Del Monte stocks analysis

If you are on the same boat with us, wondering if you should or should not invest in Del Monte, you may check the Company’s audited and unaudited financial statements thru this link as your first step of evaluation.

As a recap, Del Monte Foods, Inc. (the North American food production and distribution company) was acquired by the Filipino multinational food and beverage company Del Monte Pacific Limited (DMPL) in an acquisition deal in 2014 that cost US$1.67 billion with $1.28 billion credit backing.

Credit is split among (1) $350 million asset-based revolving credit facility; (2) $650 million, seven-year term loan B; and (3) $280 million, 7.5-year second-lien term loan for a total of  $1.28 billion.

DMPL has been listed in the Philippine Stock Exchange since June 2013 but on Feb. 6, 2018, it announced its plans to raise up to $324 million (or 20% of outstanding shares) to pay its existing loans and for expansion.

It was the Philippines’ largest IPO since Pilipinas Shell Petroleum Corp’s $380.79 million share sale in October 2016 and the Southeast Asia’s largest for a food and beverage firm in nearly six years.

Since we have to gauge the Company’s performance, we used reuters to determine DMPL’s performance for the last 5 years, its dividend declaration, and if the stock performance is at par with its competitors (see graph below). Some of its peers are listed in this SWOT analysis.

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CAG is ConAgra while PCLB stands for Pinnacle Foods.

Also, based on the financial statements, we have noted that the Company has the following income (loss) since its 2014:

Period  Net Income (Loss)*
 April 2014                   (46,538.00)
 May 2015                   (54,525.00)
 May 2016                     30,194.00
 April 2017                   (41,512.00)

*in thousands of USD

Please note that these parameters are not the only bases for your evaluation but only serve as mere guide.

Our main goal here in BusinessSolutionsPH is to give you comprehensive info about anything related to accounting and investing. Hence, we cannot recommend any resolution based on our own analysis. All we can do is to help you determine the best possible course of action through the simplified materials we incorporate here in our platform.

Thank you and hope you find a decision where you are most delighted at!

Mag, Helping You Find Financial Freedom

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