Del Monte Pac    Last:0.074    +0.01

Del Monte Pacific Ltd

Anyone can advise on this falling knife?

 

hope for a rebound soon =O

fu6790g      ( Date: 22-Nov-2013 14:33) Posted: Well Del Monte have a warehouse in philippines though it is not directly hit by Haiyan but surely there will be some impact ? Markie      ( Date: 22-Nov-2013 13:35) Posted: yeah. what happen to the stock? drop from high of 99cents to 67 cents now! CIMB recommended buy a few days ago on its strategy report.

 

Well Del Monte have a warehouse in philippines though it is not directly hit by Haiyan

but surely there will be some impact ?

Markie      ( Date: 22-Nov-2013 13:35) Posted: yeah. what happen to the stock? drop from high of 99cents to 67 cents now! CIMB recommended buy a few days ago on its strategy report.

 

yeah. what happen to the stock? drop from high of 99cents to 67 cents now! CIMB recommended buy a few days ago on its strategy report.

 

Watch happened? Tot this one is budding super group or cerebos with the buying of the USA stake

 

Del Monte announced 3QFY14 results which were largely in line with estimates. Net profit came in at US$7.2m (-13% y/y, +17% q/q) while revenue was at US$127.0m (+9% y/y, +5.0% q/q). The lower y/y bottom-line was largely due to a one-off transaction fee of US$1.7m for the proposed acquisition of Del Monte Foods? consumer food business in the US, barring which core earnings was up 7% y/y to US$8.9m. The branded business of DMPL in Asia, comprising of Del Monte in the Philippines and the Indian subcontinent as well as S& W in Asia and the Middle East, accounted for 65% of total sales in the quarter, and generated higher sales with a 4% growth, on back of increased volume production and consumption. The Group?s non branded business generated sales of US$44.8m (+19%), on improved sales of processed pineapple and tropical mixed fruit products, lifted operating profits for the division to US$1.9m (+16%), despite lower pineapple juice concentrate (PJC) prices of 16% y/y. Going forward, the group expects to improve base earnings in 2013 driven by both branded and non branded business with higher revenue from better volume and sales mix in the Philippines, S& W markets and export markets. Aims to pursue sales of higher margin value-added products and continue implementing operational efficiencies, procurement savings and active cost management. The latest result brings Del Monte?s 9MFY14 core earnings to US$20.7m (+11%), which translates to an annualized 34x FY14E P/E, versus recent M& A transactions in Asia which translates to a P/E of 30x. Latest broker ratings as follows: DBSV downgrade to Hold with TP $0.96

 

The company  release a better Q3 result last nite but the share price fell. Good entry price at 0.965 now for mid term trading.

 

Maybank-KE lifts TP to $1.30 from $1.05, reiterates Buy. Says it is pleasantly surprised by Del Monte?s purchase of the consumer business of Del Monte Foods (DMF) ? its original parent in the US ? in a deal worth US$1.675b. This will change the profile of Del Monte dramatically, into a global foods company that owns one of the most iconic brands in the world. Based on the latest financials, the acquisition works out to 9.4x EV/EBITDA (14.5x P/E), which compares favorably to the most comparable recent transaction of Lucozade / Ribena (13.5x EV/EBITDA). Even in a bear case scenario, the deal is significantly accretive. There is a good fit between the two entitles, as they operate in different geographies. Synergies would likely come from brand ownership and cost savings in certain food production. Furthermore, there are pockets of opportunities such as the US juice market, fruit-cups, US Filipinos consumer for sauces and South America which is untapped. Maybank KE will host Del Monte on the upcoming non deal roadshows in Singapore (16 Oct) and Hong Kong (7 Nov).

 

If it closed above 0.88 today, it will look like a start of a uptrend in technical chart.

 

 

Oct 11 2013  09:08:03 AM 

PRESS RELEASE - ACQUISITION OF DEL MONTE FOODS CONSUMER FOOD BUSINESS 

http://infopub.sgx.com/Apps?A=COW_CorporateAnnouncement_Content& B=AnnouncementToday& F=1013505#.Uldtr1BTSSo 

 

Oct 11 2013  09:06:37 AM

THE PROPOSED ACQUISITION OF DEL MONTE FOODS CONSUMER FOOD BUSINESS (PROPOSED ACQUISITION) 

http://infopub.sgx.com/Apps?A=COW_CorporateAnnouncement_Content& B=AnnouncementToday& F=1013504#.Ulds_VBTSSo   

 

 

 

By  Bloomberg News  -  Oct 11, 2013 10:18 AM GMT+0800 

Del Monte Pacific (DELM)  Ltd., the seller of fruit juices in the Philippines and India, said it agreed to buy the consumer food business of closely held  Del Monte  Foods Co. for $1.68 billion to expand in the U.S.

