superior food knowledge, passion and innovation

integrity and utmost honesty

 Del Monte Foods, Inc.
Consolidated Statement of Financial Position
(In thousands of US dollars, except share and per share data)
2018 2017 2016
ASSETS
Current Assets
Cash 2,499 3,114 1,186
Inventories 643,138 819,249 770,388
Trade and other receivables 87,728 87,673 108,393
Prepaid and other current assets 14,606 20,117 19,860
Assets held for sale 5,504 0 1,950
Total Current Assets 753,475 930,153 901,777

Noncurrent Assets
Property, plant and equipment 406,878 464,701 466,044
Intangible assets and goodwill 701,765 728,121 737,451
Deferred tax assets 78,887 92,219 97,082
Net employee benefits 0 0 0
Other non-current assets 14,923 5,557 7,390
Total Noncurrent Assets 1,202,453 1,290,598 1,307,967
Total Assets 1,955,928 2,220,751 2,209,744
EQUITY AND LIABILITIES
Current Liabilities
Trade and other payables 147,492 160,485 168,981
Derivative liabilities 3,260 9,531 15,218
Deferred income 13,926 0 0
Intercompany payables 336,023 207,018 75,650
Current tax liabilities 243 228 222
Employee benefits 37,645 22,154 33,651
Loans and borrowings 10,250 169,114 225,879
Total Current Liabilities 548,839 568,530 519,601

Noncurrent Liabilities
Term loans 794,638 922,294 923,198
Employee benefits 76,902 87,599 88,343
Environmental remediation liabilities 144 6,198 6,313
Deferred tax liabilities 1,092 1,092 1,092
Derivative liabilities 1,803 8,442 21,527
Other noncurrent liabilities 29,632 32,830 39,058
Total Noncurrent Liabilities 904,211 1,058,455 1,079,531
Total Liabilities 1,453,050 1,626,985 1,599,132

Equity
Common stock ($1.00 par value, shares authorized:
50,000; issued and outstanding: 1) 0 0 0
Additional paid-in capital 705,000 705,000 705,000
Deficit -222,477 -112,381 -70,869
Reserves 18,661 -199 -24,071
Equity attributable to owners of the Company 501,184 592,420 610,060
Non-controlling interests 1,694 1,346 552
Total Equity 502,878 593,766 610,612
Total Equity and Liabilities 1,955,928 2,220,751 2,209,744
 Del Monte Foods, Inc.
Consolidated Income Statement
(In thousands of US dollars)
2018 2017 2016
Net sales 1,654,226 1,696,457 1,778,002
Cost of sales -1,405,393 -1,404,241 -1,454,006
Gross profit 248,833 292,216 323,996
Distribution and selling expenses -136,807 -116,428 -123,306
General and administrative expenses -153,454 -145,618 -133,509
Transaction fees 0 0 -504
Gain on bargain purchase 0 0 0
Other income (expenses) - net 13,498 2,293 34,023
Income (loss) from operations -27,930 32,463 100,700
Net finance expense -79,421 -80,822 -72,553
Profit (Loss) before taxation -107,351 -48,359 28,147

Income tax benefit (expense) – current -730 -1,005 -1,544

Income tax benefit (expense) – deferred -2,015 7,852 3,591
Profit (Loss) -110,096 -41,512 30,194
 Del Monte Foods, Inc.
Consolidated Statement of Cash Flows
(In thousands of US dollars)
2016 2017 2018
Cash flows from operating activities
Profit (loss) 30,194 -41,512 -110,096
Adjustments for:
Amortisation of intangible assets 9,309 9,330 7,766
Depreciation of property, plant and equipment 47,662 37,949 47,250
Impairment losses on property, plant and equipment 5,000 0 24,672
(Gain) loss on disposal of assets 0 0 -11,281
Gain on debt repurchase 0 0 -35,646
Loss on disposal of property, plant and equipment 1,079 793 0
Inventory write-downs 23,951 22,923 24,502
Share based compensation expense 552 794 348
Defined benefit plan amendment -40,716 0 0
Finance expense 72,553 80,822 79,421
Deferred income tax expense (benefit) -3,591 -7,852 2,015
Cash flow hedges:
Commodity hedge 1,887 -1,070 -123
Currency hedge 1,003 0 0
Interest rate swaps 2,302 1,903 970
Bargain purchase on acquisition of Sager Creek 0 0 0
Deconsolidation of a subsidiary 0 0 0
151,185 104,080 29,798
Changes in:
Other assets -7,260 5,946 1,424
Inventories -142,098 -59,548 148,731
Trade and other receivables 27,789 12,088 16,848
Trade and other payables -59,293 109,951 15,045
Deferred revenue 0 13,579
Other liabilities 12,850 12,835 8,416
Cash generated from (absorbed by) operations -16,827 185,352 233,841
Income taxes paid -1,177 -1,416 -2,090
Net cash flows from/(used in) operating activities -18,004 183,936 231,751
Cash flows from investing activities
Proceeds from disposal of property, plant and equipment 3,719 2,109 41,167
Purchase of property, plant and equipment -42,823 -44,591 -30,937
Acquisition of Consumer Food Business, net of cash acquired 0 0 0
Purchase of Sager Creek 0 0 0
Net cash flows used in investing activities -39,104 -42,482 10,230

Cash flows from financing activities

Interest paid -60,667 -74,962 -74,759
Proceeds from short-term borrowings 782,900 166,200 287,071
Proceeds from long-term debt 0 0 0
Payments of debt related costs -1,029 0 -4,515
Payments on short-term borrowings -656,458 -223,642 -445,071
Payments on long-term borrowings -7,100 -7,100 -5,325
Proceeds from issuance of share capital 0 0 0
Net cash flows from/(used in) financing activities 57,646 -139,504 -242,599
Net increase/(decrease) in cash 538 1,950 -618
Cash at beginning of year/period 564 1,186 3,114
Effect of exchange rate changes on balances held in foreign currency 84 -22 3
Cash at end of year/period 1,186 3,114 2,499
 Del Monte Foods, Inc.
Comparative Statement of Financial Position (Horizontal Analysis)
(In thousands of US dollars, except share and per share data)
2018 2017 Difference Percentage
ASSETS
Current Assets
Cash 2,499 3,114 -615 -19.75%
Inventories 643,138 819,249 -176,111 -21.50%
Trade and other receivables 87,728 87,673 55 0.06%
Prepaid and other current assets 14,606 20,117 -5,511 -27.39%
Assets held for sale 5,504 0 5,504 0.00%
Total Current Assets 753,475 930,153 -176,678 -18.99%

