- Del Monte Pacific (SGX:D03)'s 3Q23 earnings were below expectations. 9M23 revenue and PATMI was 73%/67% respectively of our forecast. Gross margins contracted much larger than expected.
- The weakness in earnings was due to a 12% decline in the Philippine peso and disappointing festive demand in China and the Philippines.
- - Read this at SGinvestors.io -
- Del Monte Pacific remains a market leader in multiple consumer products in the US and the Philippines. We maintain our BUY recommendation ob Del Monte Pacific and cut our target price to S$0.40 (previously S$0.67), pegged to 6x FY23e P/E, a 50% discount to the industry valuation due to its smaller market cap and higher gearing.
- - Read this at SGinvestors.io -
The Positives
Market shares maintained.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Paul Chew Phillip Securities Research | https://www.stocksbnb.com/ 2023-03-15
Previous report by Phillip:
2022-12-12 Del Monte Pacific - Record Margins From Price Increases.
Price targets by other brokers at Del Monte Pacific Target Prices.
Listing of research reports at Del Monte Pacific Analyst Reports.
Relevant links:
Del Monte Pacific Share Price History,
Del Monte Pacific Announcements,
Del Monte Pacific Dividends & Corporate Actions,
Del Monte Pacific News Articles