The transaction will give Del Monte Pacific the rights to brands including Del Monte and College Inn processed food product brands in the U.S. and South America, the company said in a statement to the Singapore stock exchange today. 

Taguig, Philippines-based Del Monte Pacific is looking to expand its business in the U.S., where  consumer spendingrose in August for a fourth consecutive month. While the two companies are separate entities, the Asian firm already owns the Del Monte brand in the  Philippines  and is a licensee in parts of the region.

Del Monte Foods, the U.S. company selling the business, is owned partly by KKR & Co.

The Singapore-listed company will finance the acquisition through a $930 million long-term loan and by issuing new stock in a newly created unit to run the U.S. business, according to the filing. The transaction is still subject to regulatory approvals and customary closing conditions.

To contact Bloomberg News staff for this story: Liza Lin in Shanghai atllin15@bloomberg.net 

 

 

 

 

 

Del Monte Pacific seen targeted as Suntory opens purse: Update 

WRITTEN BY BLOOMBERG

THURSDAY, 18 JULY 2013 19:04

Suntory Beverage & Food’s plan to spend more on takeovers than any Japanese soft-drinks rival over the past decade has made a target of Del Monte Pacific.

Following Asia’s biggest initial public offering of 2013, the maker of Boss coffee and Orangina soda has said it will spend as much as $5 billion on deals to help double sales by 2020. Del Monte Pacific, the US$893 million ($1.13 billion) seller of fruit juices in the Philippines and India, would meet Suntory’s need for fast-growing, emerging market assets, said Malayan Banking Bhd.

Del Monte Pacific “has a very attractive brand, so it does make sense,” James Koh, a Singapore-based analyst at Maybank, said in a phone interview. “These Japanese food and beverage companies have slow growth at home and very strong product expertise built up over many years.”

Suntory’s takeover budget surpasses spending by any Japanese acquirer of overseas non-alcoholic beverage companies since 2000, according to data compiled by Bloomberg. With the Tokyo-based company cutting reliance on its home market, Del Monte Pacific, based in Taguig City, Philippines, offers a distribution network across the country, Oversea-Chinese Banking Corp. said.

Del Monte Pacific today rose as much as 4.2%, and closed up 3% at 86.5 Scents, its highest in more than a month. The shares have gained 69% in 2013.

Suntory, the soft-drinks subsidiary of Suntory Holdings, started trading this month after raising almost $4 billion in Japan’s largest IPO in almost a year. The company, which also owns the rights to Schweppes in Europe, said it plans to double sales to 2 trillion yen ($25.3 billion) and intends to spend as much as 500 billion yen on acquisitions.

FAST DECISION
“The IPO is an announcement that ‘we’re ready to buy,’” said Mikihiko Yamato, deputy head of research at Tokyo-based JI Asia. “If they show they have the money from the equity markets, the potential sellers or the advisers will be coming.”

Nobuhiro Torii, Suntory’s chief executive officer and president, said in a July 9 interview he’s hunting in both mature and emerging markets.

In developing nations, distribution is key, said Torii, great-grandson of Shinjiro Torii, who founded Suntory in 1899. As early as September, Suntory’s mergers-and-acquisitions team will begin discussing more than 100 targets with the board, he said.

“They could already be talking to the adviser companies,” Yamato said in a phone interview. “It’s a family-led company, which means for M& A, they’ve got a faster decision-making process.”

PHILIPPINES’ GROWTH
Ribena and Lucozade, blackcurrant and energy drinks brands put up for sale by GlaxoSmithKline Plc in April and valued by analysts at $2.3 billion, might be among the targets, Yamato said.

“Lucozade and Ribena are a good fit,” Phil Carroll, an analyst at Shore Capital Stockbrokers Ltd. in Liverpool, England, said in an interview. “They’d be buying into established brands, so that takes part of the investment risk away.”

Profit at Suntory fell 21% last year to 23.4 billion yen, and more than two-thirds of its revenue came from Japan, according to data compiled by Bloomberg.

The Philippines, with Southeast Asia’s second-largest population after Indonesia, may be a focus for acquisitions, said Lim Siyi, a Singapore-based analyst at Oversea-Chinese Banking.



“Del Monte could provide them a good distribution network,” he said, referring to Suntory. “They’ll need local partners to penetrate these diverse markets.”  DEFINITE APPEAL
The Philippines is the largest market for Del Monte Pacific, which sell juices, canned pineapple and tomato ketchup. Net income at the company, which also sells food in Asia and the Middle East under the S& W brand, has almost tripled in three years to US$32.1 million.