Noncurrent Assets
Property, plant and equipment 406,878 464,701 -57,823 -12.44%
Intangible assets and goodwill 701,765 728,121 -26,356 -3.62%
Deferred tax assets 78,887 92,219 -13,332 -14.46%
Net employee benefits 0 0 0 0.00%
Other non-current assets 14,923 5,557 9,366 168.54%
Total Noncurrent Assets 1,202,453 1,290,598 -88,145 -6.83%
Total Assets 1,955,928 2,220,751 -264,823 -11.92%
EQUITY AND LIABILITIES 2018 2017 Difference Percentage
Current Liabilities
Trade and other payables 147,492 160,485 -12,993 -8.10%
Derivative liabilities 3,260 9,531 -6,271 -65.80%
Deferred income 13,926 0 13,926 0.00%
Intercompany payables 336,023 207,018 129,005 62.32%
Current tax liabilities 243 228 15 6.58%
Employee benefits 37,645 22,154 15,491 69.92%
Loans and borrowings 10,250 169,114 -158,864 -93.94%
Total Current Liabilities 548,839 568,530 -19,691 -3.46%

Noncurrent Liabilities
Term loans 794,638 922,294 -127,656 -13.84%
Employee benefits 76,902 87,599 -10,697 -12.21%
Environmental remediation liabilities 144 6,198 -6,054 -97.68%
Deferred tax liabilities 1,092 1,092 0 0.00%
Derivative liabilities 1,803 8,442 -6,639 -78.64%
Other noncurrent liabilities 29,632 32,830 -3,198 -9.74%
Total Noncurrent Liabilities 904,211 1,058,455 -154,244 -14.57%
Total Liabilities 1,453,050 1,626,985 -173,935 -10.69%

Equity
Common stock ($1.00 par value, shares authorized:
50,000; issued and outstanding: 1) 0 0
Additional paid-in capital 705,000 705,000 0 0.00%
Deficit -222,477 -112,381 -110,096 97.97%
Reserves 18,661 -199 18,860 -9477.39%
Equity attributable to owners of the Company 501,184 592,420 -91,236 -15.40%
Non-controlling interests 1,694 1,346 348 25.85%
Total Equity 502,878 593,766 -90,888 -15.31%
Total Equity and Liabilities 1,955,928 2,220,751 -264,823 -11.92%
 Del Monte Foods, Inc.
Comparative Statement of Financial Position (Horizontal Analysis)
(In thousands of US dollars, except share and per share data)
2017 2016 Difference Percentage
ASSETS
Current Assets
Cash 3,114 1,186 1,928 162.56%
Inventories 819,249 770,388 48,861 6.34%
Trade and other receivables 87,673 108,393 -20,720 -19.12%
Prepaid and other current assets 20,117 19,860 257 1.29%
Assets held for sale 0 1,950 -1,950 -100.00%
Total Current Assets 930,153 901,777 28,376 3.15%

Noncurrent Assets
Property, plant and equipment 464,701 466,044 -1,343 -0.29%
Intangible assets and goodwill 728,121 737,451 -9,330 -1.27%
Deferred tax assets 92,219 97,082 -4,863 -5.01%
Net employee benefits 0 0 0 0.00%
Other non-current assets 5,557 7,390 -1,833 -24.80%
Total Noncurrent Assets 1,290,598 1,307,967 -17,369 -1.33%
Total Assets 2,220,751 2,209,744 11,007 0.50%
EQUITY AND LIABILITIES 2017 2016 Difference Percentage
Current Liabilities
Trade and other payables 160,485 168,981 -8,496 -5.03%
Derivative liabilities 9,531 15,218 -5,687 -37.37%
Deferred income 0 0 0 0.00%
Intercompany payables 207,018 75,650 131,368 173.65%
Current tax liabilities 228 222 6 2.70%
Employee benefits 22,154 33,651 -11,497 -34.17%
Loans and borrowings 169,114 225,879 -56,765 -25.13%
Total Current Liabilities 568,530 519,601 48,929 9.42%

Noncurrent Liabilities
Term loans 922,294 923,198 -904 -0.10%
Employee benefits 87,599 88,343 -744 -0.84%
Environmental remediation liabilities 6,198 6,313 -115 -1.82%
Deferred tax liabilities 1,092 1,092 0 0.00%
Derivative liabilities 8,442 21,527 -13,085 -60.78%
Other noncurrent liabilities 32,830 39,058 -6,228 -15.95%
Total Noncurrent Liabilities 1,058,455 1,079,531 -21,076 -1.95%
Total Liabilities 1,626,985 1,599,132 27,853 1.74%

Equity
Common stock ($1.00 par value, shares
authorized: 50,000; issued and outstanding: 1) 0 0 0 0.00%
Additional paid-in capital 705,000 705,000 0 0.00%
Deficit -112,381 -70,869 -41,512 58.58%
Reserves -199 -24,071 23,872 -99.17%
Equity attributable to owners of the Company 592,420 610,060 -17,640 -2.89%
Non-controlling interests 1,346 552 794 143.84%
Total Equity 593,766 610,612 -16,846 -2.76%
Total Equity and Liabilities 2,220,751 2,209,744 11,007 0.50%
 Del Monte Foods, Inc.
Comparative Statement of Financial Position (Vertical Analysis)
(In thousands of US dollars, except share and per share data)
2018 2017 2016
ASSETS Amount Percentage Amount Percentage Amount Percentage
Current Assets
Cash 2,499 0.13% 3,114 0.14% 1,186 0.05%
Inventories 643,138 32.88% 819,249 36.89% 770,388 34.86%
Trade and other receivables 87,728 4.49% 87,673 3.95% 108,393 4.91%
Prepaid and other current assets 14,606 0.75% 20,117 0.91% 19,860 0.90%
Assets held for sale 5,504 0.28% 0 0.00% 1,950 0.09%
Total Current Assets 753,475 38.52% 930,153 41.88% 901,777 40.81%

