Slide 1: Third Quarter and Nine Months 2012 Results
Del Monte Pacific Limited Third Quarter and Nine Months 2012 Results 5 November 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 3Q 2012 Results 9M 2012 Results Market Updates Credit Standing Outlook 3
Slide 4: Executive Summary
Executive Summary DEL MONTE PACIFIC THIRD QUARTER GROWTH DRIVEN BY BRANDED BUSINESS • Third quarter sales grew 11% to US$117m, while net profit rose 7% to US$8m • Del Monte branded business in the Philippines and S&W in Asia Pacific were growth drivers 4
Slide 5: Third Quarter 2012
Third Quarter 2012 3Q 3Q In US$m Chg (%) Comments 2011 2012 Higher sales due to S&W branded Turnover 105.3 116.6 +10.7 business and the Philippine market Higher volume and better sales Gross profit 25.5 29.5 +15.8 mix Operating profit 11.6 13.3 +14.2 Higher gross profit Finance 0.4 (1.0) -344.8 FX l
Slide 6: 3Q Turnover Analysis
3Q Turnover Analysis Others 28% E&NA 10% Asia Pacific 62% Asia +21.8% • Strong sales of juices in the Pacific Philippines E&NA -24.6% • Lower volume of processed pineapple and lower prices of pineapple juice concentrate Others +7.1% • Strong 26% sales growth of the S&W branded business, both process
Slide 7: Philippine Market 3Q 2012 Updates
T Philippine Market 3Q 2012 Updates • Strong growth across all product categories, in particular the beverage segment • Beverages grew on the back of continued momentum of juices • The culinary segment’s recovery was driven by new advertising campaigns • The growth of the processed fruit segment was
Slide 8: S&W 3Q 2012 Updates
T S&W 3Q 2012 Updates • The S&W branded business, both processed and fresh, expanded by 26% to US$7.8 million mainly in Asia and the Middle East • The Group entered new markets while deepening penetration in core markets.
Slide 9: India 3Q 2012 Updates
T India 3Q 2012 Updates • Higher sales in the processed foods business under the Del Monte brand • Share of loss of US$1.4 million for 46% stake in the FieldFresh joint venture, lower than prior year quarter’s US$2.7 million • Better sales mix, reduced overhead and tighter management of expenses • T
Slide 10: 3Q Margins
3Q Margins Gross margin % Better sales mix Margin Operating margin 30 25.3 Higher gross profit 24.2 Net margin 20 Higher financial expense 11.4 11.0 10 7.4 7.2 0 Gross margin Operating margin Net margin 3Q11 3Q12 10
Slide 11: 3Q Cash Flow Variance Analysis
3Q Cash Flow Variance Analysis Additional Working Investment 2Q12 Operations Cap Tax Capex in FieldFresh Others 3Q12 -US$123.6m -US$150.2m Net Debt Net Debt +16.4m -28.9m -0.8m -3.2m -1.2m -8.9m
Slide 12: 9M 2012 Results
9M 2012 Results
Slide 13: Nine Months 2012
Nine Months 2012 9M 9M In US$m Chg (%) Comments 2011 2012 Higher sales due to S&W branded business and the Philippine Turnover 271.1 300.2 +10.7 market Higher volume and better sales Gross profit 63.5 74.1 +16.6 mix Operating profit 25.8 30.8 +19.6 Higher gross profit Finance (0.9) (2.4) +177.7 Lowe
Slide 14: 9M Turnover Analysis
9M Turnover Analysis Others 30% Asia Pacific E&NA 59% 11% Asia +13.0% • Strong sales of juices in the Pacific Philippines E&NA -18.2% • Lower volume of processed pineapple and lower prices of pineapple juice concentrate Others +22.2% • Strong sales growth of the S&W branded business, both processed
Slide 15: 9M Margins
9M Margins Gross margin Better sales mix % Margin 30 Operating margin 24.7 Higher gross margin 23.4 Net margin 20 Lower equity loss in Indian affiliate 9.5 10.3 10 6.2 5.3 0 Gross margin Operating margin Net margin 9M11 9M12 15
Slide 16: 9M Cash Flow Variance Analysis
9M Cash Flow Variance Analysis Additional Investment Working in 3Q11 Operations Cap Tax Capex FieldFresh Dividend Others 3Q12 -US$107.0m -US$150.2m Net Debt Net Debt -50.7m -4.4m +63.2m -18.3m -2.5m -23.4m -7.1m
Slide 17: Credit Standing
Credit Standing Loan utilisation: only 40% of bank credit lines Loan Mix: 50% Peso and 50% US$ 91% Short term and 9% Long term Gearing and Coverage Ratios Net debt equity ratio = 64% Interest cover = 14x 17
Slide 18: Outlook
Outlook • Barring unforeseen circumstances, the Group expects to improve earnings in full year 2012 although the export markets will remain a challenge in the fourth quarter. • The expected earnings growth for the full year will be driven by revenue enhancements from better volume and sales mix in t