“We are considering acquisitions, but the company hasn’t decided on targets yet,” said Kana Kamitani, a spokeswoman for Suntory. Jennifer Luy, Singapore-based investor relations manager at Del Monte Pacific, declined to comment, as did Glaxo spokesman Simon Steel.

Should Suntory use all of its US$5 billion allocation for takeovers, it will outspend any other Japanese acquirer of overseas non-alcoholic drinks companies, data compiled by Bloomberg show. Kirin Holdings Co. has spent about US$4.5 billion on foreign non-alcoholic acquisitions, including dairy companies, the data show.

HUGH CASHPILE
Closely held Suntory Holdings, which still controls Suntory Beverage, bought France’s Orangina Schweppes Group in 2009. While the value of that deal was never disclosed, people with knowledge of the matter said it was about 2.6 billion euros, or about US$3.9 billion at the time.

In October 2011, Suntory was in talks to buy bottled-water assets from Danone, owner of the Evian and Volvic brands, people familiar with the matter said at the time. No deal was ever reached.

A purchase of Del Monte Pacific would require Suntory to persuade the controlling shareholder, NutriAsia Pacific Ltd., to part with the company. A representative for NutriAsia said in an e-mail that any talk of a sale was speculation and declined to comment.

Suntory risks shareholder scrutiny if it fails to reach its acquisition goals, said Mariko Semetko, a credit analyst at Moody’s Corp. in Tokyo.



“They’re sitting on a huge pile of cash,” she said in a phone interview. “Developed markets are saturated and if you want growth, it is natural to seek growth overseas. From a diversification standpoint, it makes sense.”

 

 

 

 

 

 

DBS Vickers maintains buy call for Del Monte Pacific with 97 cents target price

DBS Vickers is standing by its buy call on Del Monte Pacific with a target price of 97 cents. “We maintain our Buy recommendation with a DCF-backed TP of $0.97, implying FY14F PE of 22.5x. This is projected to decline to 16.3x by FY15F. We view DMPL as inexpensive, trading at c.17.6x PE on FY14F, compared to regional F& B peers’ trading at an average PE of 24x.”

DBS Vickers’ analyst Andy Sim says he sees Del Monte Pacific as a key branded consumer play with 60% revenue from Philippines with clear growth drivers in place, supported by its established brands.

Sim says growth drivers in the near term will be from the Philippines market, expansion of S& W brands for processed and fresh fruits in Asia and Middle East, and management’s strategy to shift production of pineapple juice concentrates to ready-to-drink canned beverages. By FY15F, the changes in long term supply contracts and expiry of its PET toll packing contracts are further expected to lift earnings to US$62 million, representing CAGR (FY12–15F) of 25%.



There were queries on the group’s net gearing which rose to a high of 62% as of 1Q13 given that interest rates could potentially rise. However, gearing is expected to taper down to about0.4-0.5x. Management shared that 90% of its loans are short term in nature and are aware of risks from a rise in interest rates. They would be looking to manage their loan maturities going forward. On DBS Vickers’ estimates, it estimates that a 1ppt rise in interest rates could impact FY14F/15F earnings by –2.2%/–1.6%. 

...Last Done: $0.805... 

 

  Singapore Daily

Del Monte Pacific:  Time For A Pina Colada Initiate Buy TP $1.00
DELM SP | Mkt Cap USD747m | ADTV USD0.5m
Ø   DMPL is a dominant F& B player in the Philippines, where it owns the rights to the Del Monte brand. New management team since 2006 has been reshaping the company and the fruits of their labour would be more evident in the next three years. 
Ø   We see the company experiencing a structural shift towards higher margins and ROE (from 13% currently to 20% by FY15F), as its business model changes from being an OEM exporter outside Philippines to a brand owner. This will be accelerated by the expiry of unfavorable supply contracts by FY14.
Ø   Our TP of SGD1.00 is pegged to 25x FY14F PER, justified by a 22% net profit CAGR and dividend payout of 75%, which is superior to ASEAN-listed peers. Initiate with BUY.


