Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Q1 2010 Earnings Presentation
19 slides from Del Monte Pacific's earnings presentation, Apr 28, 2010
Slide 1: Del Monte Pacific Limited First Quarter 2010 Results
Del Monte Pacific Limited First Quarter 2010 Results 28 April 2010 1
Slide 2: Cautionary Note on Forward-looking Statements
Cautionary Note on Forward- Forward-looking Statements This presentation may contain statements regarding the business of Del Monte Pacific Limited and its subsidiaries (the “Group”) that are of a forward looking nature and are therefore based on management’s assumptions about future developments. S
Slide 3: Contents
Contents Executive Summary 1Q 2010 Results Balance Sheet Business Updates Outlook 3
Slide 4: Executive Summary
Executive Summary • Sales grew 9% due to fresh and processed pineapple exports and S&W sales • Net loss position due to higher costs for raw materials, advertising & promotion and selling expenses • Implementing new measures to lower product costs and operating expenses • Second half expected to ret
Slide 5: First Quarter 2010
First Quarter 2010 1Q 1Q In US$m Chg (%) Comments 2010 2009 Higher fresh and processed pineapple Turnover 65.9 60.4 +9.2 exports and higher S&W sales Higher raw materials costs, primarily Gross profit 10.8 15.5 -30.3 pineapple and sugar, as well as fixed costs Gross margin (%) 16.4 25.8 -9.4ppt Same
Slide 6: 1Q Turnover Analysis
1Q Turnover Analysis By Market Asia Pac +1.9% • Strong sales of culinary products in the Philippines led Others by the new “Sandosenang 14% Sarap” seasoning mix, which offset lower sales of processed fruits in both the Philippines E&NA and other Asia Pacific markets. • Higher beverage sales to other
Slide 7: 1Q Cash Flow Variance Analysis (YoY)
1Q Cash Flow Variance Analysis (YoY YoY)) Additional 1Q09 Operations Working Tax Capex investment Dividend Interest 1Q10 cap FieldFresh & others -US$108.1m Net Debt -US$77.3m -4.7m Net Debt -14.0m -15.9m -8.5m -4.5m +50.5m +27.9m
Slide 8: 1Q Cash Flow Variance Analysis (QoQ)
1Q Cash Flow Variance Analysis (QoQ QoQ)) Additional 4Q09 Operations Working Tax Capex investment Dividend Interest 1Q10 cap FieldFresh & others -US$36.1m Net Debt -US$77.3m Net Debt +3.0m -33.6m -0.5m -1.3m -5.6m -1.7m -1.5m
Slide 9: Balance Sheet
Balance Sheet 9
Slide 10: Working Capital Management
Working Capital Management No. of 1Q 1Q Chg Comment days 2009 2010 Actively managed inventory levels for Inventory 188 112 (76) various inputs; stricter implementation of inventory policies Discounting of Receivable 83 24 (59) receivables and timing of collection Will continue to manage Payable 99 7
Slide 11: Credit Standing
Credit Standing As of 31 March 2010 Credit utilisation: 41% of bank credit lines Loan Mix: 31% Peso and 69% US$ to optimise natural hedge 69% Short term and 31% Long term Gearing and Coverage Ratios Net debt equity ratio = 39% Interest cover = 2.6x Debt cover = 3.4x 11
Slide 12: Business Updates
Business Updates 12
Slide 13: Philippines
Philippines 1Q 2010 sales slightly up by 2% Beverage sales were flat as declines in Del Monte Fit ‘n Right juice drink in PET were offset by gains in the other juices Growth in processed pineapple and culinary products Strong sales of culinary products led by the new “Sandosenang Sarap” seasoning mi
Slide 14: S&W in Asia
S&W in Asia Sales in US$m 1Q 2009 1Q 2010 % Change Comments S&W Processed 1.4 2.0 40% Strong sales in Singapore, Malaysia and HK S&W Fresh 0.5 1.5 222% Better supply S&W Brand 1.9 3.5 84% • In Singapore, there were increased listings and better presence in major retailer chain stores • In Hong Kong,
Slide 15: FieldFresh in India
FieldFresh in India Generated sales of US$6.5m in 1Q 2010, up more than 200%. Strong growth in the 3 business segments: Fresh Export – New Learning and sourcing from Maharashtra vs year ago when sourcing was from Agra. Export of Baby Corn hit 241 MT in 1Q 2010 up from only 54 MT in 1Q 2009 Fresh Dom
Slide 16: New Product launch in India
New Product launch in India • Del Monte Zingo and Tango offer two twists on ketchup suited to favourite Indian and Asian snacks such as samosas, pakoras and kebabs. Zingo combines red chillies, red bell pepper, garlic and ginger, while Twango is a blend of pineapple and tomato • Complemented by a ca
Slide 17: Outlook
Outlook 17
Slide 18: Outlook
Outlook • Robust measures being taken to deal with the higher costs and, while first half 2010 profits will be lower compared to that of the same period last year, we expect improvement in the second half performance. • To mitigate high sugar costs, the Company is increasing usage of natural sugar r
Slide 19: 1M EE tao,
1M EE tao,