Noncurrent Assets
Property, plant and equipment 406,878 20.80% 464,701 20.93% 466,044 21.09%
Intangible assets and goodwill 701,765 35.88% 728,121 32.79% 737,451 33.37%
Deferred tax assets 78,887 4.03% 92,219 4.15% 97,082 4.39%
Net employee benefits 0 0.00% 0 0.00% 0 0.00%
Other non-current assets 14,923 0.76% 5,557 0.25% 7,390 0.33%
Total Noncurrent Assets 1,202,453 61.48% 1,290,598 58.12% 1,307,967 59.19%
Total Assets 1,955,928 100.00% 2,220,751 100.00% 2,209,744 100.00%
 2018 2017 2016
EQUITY AND LIABILITIES Amount Percentage Amount Percentage Amount Percentage
Current Liabilities
Trade and other payables 147,492 7.54% 160,485 7.23% 168,981 7.65%
Derivative liabilities 3,260 0.17% 9,531 0.43% 15,218 0.69%
Deferred income 13,926 0.71% 0 0.00% 0 0.00%
Intercompany payables 336,023 17.18% 207,018 9.32% 75,650 3.42%
Current tax liabilities 243 0.01% 228 0.01% 222 0.01%
Employee benefits 37,645 1.92% 22,154 1.00% 33,651 1.52%
Loans and borrowings 10,250 0.52% 169,114 7.62% 225,879 10.22%
Total Current Liabilities 548,839 28.06% 568,530 25.60% 519,601 23.51%

Noncurrent Liabilities
Term loans 794,638 40.63% 922,294 41.53% 923,198 41.78%
Employee benefits 76,902 3.93% 87,599 3.94% 88,343 4.00%
Environmental remediation liabilities 144 0.01% 6,198 0.28% 6,313 0.29%
Deferred tax liabilities 1,092 0.06% 1,092 0.05% 1,092 0.05%
Derivative liabilities 1,803 0.09% 8,442 0.38% 21,527 0.97%
Other noncurrent liabilities 29,632 1.51% 32,830 1.48% 39,058 1.77%
Total Noncurrent Liabilities 904,211 46.23% 1,058,455 47.66% 1,079,531 48.85%
Total Liabilities 1,453,050 74.29% 1,626,985 73.26% 1,599,132 72.37%

Equity
Common stock ($1.00 par value, shares
authorized: 50,000; issued and outstanding: 1) 0 0.00% 0 0.00% 0 0.00%
Additional paid-in capital 705,000 36.04% 705,000 31.75% 705,000 31.90%
Deficit -222,477 -11.37% -112,381 -5.06% -70,869 -3.21%
Reserves 18,661 0.95% -199 -0.01% -24,071 -1.09%
Equity attributable to owners of the Company 501,184 25.62% 592,420 26.68% 610,060 27.61%
Non-controlling interests 1,694 0.09% 1,346 0.06% 552 0.02%
Total Equity 502,878 25.71% 593,766 26.74% 610,612 27.63%
Total Equity and Liabilities 1,955,928 100.00% 2,220,751 100.00% 2,209,744 100.00%
 Del Monte Foods, Inc.
Comparative Income Statement (Horizontal Analysis)
(In thousands of US dollars)
2018 2017 DIFFERENCE PERCENTAGE
Net sales 1,654,226 1,696,457 -42,231 -2.49%
Cost of sales -1,405,393 -1,404,241 -1,152 0.08%
Gross profit 248,833 292,216 -43,383 -14.85%
Distribution and selling expenses -136,807 -116,428 -20,379 17.50%
General and administrative expenses -153,454 -145,618 -7,836 5.38%
Transaction fees 0 0 0 0.00%
Gain on bargain purchase 0 0 0 0.00%
Other income (expenses) - net 13,498 2,293 11,205 488.66%
Income (loss) from operations -27,930 32,463 -60,393 -186.04%
Net finance expense -79,421 -80,822 1,401 -1.73%
Profit (Loss) before taxation -107,351 -48,359 -58,992 121.99%

Income tax benefit (expense) – current -730 -1,005 275 -27.36%

Income tax benefit (expense) – deferred -2,015 7,852 -9,867 -125.66%
Profit (Loss) -110,096 -41,512 -68,584 165.21%
 Del Monte Foods, Inc.
Comparative Income Statement (Horizontal Analysis)
(In thousands of US dollars)
2017 2016 DIFFERENCE PERCENTAGE
Net sales 1,696,457 1,778,002 -81,545 -4.59%
Cost of sales -1,404,241 -1,454,006 49,765 -3.42%
Gross profit 292,216 323,996 -31,780 -9.81%
Distribution and selling expenses -116,428 -123,306 6,878 -5.58%
General and administrative expenses -145,618 -133,509 -12,109 9.07%
Transaction fees 0 -504 504 -100.00%
Gain on bargain purchase 0 0 0 0.00%
Other income (expenses) - net 2,293 34,023 -31,730 -93.26%
Income (loss) from operations 32,463 100,700 -68,237 -67.76%
Net finance expense -80,822 -72,553 -8,269 11.40%
Profit (Loss) before taxation -48,359 28,147 -76,506 -271.81%

Income tax benefit (expense) – current -1,005 -1,544 539 -34.91%

Income tax benefit (expense) – deferred 7,852 3,591 4,261 118.66%
Profit (Loss) -41,512 30,194 -71,706 -237.48%
 Del Monte Foods, Inc.
Comparative Income Statement (Vertical Analysis)
(In thousands of US dollars)
2018 RATIO 2017 RATIO 2016 RATIO
Net sales 1,654,226 100.00% 1,696,457 100.00% 1,778,002 100.00%
Cost of sales -1,405,393 -84.96% -1,404,241 -82.77% -1,454,006 -81.78%
Gross profit 248,833 15.04% 292,216 17.23% 323,996 18.22%
Distribution and selling expenses -136,807 -8.27% -116,428 -6.86% -123,306 -6.94%
General and administrative expenses -153,454 -9.28% -145,618 -8.58% -133,509 -7.51%
Transaction fees 0 0.00% 0 0.00% -504 -0.03%
Gain on bargain purchase 0 0.00% 0 0.00% 0 0.00%
Other income (expenses) - net 13,498 0.82% 2,293 0.14% 34,023 1.91%
Income (loss) from operations -27,930 -1.69% 32,463 1.91% 100,700 5.66%
Net finance expense -79,421 -4.80% -80,822 -4.76% -72,553 -4.08%
Profit (Loss) before taxation -107,351 -6.49% -48,359 -2.85% 28,147 1.58%

