Del Monte Pacific

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#21
http://infopub.sgx.com/FileOpen/DMPL-DMF...eID=259470

Quote:ACQUISITION OF DEL MONTE FOODS’ CONSUMER FOOD BUSINESS
· Acquisition of leading U.S. canned fruit, vegetable and broth business
· Includes iconic U.S. brands Del Monte, Contadina, S&W and College Inn
· Reunites Del Monte Pacific with U.S. mother brands and opens access to well-established and profitable U.S. packaged food market
· Adds net sales to Del Monte Pacific of more than US$1.8 billion and adjusted EBITDA of approximately US$180 million


Not vested.
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#22
http://infopub.sgx.com/FileOpen/DMPL-DMF...eID=259469

http://infopub.sgx.com/FileOpen/DMPL-DMF...eID=259470

Interesting....

<not vested>
Not a call to Buy or Sell

Mr Bump: All I Can Smell Is My FEAR
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#23
分久必合, 合久必分
Big Grin
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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#24
http://infopub.sgx.com/FileOpen/DMPL-DMF...eID=259469

While it appears earnings accretive to Del Monte, based on annex B -the target group's adjusted EBIDTA has been on the decline for the last 3 years...

Unless the pinos know something we don't know, when KKR sells out, it may mean that they see things differently...

Vested
Odd Lots
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#25
They have a rights issue in Philippines, what happens to the share holders in Singapore? anybody has any idea?
Disclaimer :-

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#26
Interesting to see how the acquisition DMFI will play out. This could be big. I think market reacted negatively on the net loss due to one time aquisition expense.

I think they still have some residual acquisition expense for the 1Q.

(high on my watchlist)
Time to roll!!!
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#27
The 1Q result of the company, after the major M&A.

The key management discussion of the result is here
http://infopub.sgx.com/FileOpen/DMPL-Q1F...eID=314609

At the net profit level, it is still losses, even exclude acquisition-related expenses of US$19.5 million net of tax.

The current gearing is close to 8x, with net debt of more than US$1.8 billion. The debt will be paid down by capital call of US$520 million, via a perpetual preference share offering and, thereafter, a rights offer, base on the disclosure. The gearing will be still significantly high even after the capital raised.

Is the acquisition too huge to swallow by the company? Let's see the result of integration in the next few quarters...

(not vested)

Del Monte Pacific Limited posts net loss of $27.7 mil for 1Q due to acquisition-related expenses

Del Monte Pacific Limited (DMPL) said the group achieved sales of US$445.6 million for the first quarter ended July, which included sales of US$339.5 million from Del Monte Foods, Inc (DMFI) of the US which was acquired by DMPL in February 2014.

However, DMPL posted a net loss of US$21.9 million mainly due to acquisition-related expenses. These costs included higher interest expenses from a long-term loan to acquire DMFI and short-term bridge financing of DMPL, which will be refinanced with an equity offering in the Philippines.

DMPL said group EBITDA before acquisition expenses and non-recurring expenses was actually US$21.5 million and is expected to further strengthen in FY2015.

DMPL’s branded business in Asia (comprising of Del Monte in the Philippines and the Indian subcontinent, as well as S&W in Asia and the Middle East), and export sales globally, generated sales of US$120.6 million and net profit of US$6.4 million before acquisition-related interest expenses.
http://www.theedgesingapore.com/the-dail...enses.html
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#28
I wonder how the DMFI bottom line looks like. Interesting to see how it will benefit them in the long run. I haven't seen the report so not sure if they have the break down.

(not vested)
Time to roll!!!
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#29
Classic example of good business but poor financial management record. Likelihood of turnaround should be high but can investors stomach the level of debt?
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#30
(23-09-2014, 08:27 AM)mrEngineer Wrote: Classic example of good business but poor financial management record. Likelihood of turnaround should be high but can investors stomach the level of debt?

Debt is the enemy of turnaround story. I am watching this stock as well. Unless the debt level is managed properly, otherwise the story remains weak.

(not vested)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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