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DEL MONTE PACIFIC LTD.

FINANCIAL REPORT 2022

PRESENTED BY:
Nazaro, John Laurence
Negre, Olivia Joy
Orpiada, Gabriel
Panlaqui, Jenna Karylle
Pilapil, Dhenzel Ann
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Del Monte Pacific Limited along with its subsidiaries, is a global branded food and beverage
company that satisfies the demands of today's consumers for high-quality, healthy products. It is
dual listed on the Mainboards of the Singapore Exchange Securities Trading Limited and the
Philippine Stock Exchange, Inc. The Group develops, manufactures, promotes, and sells its
goods internationally. The Company distributes fresh pineapples under the S&W brand in
addition to packaged fruit, vegetable, and tomato products, sauces, condiments, pasta, broth,
stock, juices, and frozen pineapple. The trademark rights to Del Monte, Today's, Fiesta, 202, Fit
'n Right, Heart Smart, Bone Smart, and Quick 'n Easy in the Philippines are held by DMPL's
Philippine subsidiary, Del Monte Philippines, Inc., while other trademarks owned by DMPL
subsidiaries include Orchard Select, Fruit Refreshers, Veggieful, and Bubble Fruit.

Del Monte Pacific Limited's Philippine affiliate maintains a completely integrated pineapple
operation with its extensive pineapple plantation in Bukidnon, a frozen fruit processing facility,
and a fruit processing facility approximately an hour distant from the plantation. In Cabuyao,
Laguna, the Philippine subsidiary additionally runs a beverage bottling business. DMPL and its
subsidiaries are not associated with the other Del Monte enterprises across the world, which
include Fresh Del Monte Fruit Inc., Del Monte Canada, and Del Monte Asia Pte. Ltd., in
addition to its affiliations. NutriAsia Pacific Ltd. and Bluebell Group Holdings Limited, which
are beneficially owned by the Campos family of the Philippines, own 71% of Del Monte Pacific
Limited. In the Philippines, a subsidiary of the NutriAsia Group is the industry leader in liquid
condiments, specialty sauces, and cooking oil.

Del Monte took a significant amount of time to acquire the accomplishment that is now evident.
It is undoubtedly not really an easy route for Del Monte to expand. It was quite a challenging
journey to endure. Prior to actually reaching the peak of the mountain, Del Monte must
overcome several challenges. Del Monte's origins may be traced back to California in 1886. As
time went on, the company expanded further and began to establish its own empire. Del Monte
US eventually brought their efforts to the Philippines and started business up here in 1926. Del
Monte US, currently recognized as Del Monte Corporations, was eventually bought by RJR
Nabisco Incorporated. RJR Nabisco Incorporated sold Del Monte to an investment consortium
led by Merrill Lynch & Co. for 1.475 billion dollars in cash due to financial problems. The Del
Monte divestiture is a component of a longer-term strategy to reduce the massive debt
accumulated as a consequence of Kohlberg Kravis Roberts & Co.'s $25 billion in unsecured
borrowing throughout 1988. 1989 saw KRR sell and disassemble the Del Monte company. Del
Monte Philippines (DMPI) was completely unloaded from the Del Monte Corporations in 1996.
Del Monte Corporation was purchased by TGP in 1997. During 1999 Del Monte Corporations
registered on the New York stock exchange and Del Monte Pacific Limited (DMPL) was
established as the company's parent. Del Monte Pacific Limited was also registered on the
Singapore market this year as well. 85% of DMPL was purchased by NutriAsia Pacific Limited
in 2005. 2007 served as a launching pad for DMPL, who acquired the S&W brand from Del
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Monte Corporation throughout Asia and EMEA. 2011 saw the KKR investment group obtain Del
Monte Corporation and make it private. DMPL forms a strategic alliance with the Bharti group
to create FieldFresh Foods Private Ltd. NPL decreased to 67% in 2013 and DMPL listed on the
Philippine stock exchange. 2014 marks the date when DMPL rejoins the US Company after
purchasing the consumer food division of Del Monte Corporation from KKR for 1,675 billion
USD. DMPL reports its preferred share in PSE for the 2017 calendar year. Private equity
companies will acquire 13% of DMPI in 2021.

NutriAsia Pacific Ltd. and Bluebell Group Holdings Limited, both owned by the Philippine
Campos family, hold 71% of DMPL. In the Philippines, a division of the NutriAsia Group leads
the market for cooking oils, specialty sauces, and liquid condiments. The other Del Monte
businesses across the world, such as Fresh Del Monte Produce Inc., Del Monte Canada, and Del
Monte Asia Pte, are not connected to DMPL and its subsidiaries. Ltd. and the affiliates of these
businesses.