Income tax benefit (expense) – current -730 -0.04% -1,005 -0.06% -1,544 -0.09%
Income tax benefit (expense) – deferred -2,015 -0.12% 7,852 0.46% 3,591 0.20%
Profit (Loss) -110,096 -6.66% -41,512 -2.45% 30,194 1.70%
Earnings Performance Analysis (Profitability)

Gross Profit
Gross Profit Margin 15.04 %
Net Sales

Net Income after tax

Rate Earned on Average Total Assets (ROA) -5.27 %
Average Total Assets

Net Income after tax

Rate Earned on Average Total Equity (ROE) -20.08 %
Average Total Equity

Net Income after tax

Rate Earned on Net Sales -6.66 %
Net Sales
Efficiency Analysis (Liquidity)

Net Sales
Accounts Receivable Turnover Ratio 18.86 times
Average Accounts Receivable

Days in a year
Average Days for Payment 19.35 days
AR Turnover ratio

Cost of goods sold

Inventory Turnover Ratio 1.92 times
Average Inventory

Days in a year
Average number of Days Sales in Inventory 190.10 days
InventortyTurnover ratio
Short-Term Financial Strength Analysis

Working Capital Current Assets-Current Liabilities 204,636.00

Current Assets
Current Ratio 1.37 times
Current Liabilities

Cash + Accounts Receivable

Acid-Test Ratio 0.16 times
Current Liabilities
Long-Term Financial Strength Analysis

Total Liabilities
Debt Ratio 74.29 %
Total Assets

Total Equity
Equity Ratio 25.71 %
Total Assets
VISION
MISSION
 HISTORY
San Miguel Corporation (SMC) is one
of the Philippines’ largest and most
diversified conglomerates, generating
about 5.2%* of the country’s GDP
through its highly integrated
operations in food and beverages,
packaging, fuel and oil, power, and
infrastructure.
1890
La Fabrica de Cerveza
de San Miguel was
established.
1914
San Miguel Beer was
being exported from
its headquarters in
Manila to Shanghai,
Hong Kong and Guam.
1948
A pioneer in Asia,
San Miguel
established a
brewery in Hong
Kong, the first local
brewer in the crown
colony.
TODAY
San Miguel Beer–the
Company’s flagship
product–is one of
the largest selling
beers and among the
top 10 beer brands
in the world.
 SAN MIGUEL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2018, 2017 AND 2016
(In Millions)

201
8 201
7 201
6
ASSETS
Current Assets
Cash and cash equivalents 203,153 1
80,758 258,606
Trade and other receivables - net 114,525 100,727 1
29,238
Inventories 83,241 64,148 85,846
Current portion of biological assets - net 3,1
22 3,319 3,320
Prepaid expenses and other current assets 75,202 73,659 52,886
479,243 422,611 529,896
Assets held for sale 184 0 554
Total Current Assets 479,427 422,611 530,450

Noncurrent Assets
Investments and advances - net 32,512 26,929 46,651
Available-for-sale financial assets 42,068 41,546 41,459
Property, plant and equipment - net 504,71 1 497,352 455,323
Investment property - net 7,295 4,746 3,643
Biological assets - net of current portion 2,263 2,177 1,973
Goodwill - net 58,11
3 58,603 41 ,211
Other intangible assets - net 125,165 139,969 45,1 14
Deferred tax assets 20,267 16,441 14,651
Other noncurrent assets - net 35,003 35,648 37,01 4
Total Noncurrent Assets 827,397 823,411 687,039
Total Assets 1
,306,824 1
,246,022 1
,21
7,489
LIABILITIES AND EQUITY
Current Liabilities
Loans payable 1
89,277 1
46,859 1
80,059
Accounts payable and accrued expenses 121,602 102,836 121,844
Finance lease liabilities - current portion 16,392 1
6,567 1
6,21 9
Income and other taxes payable 16,967 1
3,907 13,303
Dividends payable 3,992 1,996 3,1
34
Current maturities of long-term debt - net of debt issue costs 31,378 37,554 19,852
Total Current Liabilities 379,608 319,719 354,41 1

Noncurrent Liabilities
Long-term debt - net of current maturities and debt issue costs 297,222 330,823 283,136
Deferred tax liabilities 17,229 15,329 7,820
Finance lease liabilities - net of current portion 153,848 162,713 170,11
1
Other noncurrent liabilities 22,136 32,561 12,091
Total Noncurrent Liabilities 490,435 541 ,426 473,158

Equity
Equity Attributable to Equity Holders of the Parent Company
Capital stock - common 16,425 16,417 16,41 5
Capital stock - preferred 10,1
87 10,187 10,187
Additional paid-in capital 1
77,641 1
77,871 1
78,1 01
Equity reserves -7,700 -3,619 3,419
Retained earnings:
Appropriated 56,906 48,927 52,088
Unappropriated 135,984 127,855 120,571
Treasury stock -109,501 -139,501 -1
39,881
279,942 238,1 37 240,900
Non-controlling Interests 156,839 146,740 149,020
Total Equity 436,781 384,877 389,920
Total Liabilities and Equity 1
,306,824 1
,246,022 1
,217,489
 SAN MIGUEL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
(In Millions)

2018 2017 2016

SALES 685,314 672,243 772,243
COST OF SALES 514,021 532,067 660,061
GROSS PROFIT 171,293 140,176 112,182
SELLING AND ADMINISTRATIVE EXPENSES -71,639 -59,627 -55,908
INTEREST EXPENSE AND OTHER FINANCING CHARGES -34,803 -32,518 -29,708
INTEREST INCOME 3,693 4,286 3,977
EQUITY IN NET EARNINGS (LOSSES) OF ASSOCIATES AND JOINT VENTURES 203 -120 2,091
GAIN (LOSS) ON SALE OF INVESTMENTS AND PROPERTY AND EQUIPMENT 154 -79 777
OTHER INCOME (CHARGES) - Net -11,426 -6,506 6,185
INCOME BEFORE INCOME TAX 57,475 45,612 39,596
INCOME TAX EXPENSE 17,053 16,781 10,149
INCOME FROM CONTINUING OPERATIONS 40,422 28,831 29,447
INCOME (LOSS) AFTER INCOME TAX FROM DISCONTINUED OPERATIONS 11,818 162 -869
NET INCOME 52,240 28,993 28,578

Attributable to:
Equity holders of the Parent Company 29,289 12,448 15,137
Non-controlling interests 22,951 16,545 13,441
NET INCOME 52,240 28,993 28,578
 SAN MIGUEL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
(In Millions)

