Del Monte Pacific - Phillip Securities 2023-03-15: FX & Weak Festive Spend A Drag

• 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 an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.

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 Dividend Payout Dates & Corporate Actions,
Del Monte Pacific News