Over the course of 21 years, Del Monte Pacific Limited has received a number of significant
accomplishments. Between 2010 and 2022, DMPL won 15 awards in total from the Singapore
Corporate Awards. They won Gold in Best Investor Relations in 2011 and 2017; bronze in 2014,
another gold for Best Annual Report in Gold; Silver in 2013 and 2018; and Bronze in 2010,
2012, 2014, 2016 and 2017. Between 2001 and 2021, the Securities Investors Association in
Singapore, or SIAS, gave them a total of 8 honors, including the Shareholder Communication
Excellence Award in 2018 and 2019, the Corporate Governance Award in 2014, 2019 and 2021,
and the Transparent Company Award in 2001, 2013 and 2017. As of April 2018, Del Monte were
ranked #23 out of the top 100 largest Singapore-listed firms by the ASEAN Corporate
Governance Scorecard. Among the 700 Singapore-listed businesses reviewed in October 2017 by
EQS-Investor Relations Professionals Association (Singapore), Del Monte Pacific Limited was
awarded the best IR website.
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Financial Statements:

Question :

If you are a potential investor, would you invest in this company? Why?
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Nazaro, John Laurence:

A global brand presence with premium brands such as Del Monte and S&W that are well
known A lengthy brand history dating back 137 years A powerful local franchise that also holds
strong market shares in the United States of America and the Philippines pineapple grower that is
competitive on a global scale and is integrated Dedicated majority shareholder, as well as
experienced and innovative management.won a total of 14 honors from the Singapore Corporate
Awards between 2010 and 2019, including Best Managed Board, Best CFO, Best Investor
Relations, and Best Annual Report The Singapore Governance and Transparency Index ranked
the company 19th out of 519 Singapore-listed businesses in August 2021. The ASEAN
Corporate Governance Scorecard ranked the company 23rd out of the top 100 Singapore-listed
companies in April 2018.
I would like to invest in Del Monte because this brand is very well known for its
production of pineapples; however, aside from the publicity surrounding the brand, I will also
take into consideration the company's financial statement before deciding whether or not to make
the investment. Based on the company's financial statement, they are growing every year; their
net income in 2022 will be greater than their net income from the previous year, which was
76.420 . It is clear to you that a financial loss could be incurred by the company. Even in the
midst of the pandemic, the company is showing signs of further expansion. It is a good and
intelligent decision to invest in this firm altogether since it has a strong reputation in the business
sector and had a high financial standing that will make your investment worthwhile.
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Negre, Olivia Joy:

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Orpiada, Gabriel :
As a potential investor, I believe Del Monte Pacific Limited has more than enough esteem and
dependability to merit someone’s investment. DMPL has solid foundations to begin with. The
renowned premium Del Monte brands have served as the foundation for DMPL's centuries-old
brand history and global brand influence. Furthermore, Del Monte Pacific Ltd. has quite a
prominent domestic franchise with substantial market share leading in the United States and the
Philippines. They are a devoted majority shareholder with seasoned, dynamic management.

However, from the standpoint of a potential investor, after reviewing their financial report, I
believe investing in the firm will be of an acceptable level at best. Based on my calculations,
DMPL's asset growth rate has declined by 6.9% percent throughout the two-year period
analyzed. Another aspect I considered was the company's financial responsibilities. As seen in
the graph, shareholders' equity has fallen drastically while liabilities have increased somewhat; in
most cases, this is not a bad thing, but debt might become an issue if interest rates rise. Debt
repayment may be a substantial financial hardship on a corporation and considerably diminish its
profit margin (Esajian, P.,2022). Debt is fundamentally dangerous, and as a potential investor, it
can be fatal during an economic downturn. As a basis, I calculated DMPL's Debt-to-Equity
Leverage ratio to analyze the company's capability to fulfill its financial obligations. I arrived at
4.23 by dividing total liabilities and shareholders equity which suggests a significantly high
leverage ratio. A higher financial leverage ratio indicates that a company is using debt to finance
its assets and operations — often a telltale sign of a business that could be a risky bet for
potential investors (Fuchs, 2021).