2018 2017 2016

CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax from continuing operations 57,475 45,612 39,596
Income (loss) before income tax from discontinued operations 12,765 325 -734
Income before income tax 70,240 45,937 38,862
Adjustments for:
Depreciation, amortization and others - net 50,549 35,912 25,135
Interest expense and other financing charges 34,809 32,521 29,710
Interest income -3,707 -4,315 -4,012
Equity in net losses (earnings) of associates and joint ventures -203 386 -1,701
Gain from disposal of discontinued operations -13,572 0 0
Loss (gain) on sale of investments and property and equipment -154 81 -777
Operating income before working capital changes 137,962 110,522 87,217
Changes in noncash current assets, certain current liabilities and others -14,661 -6,147 -14,852
Cash generated from operations 123,301 104,375 72,365
Interest and other financing charges paid -24,647 -24,409 -21,735
Income taxes paid -19,461 -14,525 -11,287
Net cash flows provided by operating activities 79,193 65,441 39,343
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of subsidiaries, net of cash and cash equivalents acquired -1,905 -7,633 -302
Cash and cash equivalents acquired from business combination, net of cash paid 0 14,415 0
Additions to investments and advances and available-for-sale financial assets -8,038 -3,544 -6,314
Additions to property, plant and equipment -40,649 -59,973 -38,951
Increase in other noncurrent assets and others -15,515 -8,833 -7,359
Proceeds from sale of investments and property and equipment 1,114 2,607 66,945
Proceeds from disposal of discontinued operations, net of cash and cash equivalents disposed of 37,175 0 0
Interest received 3,480 4,136 3,481
Dividends received from associates and available-for-sale financial assets 1,081 96 634
Net cash flows provided by (used in) investing activities -23,257 -58,729 18134

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from:
Short-term borrowings 667,802 760,238 827,018
Long-term borrowings 98,130 77,070 47,591
Payments of:
Short-term borrowings -625,642 -794,373 -789,191
Long-term borrowings -150,455 -73,092 -54,309
Proceeds from reissuance of treasury shares 29,707 54,201 0
Net proceeds from issuance of preferred shares and undated subordinated capital securities of subsidiaries 0 28,708 23,008
Proceeds from issuance of capital stock 71 27 7
Redemption of Series “2A” preferred shares 0 -54,076 0
Redemption of preferred shares of subsidiaries 0 -40,642 0
Payments of finance lease liabilities -23,907 -22,296 -20,152
Cash dividends paid -8,278 -9,802 -9,702
Cash dividends and distributions paid to non-controlling shareholders -16,060 -13,847 -14,571
Increase (decrease) in non-controlling interests -5,515 -369 205
Net cash flows provided by (used in) financing activities -34,147 -88,253 9,904
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 606 3,693 -388
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 22,395 -77,848 66,993
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 180,758 258,606 191,613
CASH AND CASH EQUIVALENTS AT END OF YEAR 203,153 180,758 258,606
 SAN MIGUEL CORPORATION AND SUBSIDIARIES
COMPARATIVE INCOME STATEMENT (Horizontal Analysis)
DECEMBER 31, 2018 and 2017
(In Millions)

2018 2017 Difference Ratio

SALES 685,314 672,243 13,071 0.019444
COST OF SALES 514,021 532,067 -18,046 -0.03392
GROSS PROFIT 171,293 140,176 31,117 0.221985
SELLING AND ADMINISTRATIVE EXPENSES -71,639 -59,627 -12,012 0.201452
INTEREST EXPENSE AND OTHER FINANCING CHARGES -34,803 -32,518 -2,285 0.070269
INTEREST INCOME 3,693 4,286 -593 -0.13836
EQUITY IN NET EARNINGS (LOSSES) OF ASSOCIATES AND JOINT VENTURES 203 -120 323 -2.69167
GAIN (LOSS) ON SALE OF INVESTMENTS AND PROPERTY AND EQUIPMENT 154 -79 233 -2.94937
OTHER INCOME (CHARGES) - Net -11,426 -6,506 -4,920 0.756225
INCOME BEFORE INCOME TAX 57,475 45,612 11,863 0.260085
INCOME TAX EXPENSE 17,053 16,781 272 0.016209
INCOME FROM CONTINUING OPERATIONS 40,422 28,831 11,591 0.402033
INCOME (LOSS) AFTER INCOME TAX FROM DISCONTINUED OPERATIONS 11,818 162 11,656 71.95062
NET INCOME 52,240 28,993 23,247 0.801814

Attributable to:
Equity holders of the Parent Company 29,289 12,448 16,841 1.352908
Non-controlling interests 22,951 16,545 6,406 0.387186
NET INCOME 52,240 28,993 23,247 0.801814
 SAN MIGUEL CORPORATION AND SUBSIDIARIES
COMPARATIVE INCOME STATEMENT (Horizontal Analysis)
DECEMBER 31, 2017 and 2016
(In Millions)

2017 2016 Difference Ratio

SALES 672,243 772,243 -100,000 -0.12949
COST OF SALES 532,067 660,061 -127,994 -0.19391
GROSS PROFIT 140,176 112,182 27,994 0.249541
SELLING AND ADMINISTRATIVE EXPENSES -59,627 -55,908 -3,719 0.06652
INTEREST EXPENSE AND OTHER FINANCING CHARGES -32,518 -29,708 -2,810 0.094587
INTEREST INCOME 4,286 3,977 309 0.077697
EQUITY IN NET EARNINGS (LOSSES) OF ASSOCIATES AND JOINT VENTURES -120 2,091 -2,211 -1.05739
GAIN (LOSS) ON SALE OF INVESTMENTS AND PROPERTY AND EQUIPMENT -79 777 -856 -1.10167
OTHER INCOME (CHARGES) - Net -6,506 6,185 -12,691 -2.0519
INCOME BEFORE INCOME TAX 45,612 39,596 6,016 0.151935
INCOME TAX EXPENSE 16,781 10,149 6,632 0.653463
INCOME FROM CONTINUING OPERATIONS 28,831 29,447 -616 -0.02092
INCOME (LOSS) AFTER INCOME TAX FROM DISCONTINUED OPERATIONS 162 -869 1,031 -1.18642
NET INCOME 28,993 28,578 415 0.014522

