Cost per ton -1% -4% Cannery recovery +11% +7% 16
Slide 17: Outlook
Outlook • The overall international business now contributes significantly to Group profitability and the Group is working towards making all of its international markets to be meaningful profit drivers in the future. • The branded business in the Philippines saw some good results and the Group expe