Stock Market PILIPINAS: Empowering the Filipino Investors

Full Version: Del Monte Philippines Inc.
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
Del Monte Philippines books P2.6-B profit

DEL MONTE Philippines, Inc. (DMPI)’s net income was flat for its fiscal year ending April 2018, due to higher interest expenses amid a single-digit growth in sales.

In a statement issued Wednesday, the local unit of listed canned fruit manufacturer Del Monte Pacific Ltd. said it booked a net income of P2.6 billion, lower by P0.1 billion from the year before.
This came amid a 3.4% increase in sales to P27.6 billion for the year, two-thirds of which came from the Philippine market.

The latest annual performance indicates a compounded annual growth rate (CAGR) for the company’s sales of 7.9% from 2015, where it delivered P22 billion. For net income, CAGR stood at 31% since 2015’s net income of P1.1 billion.

“The company achieved this through improvement in gross profit from higher sales volume, margin increase from the Philippine market, higher mix of fresh pineapple sales under S&W, aided by the weak peso versus the US dollar, revaluation of biological assets, improving operational efficiency and cost management,” DMPI said.

Sales from the Philippine market alone grew 6.7% to P16.9 billion. The company attributed the increase to strong demand for food services, the sales of which accelerated by 15% to P3 billion.

“(The increase rode on) the rapid expansion of quick service restaurants and convenience stores as well as the company’s growth of its juice dispensers, meal partnerships, and customized products,” DMPI said.

Within the year, the company launched the Del Monte 100% Pineapple Juice in Tetra Pak, which is now its fastest growing segment. It also introduced the Del Monte Juice & Chews in bottles, and Del Monte Fit ‘n Right Active.

The growth from Philippine sales outpaced the 1.9% drop in export sales to P10.6 billion, due to an excess in supply in Thailand and Indonesia. Its exports included the S&W brand and private label. The company has been changing its sales mix, shifting to the growing branded business.

“The Company expanded its sales under S&W fresh and processed pineapple at a compounded annual growth rate of 28% to P3.7 billion in Asia and Middle East markets, while it reduced its private label and commodity business during this period,” DMPI said.

DMPI expects to see higher earnings for the fiscal year ending April 2019, banking on the growth of the local market. For the export market, the company aims to improve its performance with higher fresh pineapple sales under S&W, alongside increased export margins from pricing and more efficient operations.

The company earlier this month postponed its planned initial public offering of up to P17.55 billion, citing volatility in the market which may affect investor sentiment for the stock. The proposed issuance has already been approved by the Securities and Exchange Commission and the Philippine Stock Exchange.


...baka daw ituloy na nila IPO Big Grin

Del Monte may pursue share sale this year

Del Monte Philippines Inc. may push through with its planned initial public offering this year.

Informed sources said Del Monte Philippines was set to decide in the next two weeks if it would push through or not with the planned maiden share sale this year.

With the Philippine Stock Exchange Index back around the 7,800-point level, sources said the company might consider the IPO once it saw a strong momentum for the index to go up to the 8,000-point mark.

Del Monte Philippines deferred its P13.5-billion maiden share offering in June due to the market volatility. 

The PSEi temporarily entered the bear market condition in June when it closed at 7,098.15, down 22 percent from a peak of 9,058.62 on January 29.

The market since then has climbed back to the 7,800 level on improving sentiments.

Another factor that could affect Del Monte Philippines’ decision was the large initial public offering of San Miguel Food and Beverage Inc.

Since both IPOs are in the food business, sources said Del Monte Philippines might want to avoid a potential clash with SMFB’s P142.8-billion IPO.

Del Monte Philippines, according to a filing earlier approved by the Securities and Exchange Commission, plans to sell 587.437 million in secondary shares.

The company plans to use the net proceeds from the offering to partially prepay and repay certain financial obligations.
The company has tapped BDO Capital and Investments Corp., BPI Capital Corp. and China Bank Capital Corp. as joint domestic lead underwriters, and DBS Bank Ltd. and Nomura as joint international lead underwriters.

Del Monte Philippines plans to sell up to 70 percent of the shares to domestic investors and 30 percent to foreign institutional and retail buyers.

Del Monte Philippines is engaged in the production and sale of food and beverage products in the Philippines under the Del Monte brand, such as fruit juices and juice drinks, packaged pineapple and mixed fruit, various tomato and spaghetti sauces and culinary mixes, and exports them under other brands.

It produces pineapple in its 25,000-hectare plantation in Bukidnon province and operates a processing facility with an annual capacity of 700,000 tons.