Attributable to:
Equity holders of the Parent Company 12,448 15,137 -2,689 -0.17764
Non-controlling interests 16,545 13,441 3,104 0.230935
NET INCOME 28,993 28,578 415 0.014522
 SAN MIGUEL CORPORATION AND SUBSIDIARIES
COMPARATIVE STATEMENT OF FINANCIAL POSITION (Horizontal Analysis)
DECEMBER 31, 2018 AND 2017
(In Millions)

2018 2017 Difference Ratio

ASSETS
Current Assets
Cash and cash equivalents 203,153 180,758 22,395 0.123895
Trade and other receivables - net 114,525 100,727 13,798 0.136984
Inventories 83,241 64,148 19,093 0.29764
Current portion of biological assets - net 3,122 3,319 -197 -0.05936
Prepaid expenses and other current assets 75,202 73,659 1,543 0.020948
479,243 422,611 56,632 0.134005
Assets held for sale 184 0 184
Total Current Assets 479,427 422,611 56,816 0.13444

Noncurrent Assets
Investments and advances - net 32,512 26,929 5,583 0.207323
Available-for-sale financial assets 42,068 41,546 522 0.012564
Property, plant and equipment - net 504,711 497,352 7,359 0.014796
Investment property - net 7,295 4,746 2,549 0.537084
Biological assets - net of current portion 2,263 2,177 86 0.039504
Goodwill - net 58,113 58,603 -490 -0.00836
Other intangible assets - net 125,165 139,969 -14,804 -0.10577
Deferred tax assets 20,267 16,441 3,826 0.232711
Other noncurrent assets - net 35,003 35,648 -645 -0.01809
Total Noncurrent Assets 827,397 823,411 3,986 0.004841
Total Assets 1,306,824 1,246,022 60,802 0.048797
LIABILITIES AND EQUITY
Current Liabilities
Loans payable 1
89,277 1
46,859 42,41 8 0.288835
Accounts payable and accrued expenses 121,602 102,836 1
8,766 0.182485
Finance lease liabilities - current portion 16,392 1
6,567 -1
75 -0.01056
Income and other taxes payable 16,967 1
3,907 3,060 0.220033
Dividends payable 3,992 1,996 1,996 1
Current maturities of long-term debt - net of debt issue costs 31,378 37,554 -6,176 -0.16446
Total Current Liabilities 379,608 319,719 59,889 0.187318

Noncurrent Liabilities
Long-term debt - net of current maturities and debt issue costs 297,222 330,823 -33,601 -0.1
0157
Deferred tax liabilities 17,229 15,329 1
,900 0.1 23948
Finance lease liabilities - net of current portion 153,848 162,713 -8,865 -0.05448
Other noncurrent liabilities 22,136 32,561 -10,425 -0.32017
Total Noncurrent Liabilities 490,435 541 ,426 -50,991 -0.0941 8

Equity
Equity Attributable to Equity Holders of the Parent Company
Capital stock - common 16,425 16,417 8 0.000487
Capital stock - preferred 10,1
87 10,187 0 0
Additional paid-in capital 1
77,641 1
77,871 -230 -0.00129
Equity reserves -7,700 -3,619 -4,081 1
.12766
Retained earnings:
Appropriated 56,906 48,927 7,979 0.1
6308
Unappropriated 135,984 127,855 8,129 0.06358
Treasury stock -109,501 -139,501 30,000 -0.21505
279,942 238,137 41 ,805 0.17555
Non-controlling Interests 156,839 146,740 10,099 0.068822
Total Equity 436,781 384,877 51,904 0.134859
Total Liabilities and Equity 1
,306,824 1
,246,022 60,802 0.048797
 SAN MIGUEL CORPORATION AND SUBSIDIARIES
COMPARATIVE STATEMENT OF FINANCIAL POSITION (Horizontal Analysis)
DECEMBER 31, 2017 AND 2016
(In Millions)

2017 2016 Difference Ratio

ASSETS
Current Assets
Cash and cash equivalents 180,758 258,606 -77,848 -0.30103
Trade and other receivables - net 100,727 129,238 -28,511 -0.22061
Inventories 64,148 85,846 -21,698 -0.25275
Current portion of biological assets - net 3,319 3,320 -1 -0.0003
Prepaid expenses and other current assets 73,659 52,886 20,773 0.392788
422,611 529,896 -107,285 -0.20246
Assets held for sale 0 554 -554 -1
Total Current Assets 422,611 530,450 -107,839 -0.2033

Noncurrent Assets
Investments and advances - net 26,929 46,651 -19,722 -0.42276
Available-for-sale financial assets 41,546 41,459 87 0.002098
Property, plant and equipment - net 497,352 455,323 42,029 0.092306
Investment property - net 4,746 3,643 1,103 0.302772
Biological assets - net of current portion 2,177 1,973 204 0.103396
Goodwill - net 58,603 41,211 17,392 0.422023
Other intangible assets - net 139,969 45,114 94,855 2.102562
Deferred tax assets 16,441 14,651 1,790 0.122176
Other noncurrent assets - net 35,648 37,014 -1,366 -0.0369
Total Noncurrent Assets 823,411 687,039 136,372 0.198492
Total Assets 1,246,022 1,217,489 28,533 0.023436
LIABILITIES AND EQUITY
Current Liabilities
Loans payable 1
46,859 1
80,059 -33,200 -0.1
8438
Accounts payable and accrued expenses 102,836 121,844 -19,008 -0.1
56
Finance lease liabilities - current portion 1
6,567 16,219 348 0.021456
Income and other taxes payable 1
3,907 1
3,303 604 0.045403
Dividends payable 1,996 3,1
34 -1
,138 -0.36311
Current maturities of long-term debt - net of debt issue costs 37,554 19,852 1
7,702 0.891 699
Total Current Liabilities 319,719 354,41 1 -34,692 -0.09789

Noncurrent Liabilities
Long-term debt - net of current maturities and debt issue costs 330,823 283,136 47,687 0.168424
Deferred tax liabilities 15,329 7,820 7,509 0.96023
Finance lease liabilities - net of current portion 162,713 170,11
1 -7,398 -0.04349
Other noncurrent liabilities 32,561 12,091 20,470 1.692995
Total Noncurrent Liabilities 541 ,426 473,158 68,268 0.1 44282