Whilst Del Monte Pacific Ltd. has a high leverage ratio, it also denotes that the shareholders
have a high return on equity (ROE). According to my estimates, DMPL has a 23.35% return on
equity (ROE), which may be a favorable return for investors despite the fact that DMPL has a
high leverage ratio. A high ROE may imply that a firm is more successful in creating profit
internally. It does not, however, properly depict the risk involved with that return. To achieve a
bigger net profit, a corporation may rely extensively on debt, raising the ROE (Corporate
Finance Institute, 2022).

To sum up, DMPL's asset growth rate has decreased over the course of the two-year period under
analysis, its shareholders' equity has dropped sharply while its liabilities have increased, which in
some instances may be regarded as risky. In terms of profitability, DMPL has a high ROE which
might make investing considerable. However there are still a lot of factors that need to be
considered such as the company’s leverage ratio and in this situation, DMPL has a significantly
high debt-to-equity leverage ratio, which decreases the assertion of their high ROE, puts DMPL’s
capability to fulfill their financial obligations into question, and further establishes the riskiness
of investing in the company. Therefore, I will not be investing in Del Monte Pacific Limited.
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Panlaqui, Jenna Karylle:

If I were offered the option to invest in the company of Del Monte Pacific Limited, I
would first review their financial statements. By examining the revenue, profit, costs, and debt of
a firm, investors can decide whether it is financially viable. Seeing the significant increase in
their net income comparing the current year to the previous year, the growing net income is an
indication of a profitable business. The company's earnings is where the amount of profit the
business produced after covering all of its expenses, also referred to as the bottom line. This is
where the sum of money the firm has available to pay dividends, buy back shares, reinvest in the
company, or simply add to its cash. It reflects a company's profit for the time period after
considering for all business-related factors, net income is crucial to consider in investing in a
company.

Another thing to consider is the company’s gross revenue, which too had a noticeable
increase from the previous year as well. The financial performance of a business and the
determination of whether sales have climbed or dropped heavily depend on the sales and revenue
growth. The financial statement of Del Monte shows all these promising signals so far. With all
of these information, I trust that I’ll benefit as much as they would when I invest in their
company.
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Pilapil, Dhenzel Ann:

There are a lot of factors to consider if we are to invest in a company. Del Monte Pacific LTD.
took a bumpy road to achieve their success. Considering the fact that Del monte Pacific is
widely known for their quality food and beverages. They are also known for selling and
generating high quality global products that satisfy consumers’ demand. In light of this Del
Monte Pacific LTD. has already won tons of awards from 2010 until the present year (2022).
They received many notable achievements, some of which is the Best annual Report during 2013
and 2018.

The financial statement of Del Monte LTD. Reflects their capability as a company. Having said
that, total assets as well as the total liabilities of this company have a significant increase in the
current year compared to the previous year. This showcases the continued growth of the
company. This reflects that It shows that the firm has the capacity to make money and carry on
operating. The worth of the company rises as a result. According to Fernando J. (2022) When a
company's assets grow, so will its equity. Overall they have great financial statements from their
total assets and liabilities to their equity. With that being said yes I will surely invest in this
company given the fact that their financial statement is quite impressive and showcases their
capability. Another factor is that they have been present in quite a while and they already gain
consumers’ trust and loyalty.
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References
At a glance. Del Monte Pacific Limited - Home. (n.d.). Retrieved October 9, 2022, from

https://www.delmontepacific.com/about-us/at-a-glance

Company Close to Lenders’ February, 1990, Debt-Reduction Goal. Los Angeles Times. Retrieved

October 10, 2022 from

https://www.latimes.com/archives/la-xpm-1989-09-26-fi-270-story.html

Del Monte. (n. d.) 137 Years Heritage. Del Monte Quality. Retrieved October 7, 2022, from

https://www.delmontepacific.com/about-us/our-history.

Esajian, P. (2022, August 3). What Is A Good Debt-to-Equity Ratio? FortuneBuilders. Retrieved

October 12, 2022, from

https://www.fortunebuilders.com/what-is-a-good-debt-to-equity-ratio/

Fuchs, J. (2021, July 15). Leverage Ratio: What It Means and How to Calculate It. Retrieved

October 12, 2022, from https://blog.hubspot.com/sales/leverage-ratio

Ganga, M. (1989 September 6). RJR Sells Del Monte Operations for $1.4 Billion : Deal Puts Del

Monte. (n. d.). We are proud of our rich heritage of more than 130 years. Del Monte

Quality. Retrieved October 10, 2022, from

https://www.delmontepacific.com/about-us/our-history.

Our Awards. Del Monte Pacific Limited - Home. (n.d.). Retrieved October 8, 2022, from

https://www.delmontepacific.com/about-us/our-awards.

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