Click here for full report                              jameskoh@maybank-ke.com.sg 

http://research.maybank-ib.com/pdf/document/Del_Monte_Pacific_IC_010713_4557.pdf 

 

Singapore Daily Del Monte Pacific: Time For A Pina Colada Initiate Buy TP $1.00 DELM SP | Mkt Cap USD747m | ADTV USD0.5m Ø DMPL is a dominant F&B player in the Philippines, where it owns the rights to the Del Monte brand. New management team since 2006 has been reshaping the company and the fruits of their labour would be more evident in the next three years. Ø We see the company experiencing a structural shift towards higher margins and ROE (from 13% currently to 20% by FY15F), as its business model changes from being an OEM exporter outside Philippines to a brand owner. This will be accelerated by the expiry of unfavorable supply contracts by FY14. Ø Our TP of SGD1.00 is pegged to 25x FY14F PER, justified by a 22% net profit CAGR and dividend payout of 75%, which is superior to ASEAN-listed peers. Initiate with BUY. Click here for full report jameskoh@maybank-ke.com.sg http://research.maybank-ib.com/pdf/document/Del_Monte_Pacific_IC_010713_4557.pdf

 

 

30-May-2013 07:51:52   

PRESS RELEASE: DMPL RECEIVES APPROVALS FOR LISTING BY WAY OF INTRODUCTION ON THE PSE   

http://info.sgx.com/webcorannc.nsf/AnnouncementToday/632E6A39B047C9AE48257B7A00805C62?opendocument 

 

30-May-2013 07:50:17  

UPDATES ON PROPOSED LISTING ON THE PHILIPPINES STOCK EXCHANGE

http://info.sgx.com/webcorannc.nsf/AnnouncementToday/0E1B11463EA01F8448257B7A007FEA9E?opendocument

 

 

 

 

May 28, 2013 4:46pm 

Subsidiary Del Monte Philippines owns the 23,000-hectare pineapple plantation in Mindanao, dubbed as the world’s largest pineapple operation with a 700,000-ton processing facility. —  VS, GMA News 


28-May-2013 08:01:36    

UPDATES ON PROPOSED LISTING ON THE PHILIPPINES STOCK EXCHANGE 

http://info.sgx.com/webcorannc.nsf/AnnouncementLast3MonthsByCompanyNameAndCategory/5B37D266FCB5302648257B780081BAB5?opendocument 

 

 

 

 

Del Monte posted 1Q13 results which was below street estimates. Rev at US$87.4m +17% y/y and -43% q/q, while net profit at US$4.5m, +2% y/y and -7% q/q . Gross margins at 22.6% vs 23.6% yoy.

Del Monte attributed the increase in sales to stronger performance of its branded business in the Philippines and improved sales in the fresh market. Sales of its processed fruit, culinary and canned beverage segments in the Philippines continues to be strong, with growth coming in at 34%. The co attributed this to both the buoyant Philippine economy and its aggressive advertising efforts there. Rev from Del Monte's S& W branded fresh business also increased by 20% y/y driven primarily by robust sales in Japan, the Middle East and Singapore. Bottom-line was however weighed by an increase in warehousing costs as a result of high inventory from weak export sales.

Barring unforeseen circumstances, the Group expects to improve earnings in 2013 driven by the branded business, although cites challenges in the export markets with low PJC prices and weak demand, where the Group is actively addressing this by cutting back on tonnage, shifting volume to stronger markets and growing sales of more value-added products

Aims to implement operational efficiencies, procurement savings and active cost management and shift revenue mix over a period of time towards more branded sales to deliver higher margins and more sustainable profits.

 

 

 

 

 

Mainboard-listed Del Monte Pacific Limited said it has submitted on Thursday an application for a secondary listing on the Philippine Stock Exchange (PSE).

The company said there would be no immediate issue of new shares but may be offering vendor shares, subject to market conditions.

It believes the dual listing would help widen its investor base to include those in the Philippines and those interested in the stock market there.

It also hoped it will see greater trading liquidity and attract more research coverage on the company. 

 

http://www.businesstimes.com.sg/breaking-news/singapore/del-monte-seeks-secondary-listing-philippines-may-offer-vendor-shares-201304 

 

 

 

 

Food & Beverages SINGAPORE


March 14, 2013 (CIMB report done before 1:5 bonus issue, ex-date 9 Apr 2013) 

Del Monte Pacific COMPANY NOTE

DELM SP / DMPL.SI

Current S$0.90  (S$0.75 Adj) SHORT TERM (3 MTH) LONG TERM

Target S$1.05     (S$0.875 Adj for 1:5 bonus issue)                   OUTPERFORM

Previous Target S$ 

shares Up/downside 16.7% 

Market Cap Avg Daily Turnover Free Float    

US$776.4m US$0.29m 9.9%    

S$970.0m S$0.36m 255.2 m      

Sweet 16 sweeter 15

Sweet 16 is Del Monte Pacific’s (DMPL) bestselling fresh pineapple. We believe 2015 will be sweeter with adjustments to its unprofitable supply contracts, a cost-saving project and the possibility of breakeven for its Indian JV. 

For the details of the 48-page report, please read from this link 

http://www.remisiers.org/cms_images/research/Mar11-Mar15_2013/DelMonte15032013cimb.pdf