Del Monte Corporation

Good evening to our conference call participants in the US, and good morning to our call participants in Asia, including Singapore, the Philippines, and other locations. This is the conference call for the fourth quarter and full year results of Del Monte Pacific Group, or DMPL, ending April 2020. Representing Del Monte in this call Arcito Alejandro, Group Chief Operating Officer of DMPL. Parag Sachdeva, Group CFO of DMPL and Del Monte Foods Chief Operations Officer and CFO. Greg Longstreet, CEO of Del Monte Foods. And this is Iggy C. Son, Chief Corporate Officer of the MPL. Before we start the call, may we request everyone to please mute his or her phone? Thank you. So, Parag Sachdeva will now present our results.

Thank you, Iggy. On slide five, starting with both water highlights, Group sales expanded by 48% due to pandemic-driven higher consumption of healthy and culinary home products, with US sales up 65% and Philippines sales up 18%. EBITDA increased by 44% to US dollar 55.9 million, but one-off plant optimization and retiring loan-related expenses in U.S. contributed to a net loss of $12.4 million. Net profit would have been U.S. dollar $4.8 million without one-off expenses. Our subsidiary Del Monte Philippines, Inc., BMPI, had a net profit for the full year of $67.6 million. We had a private equity investment in a 12% stake in DMPI for US dollar 120 million, which is resulting in a valuation of US dollar 1 billion for DMPI and a net gain of US dollar 77 million that was booked in retained earnings. Special dividends. of US dollar 1.4 cents per share was declared. We have successfully refinanced Del Monte food loans as a subsequent event. Slide six. In terms of outlook, we will continue to meet sustained demand for our trusted, healthy shelf-stable products. and continue to optimize our production facilities while implementing strict safety measures. Our strategy is to strengthen the core business, expand the product portfolio in line with market trends for health and wellness, and grow our branded business while reducing non-strategic business segments. Aside from the DMPL-based business, DMFI is also well positioned to improve performance in fiscal year 21 with better sales mix and management of costs. We do not anticipate material one-off costs in the coming fiscal year. The DMPL group is expected to return to profitability in fiscal year 21 by unforeseen circumstances. However, due to the seasonal nature of the group's business, Some quarters may still incur a net loss. On slide seven, fourth quarter group results summary. Sales of 638.4 million, higher by 47.6 versus prior year. US sales, as mentioned, are up 65.2%. Philippines higher by 14.5% in local currency and 17.7% in US dollar terms. SMW brand in Asia declined by 50%.

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