Highlights

FY2018 Highlights

Group generated sales of US$2.2bn in FY2018, down 2.5% from prior year on higher Philippines and S&W Asia sales offset by lower USA and Europe sales
The US business accounted for US$1.7bn or 75% of total sales
The Philippine business delivered record sales of US$333.8m, up 7% in peso terms
The S&W business in Asia generated record sales of US$106.1m, up 6%
Without one-off items, the Group generated
- EBITDA of US$165.0m, down 22%
- Net profit of US$12.0m, down 74%
- Profitability impacted by unfavourable USDA and foodservice pricing in the USA, unfavourable sales mix and significantly lower industrial pineapple juice concentrate pricing in the international market
Including one-off items, the Group generated
- EBITDA of US$102.3m, down 47%
- Net loss of US$36.5m from net profit of US$24.4m in prior year
- One-off expenses in the USA were due to planned closure of factories to streamline operations and become cost competitive, and write-off of deferred tax assets due to the change in US Federal income tax rate
Strengthened the US organisation since September 2017 with the appointment of a new CEO and CMO, amongst others
Divested the underperforming Sager Creek business in USA
Delivered the balance sheet
- Additional US$100m of Preference Shares issued
- Purchased US$125m of loans at a discount which will result in significant interest and principal savings
- Almost doubled operating cash flow to US$323m, primarily on lower inventory in USA
- Gearing reduced to 2.4x equity from 2.9x in FY2017
Received Best Investor Relations (Gold) and Best Annual Report (Bronze) Awards from the Singapore Corporate Awards 2017, 12th SCA award since 2010
Del Monte Philippines bagged the 7-Eleven Suppliers’ Excellence Award, and FieldFresh Foods, our JV in India, received the Yum! Innovation Excellence Supplier Award

Five-Year Summary

Financial Year ended April¹	FY2018	FY2017	FY2016 (As Restated)²	FY2015 (As Restated)²	CY2013
(Amounts in US$ million unless otherwise stated)
Profitability³
Turnover	2,197.3	2,252.8	2,274.1	2,190.0	492.2
Gross Profit	432.5	494.9	485.8	411.5	115.6
EBITDA	102.3	194.0	241.3	89.7	42.3
EBITDA - without Non-Recurring items	165.0	211.8	208.2	149.3	68.8
Profit/(loss) from Operations	29.5	127.6	168.0	38.3	27.5
Net Profit Attributable to Owners	(36.5)	24.4	57.0	(40.3)	16.1
EPS (US cents)	(2.70)	1.21	2.93	(2.90)	1.24
Net Profit - without Non-Recurring items	12.0	45.5	25.2	(3.8)	33.9
EPS - without Non-Recurring items⁴(US cents)	(0.20)	2.29	1.30	(0.28)	2.62

Gross Margin (%)	19.7	22.0	21.4	18.8	23.5
EBITDA Margin (%)	4.7	8.6	10.6	4.1	8.6
Operating Margin (%)	1.3	5.7	7.4	1.7	5.6
Net Margin (%)	na	1.1	2.5	na	3.3
EPS Growth (%)	na	58.7	201.0	na	(49.8)
Return on Equity (%)	na	5.1	16.1	na	6.7
Return on Assets (%)	na	0.7	2.2	na	2.9

Balance Sheet
Cash	24.2	37.6	47.2	35.6	132.9
Debt	1,465.2	1,714.0	1,843.8	1,718.5	276.7
Net Debt	1,441.0	1,676.4	1,796.6	1,682.9	143.8
Fixed Assets	610.9	657.2	661.2	679.3	99.5
Total Assets	2,509.1	2,757.1	2,706.4	2,628.4	617.6
Shareholders' Equity	608.3	578.6	377.0	330.5	228.4
Net Tangible Asset Per Share (US cents)	(5.5)	(8.4)	(19.2)	(22.1)	16.5
Net Debt to Equity Ratio (%)	236.9	289.8	476.6	509.2	62.9

Cash Flow
Cash Flow from Operations	322.9	187.1	108.0	308.6	27.8
Capital Expenditure	148.2	145.0	137.2	144.1	24.7

Share Statistics⁵
Number of Outstanding Ordinary Shares (m)	1,944.0	1,943.2	1,943.2	1,944.0	1,296.6
Number of Outstanding Preference Shares⁶ (m)	30.0	20.0	-	-	-

Singapore Exchange
Share Price⁷ (S$)	0.20	0.34	0.42	0.57	0.56
Share Price (US$ equivalent)	0.15	0.24	0.31	0.41	0.44
Market Capitalisation (S$ m)	383.0	651.0	816.1	1,102.3	730.0
Market Capitalisation (US$ m)	287.2	466.4	606.8	834.4	575.2
P&L rate: US$1 : S$	1.33	1.40	1.35	1.32	1.27
Price Earnings Multiple³ (x)	na	20.0	10.6	na	40.0

Philippine Stock Exchange
Share Price⁷ (Peso)	10.2	12.0	10.9	13.1	20.3
Share Price (US$ equivalent)	0.20	0.24	0.23	0.29	0.46
US$ : Peso exchange rate	51.7	49.9	46.9	44.5	44.4
Market Capitalisation (US$ m)	382.6	467.3	453.4	572.9	592.6
Price Earnings Multiple³ (x)	na	19.9	8.0	na	36.9

Share Price: Series A-1 Preference Shares⁶ (US$)	10.1	10.0	-	-	-
Share Price: Series A-2 Preference Shares⁶ (US$)	10.2	-	-	-	-

Dividend
Dividend Per Share (US cents)	-	0.61	1.33	-	0.62
Dividend Per Share (Singapore cents)	-	0.84	1.80	-	0.78
Dividend Yield (%)	-	2.5	5.2	-	1.1
Dividend Payout (%)	-	50.0	50.0	-	50.0

¹	DMPL's fiscal year ends in April in line with its USA subsidiary Del Monte Foods, Inc. For 2013, fiscal year was ending December.
²	DMPL adopted amendments to IAS 16 and IAS 41 (Agriculture: Bearer Plants in April 2017). The change in accounting standard was applied retrospectively. This involved reclassifying a portion of biological assets to plant, property and equipment leading to much higher depreciation expense. However, for EBITDA calculation, the Group retained the old calculation using the lower depreciation for comparability.
³	The profitability of the Group from CY2013-FY2018 had been impacted by non-recurring items mostly in the USA. Please refer to the Operating and Financial Review section of the Annual Report for more details.
⁴	EPS is calculated as earnings after preference share dividends resulting in a negative figure in FY2018.
⁵	DMPL ordinary shares were listed on 2 August 1999 on the Singapore Exchange and on 10 June 2013 on the Philippine Stock Exchange (PSE). Singapore share prices are converted to US cents for the purpose of computing financial ratios. DMPL did a 2:10 Bonus Issue with ex-date of 9 April 2013. It also did a Rights Issue in March 2015. New shares issued resulted in a 33% dilution.
⁶	Preference Shares started trading on the PSE on 7 April 2017 for Series A-1 and on 15 December 2017 for Series A-2.
7	Based on fiscal yearend prices, ie 30 April.

Highlights

FY2018 Highlights

Five-Year Summary

USA

Philippines

India

Asia