Del Monte Foods Executive Summary
Del Monte Foods Co.
Capstone 4 Report
By
Abdullah Ghazali
Executive Summary
Del Monte Foods is an American food production, distribution company and marketer of packaged fruits and vegetables. The company is headquartered in San Francisco, California. It is one of the leading producers, distributors and marketers of premium quality, branded food and pet products in the US. The company generated revenue of $3.7 billion in 2010, 94 percent of the sales was from North American operations.
Del Monte has two operating segments, consumer products and pet products. The Consumer Products segment offers a wide selection of vegetables, fruit, and tuna products, under famous brands names, such as Del Monte, Contadina, Orchard Select, and …show more content…
* We may not be able to successfully implement initiatives to improve productivity and streamline operations to control or reduce costs. Failure to implement such initiatives could adversely affect our results of operations.
* The inputs, commodities, ingredients and other raw materials that we require are subject to price increases and shortages that could adversely affect our results of operations.
* Increases in logistics and other transportation-related costs could materially adversely impact our results of operations. Our ability to competitively serve our customers depends on the cost and availability of reliable transportation.
* Our substantial indebtedness could adversely affect our operations and financial condition.
* If our cash from operations is not sufficient to meet our operating needs, expenditures and debt service obligations, we may be required to refinance our debt, sell assets, borrow additional money or raise …show more content…
The Pet Products segment grew by 4.6 percent during the year and Consumer Products segment also grew by 1.9 percent in fiscal 2010. * The Company generated cash flow of approximately $250 million and, through a combination of cash on hand and cash generated, substantially reduced debt levels. * The leverage ratios have decreased from 2.7 in 2009 to 2.3 in 2010. This means that the company is using less debt and liabilities to finance its assets. * The Altman’s Z score has increased from 1.88 in 2009 to 2.19 in 2010. This is a good sign for the company as its above the “distressed” zone, 1.8. * The debt/equity ratio has decreased to 0.71 in 2010. This is a good sign for the company as it indicates that it uses less debt to finance its operations or assets. * The current ratio 2.2 far better than the industry, sector and S&P 500 meaning that they have strong ability to pay current liabilities if
Capstone 4 Report
By
Abdullah Ghazali
Executive Summary
Del Monte Foods is an American food production, distribution company and marketer of packaged fruits and vegetables. The company is headquartered in San Francisco, California. It is one of the leading producers, distributors and marketers of premium quality, branded food and pet products in the US. The company generated revenue of $3.7 billion in 2010, 94 percent of the sales was from North American operations.
Del Monte has two operating segments, consumer products and pet products. The Consumer Products segment offers a wide selection of vegetables, fruit, and tuna products, under famous brands names, such as Del Monte, Contadina, Orchard Select, and …show more content…
* We may not be able to successfully implement initiatives to improve productivity and streamline operations to control or reduce costs. Failure to implement such initiatives could adversely affect our results of operations.
* The inputs, commodities, ingredients and other raw materials that we require are subject to price increases and shortages that could adversely affect our results of operations.
* Increases in logistics and other transportation-related costs could materially adversely impact our results of operations. Our ability to competitively serve our customers depends on the cost and availability of reliable transportation.
* Our substantial indebtedness could adversely affect our operations and financial condition.
* If our cash from operations is not sufficient to meet our operating needs, expenditures and debt service obligations, we may be required to refinance our debt, sell assets, borrow additional money or raise …show more content…
The Pet Products segment grew by 4.6 percent during the year and Consumer Products segment also grew by 1.9 percent in fiscal 2010. * The Company generated cash flow of approximately $250 million and, through a combination of cash on hand and cash generated, substantially reduced debt levels. * The leverage ratios have decreased from 2.7 in 2009 to 2.3 in 2010. This means that the company is using less debt and liabilities to finance its assets. * The Altman’s Z score has increased from 1.88 in 2009 to 2.19 in 2010. This is a good sign for the company as its above the “distressed” zone, 1.8. * The debt/equity ratio has decreased to 0.71 in 2010. This is a good sign for the company as it indicates that it uses less debt to finance its operations or assets. * The current ratio 2.2 far better than the industry, sector and S&P 500 meaning that they have strong ability to pay current liabilities if