Equity
Equity Attributable to Equity Holders of the Parent Company
Capital stock - common 16,417 16,41 5 2 0.000122
Capital stock - preferred 10,187 10,187 0 0
Additional paid-in capital 1
77,871 1
78,1 01 -230 -0.00129
Equity reserves -3,619 3,419 -7,038 -2.0585
Retained earnings:
Appropriated 48,927 52,088 -3,1
61 -0.06069
Unappropriated 127,855 120,571 7,284 0.06041 3
Treasury stock -139,501 -1
39,881 380 -0.00272
238,137 240,900 -2,763 -0.011
47
Non-controlling Interests 146,740 149,020 -2,280 -0.01
53
Total Equity 384,877 389,920 -5,043 -0.01293
Total Liabilities and Equity 1
,246,022 1
,217,489 28,533 0.023436
 SAN MIGUEL CORPORATION AND SUBSIDIARIES
COMPARATIVE INCOME STATEMENT (Vertical Analysis)
DECEMBER 31, 2016, 2017, and 2018
(In Millions)

Vertical Analysis Vertical Analysis Vertical Analysis

2018 Ratio 2017 Ratio 2016 Ratio
SALES 685,314 1 672,243 1 772,243 1
COST OF SALES 514,021 0.750052 532,067 0.79148 660,061 0.854732
GROSS PROFIT 171,293 0.249948 140,176 0.20852 112,182 0.145268
SELLING AND ADMINISTRATIVE EXPENSES -71,639 -0.10453 -59,627 -0.0887 -55,908 -0.0724
INTEREST EXPENSE AND OTHER FINANCING CHARGES -34,803 -0.05078 -32,518 -0.04837 -29,708 -0.03847
INTEREST INCOME 3,693 0.005389 4,286 0.006376 3,977 0.00515
EQUITY IN NET EARNINGS (LOSSES) OF ASSOCIATES AND JOINT VENTURES 203 0.000296 -120 -0.00018 2,091 0.002708
GAIN (LOSS) ON SALE OF INVESTMENTS AND PROPERTY AND EQUIPMENT 154 0.000225 -79 -0.00012 777 0.001006
OTHER INCOME (CHARGES) - Net -11,426 -0.01667 -6,506 -0.00968 6,185 0.008009
INCOME BEFORE INCOME TAX 57,475 0.083867 45,612 0.06785 39,596 0.051274
INCOME TAX EXPENSE 17,053 0.024883 16,781 0.024963 10,149 0.013142
INCOME FROM CONTINUING OPERATIONS 40,422 0.058983 28,831 0.042888 29,447 0.038132
INCOME (LOSS) AFTER INCOME TAX FROM DISCONTINUED OPERATIONS 11,818 0.017245 162 0.000241 -869 -0.00113
NET INCOME 52,240 0.076228 28,993 0.043129 28,578 0.037006

Attributable to:
Equity holders of the Parent Company 29,289 0.042738 12,448 0.018517 15,137 0.019601
Non-controlling interests 22,951 0.03349 16,545 0.024612 13,441 0.017405
NET INCOME 52,240 0.076228 28,993 0.043129 28,578 0.037006
 SAN MIGUEL CORPORATION AND SUBSIDIARIES
COMPARATIVE INCOME STATEMENT (Vertical Analysis)
DECEMBER 31, 2016, 2017, and 2018
(In Millions)

Vertical Analysis Vertical Analysis Vertical Analysis

2018 Ratio 2017 Ratio 2016 Ratio
ASSETS
Current Assets
Cash and cash equivalents 203,153 0.155456 180,758 0.145068 258,606 0.212409
Trade and other receivables - net 114,525 0.087636 100,727 0.080839 129,238 0.106151
Inventories 83,241 0.063697 64,148 0.051482 85,846 0.070511
Current portion of biological assets - net 3,122 0.002389 3,319 0.002664 3,320 0.002727
Prepaid expenses and other current assets 75,202 0.057546 73,659 0.059115 52,886 0.043439
479,243 0.366723 422,611 0.339168 529,896 0.435237
Assets held for sale 184 0.000141 0 0 554 0.000455
Total Current Assets 479,427 0.366864 422,611 0.339168 530,450 0.435692

Noncurrent Assets
Investments and advances - net 32,512 0.024879 26,929 0.021612 46,651 0.038317
Available-for-sale financial assets 42,068 0.032191 41,546 0.033343 41,459 0.034053
Property, plant and equipment - net 504,711 0.386212 497,352 0.399152 455,323 0.373985
Investment property - net 7,295 0.005582 4,746 0.003809 3,643 0.002992
Biological assets - net of current portion 2,263 0.001732 2,177 0.001747 1,973 0
Goodwill - net 58,113 0.044469 58,603 0.047032 41,211 0.033849
Other intangible assets - net 125,165 0.095778 139,969 0.112333 45,114 0.037055
Deferred tax assets 20,267 0.015509 16,441 0.013195 14,651 0.012034
Other noncurrent assets - net 35,003 0.026785 35,648 0.028609 37,014 0.030402
Total Noncurrent Assets 827,397 0.633136 823,411 0.660832 687,039 0.564308
Total Assets 1,306,824 1 1,246,022 1 1,217,489 1
LIABILITIES AND EQUITY
Current Liabilities
Loans payable 189,277 0.144837 146,859 0.117862 180,059 0.147894
Accounts payable and accrued expenses 121,602 0.093052 102,836 0.082531 121,844 0.100078
Finance lease liabilities - current portion 16,392 0.012543 16,567 0.013296 16,219 0.013322
Income and other taxes payable 16,967 0.012983 13,907 0.011161 13,303 0.010927
Dividends payable 3,992 0.003055 1,996 0.001602 3,134 0.002574
Current maturities of long-term debt - net of debt issue costs 31,378 0.024011 37,554 0.030139 19,852 0.016306
Total Current Liabilities 379,608 0.290481 319,719 0.256592 354,411 0.2911

Noncurrent Liabilities
Long-term debt - net of current maturities and debt issue costs 297,222 0.227438 330,823 0.265503 283,136 0.232557
Deferred tax liabilities 17,229 0.013184 15,329 0.012302 7,820 0.006423
Finance lease liabilities - net of current portion 153,848 0.117727 162,713 0.130586 170,111 0.139723
Other noncurrent liabilities 22,136 0.016939 32,561 0.026132 12,091 0.009931
Total Noncurrent Liabilities 490,435 0.375288 541,426 0.434524 473,158 0.388634

