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.