- Del Monte Pacific (SGX:D03)'s results were better than expected. 1H23 revenue and PATMI (excluding one-offs) were 49%/67% of our FY23e forecast. The continued push towards branded products drove gross margins to 29%, and is ahead of our modelled 26% from increases in selling price.
- - Read this at SGinvestors.io -
- We raise our F23e earnings forecast for Del Monte Pacific by 19% to adjusted US$123mil. We maintain our BUY recommendation on Del Monte Pacific and nudge our target price lower to S$0.67 (previously S$0.69), pegged to 8x FY23e P/E, a huge 50% discount to the industry valuation due to its smaller market cap and higher gearing.
- - Read this at SGinvestors.io -
Del Monte Pacific FY22 – The Positives
Record gross margins.
- Gross margin climbed to record high 29.4%, a 2% point rise y-o-y. Margin gains were from US operations from multiple price increases over the past 18 months. These have supported margins despite raw material and logistics cost pressure.
- There was also operating leverage from a slower 6% rise in general and administration expenses.
Sharp rebound in Philippines.
- Read more at SGinvestors.io.