Equity
Equity Attributable to Equity Holders of the Parent Company
Capital stock - common 16,425 0.012569 16,417 0.013176 16,415 0.013483
Capital stock - preferred 10,187 0.007795 10,187 0.008176 10,187 0.008367
Additional paid-in capital 177,641 0.135933 177,871 0.142751 178,101 0.146286
Equity reserves -7,700 -0.00589 -3,619 -0.0029 3,419 0.002808
Retained earnings:
Appropriated 56,906 0.043545 48,927 0.039267 52,088 0.042783
Unappropriated 135,984 0.104057 127,855 0.102611 120,571 0.099033
Treasury stock -109,501 -0.08379 -139,501 -0.11196 -139,881 -0.11489
279,942 0.214216 238,137 0.191118 240,900 0.197866
Non-controlling Interests 156,839 0.120015 146,740 0.117767 149,020 0.122399
Total Equity 436,781 0.334231 384,877 0.308885 389,920 0.320266
Total Liabilities and Equity 1,306,824 1 1,246,022 1 1,217,489 1
Earnings Performance Analysis (Profitability)

Gross profit
Gross profit Margin 24.99 %
Sales

Rate Earned on Average Total Net Income after tax

4.09 %
Assets (ROA) Average Total Assets

Rate Earned on Average Total Net Income after tax

12.72 %
Equity (ROE) Average Total Equity

Net Income after tax

Rate Earned on Net Sales 7.62 %

Net Sales
Efficiency Analysis (Liquidity)

Accounts Receivable Turnover Net Sales

6.37 times
Ratio Average Accounts Receivable

Days in a year
Average Days for Payment 57.00 days
AR Turnover ratio

Cost of goods sold

Inventory Turnover Ratio 6.98 times
Average Inventory

Average number of Days Sales Days in a year

52.00 days
in Inventory InventortyTurnover ratio
Short-Term Financial Strength Analysis

Working Current Assets-Current

99,819.00
Capital Liabilities

Current Assets
Current Ratio 1.26 times
Current Liabilities

Cash + Accounts
Receivable
Acid-Test Ratio 0.84 times

Current Liabilities
Long-Term Financial Strength Analysis

Total Liabilities
Debt Ratio 67.00 %
Total Assets

Total Equity
Equity Ratio 33.00 %
Total Assets
 Financial Ratio Analysis
(Del Monte Foods, Inc. & San Miguel Corporation)
Earnings Performance Analysis (Profitability) Earnings Performance Analysis (Profitability)

Gross profit
Gross Profit Gross profit Margin 24.99 %
Gross Profit Margin 15.04 % Sales
Net Sales
Rate Earned on Average Total Net Income after tax
4.09 %
Assets (ROA) Average Total Assets
Net Income after tax
Rate Earned on Average Total Assets (ROA) -5.27 %
Average Total Assets Rate Earned on Average Total Net Income after tax
12.72 %
Equity (ROE) Average Total Equity
Net Income after tax
Rate Earned on Average Total Equity (ROE) -20.08 % Net Income after tax
Average Total Equity
Rate Earned on Net Sales 7.62 %
Net Sales
Net Income after tax
Rate Earned on Net Sales -6.66 %
Net Sales

• Return on Assets, return on equity and return on net sales of Del Monte simply means an
unsuccessful generation of profits from investment and management strategies.
 Financial Ratio Analysis
(Del Monte Foods, Inc. & San Miguel Corporation)
Short-Term Financial Strength Analysis Short-Term Financial Strength Analysis

Working Current Assets-Current

99,819.00
Capital Liabilities
Working Capital Current Assets-Current Liabilities 204,636.00
Current Assets
Current Ratio 1.26 times
Current Assets Current Liabilities
Current Ratio 1.37 times
Current Liabilities
Cash + Accounts
Receivable
Cash + Accounts Receivable Acid-Test Ratio 0.84 times
Acid-Test Ratio 0.16 times
Current Liabilities Current Liabilities

• The Short term financial position of both the company is satisfactory because the
current ratios are more than 1.
 Financial Ratio Analysis
(Del Monte Foods, Inc. & San Miguel Corporation)

Long-Term Financial Strength Analysis Long-Term Financial Strength Analysis

Total Liabilities Total Liabilities

Debt Ratio 74.29 % Debt Ratio 67.00 %
Total Assets Total Assets

Total Equity Total Equity

Equity Ratio 25.71 % Equity Ratio 33.00 %
Total Assets Total Assets
 Financial Ratio Analysis
(Del Monte Foods, Inc. & San Miguel Corporation)
Efficiency Analysis (Liquidity) Efficiency Analysis (Liquidity)

Net Sales Accounts Receivable Turnover Net Sales

Accounts Receivable Turnover Ratio 18.86 times 6.37 times
Average Accounts Receivable Ratio Average Accounts Receivable

Days in a year Days in a year

Average Days for Payment 19.35 days Average Days for Payment 57.00 days
AR Turnover ratio AR Turnover ratio

Cost of goods sold Cost of goods sold

Inventory Turnover Ratio 1.92 times Inventory Turnover Ratio 6.98 times
Average Inventory Average Inventory

Days in a year Average number of Days Sales Days in a year

Average number of Days Sales in Inventory 190.10 days 52.00 days
InventortyTurnover ratio in Inventory InventortyTurnover ratio

• The average days for payment of Del Monte shows shorter time of collection than San Miguel
which could indicate an improved quality of accounts receivable for Del Monte.
• The average number of days sales in inventory of San Miguel shows a faster inventory sells
than Del Monte which means more profits are generated.
 Income Statement
(Del Monte Foods, Inc. & San Miguel
Corporation)
• San Miguel’s cost of goods sold decreases each year
compared to Del Monte’s cost of goods sold.

• San Miguel’s net income (7.62%) is higher than Del

Monte’s net income (-6.66%).

• Del Monte’s operating expenses is getting higher each year

which results to a net loss.
After all the findings, it is concluded that financial ratios are the basic and most
important part of any business. It describes the firm’s financial position. As the
data indicates that both Del Monte and San Miguel are international brands and
have expanded its business on large geographical area it shows that San Miguel
is more efficient in controlling its cost of production, thereby, reporting a higher
gross profit rate.

• Del Monte Foods, Inc. must find ways on how to improve their sales and
reduce their expenses
• Since San Miguel Corporation has a good financial performance, they
should focus on how they will maintain it.
Thank You
for
Listening!