Consumer: Del Monte Pacific, Yamazaki Baking, Tata Motors Ltd, Melco Resorts & Entertainment, The Walt Disney Co, Japfa Comfeed Indonesia, Torikizoku and more

For our next Corporate Webinar we are glad to welcome Del Monte Pacific (DELM SP) Chief Corporate Officer Ignacio (Iggy) Sison and Investor Relations Manager Jennifer Luy.

In the upcoming webinar, Jennifer and Iggy will share a short company presentation, after which they will engage in a fireside chat with Smartkarma Insight Provider, Nicolas Van Broekhoven. A live Q&A session will follow.

The Corporate Webinar will be hosted on Tuesday, 15 March 2022, 17:00 SGT.

Dual-listed on the SGX and the Philippine Stock Exchange, Del Monte Pacific Limited is a global branded F&B company that offers premium quality, healthy products. These include packaged fruit, vegetable and tomato, sauces, condiments, pasta, broth, stock, juices, and frozen pineapple under various brands – it also sells fresh pineapples under the S&W brand.

It is proud of its heritage brands – Del Monte, S&W, Contadina, and College Inn – some of which originated in the USA more than 100 years ago. The Group has exclusive rights to use the Del Monte trademarks for packaged products in the United States, South America, the Philippines, Indian subcontinent, and Myanmar, while it owns S&W globally except for Australia and New Zealand. The Group owns the Contadina and College Inn trademarks in various countries.

Corporate Webinars by Smartkarma Corporate Solutions feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.

• Yamazaki Baking (2212 JP) raised prices in January 2022 due to rising oil prices. We are expecting another price hike very soon to reflect the 60% increase in wheat prices.
• These price hikes may not increase Yamazaki Baking’s 2022 OP margin significantly above the guided level.
• However, once input prices normalise following the Russia Ukraine war, we could see Yamazaki Baking’s OP margin reaching 4.0% in the medium term.

• Tata Motors Ltd (TTMT IN) and Tata Motors DVR (TTMT/A IN) are likely inclusions to the S&P SENSEX INDEX in June while Dr. Reddy’s Laboratories (DRRD IN) could be deleted.
• Hindalco Industries (HNDL IN) could be added depending on sector balance while Nestle India (NEST IN) is a close delete on liquidity.
• The inclusion of Tata Motors could result in the discount on the DVR line Tata Motors DVR (TTMT/A IN) narrowing versus the common shares Tata Motors Ltd (TTMT IN). 

• We have guided bullish on Melco Resorts & Entertainment as an early bet on the improving conditions for its Philippines Entertainment Zone property and other group catalysts.
• GGR in Entertainment City Zone rose 20% in 2021 to US$1.35b–pandemic easing.
• Total industry Philippine GGR  for 2021 was up 14.5%  to $2.2b despite a decline in government run Pagcor casinos which had more widespread lockdowns.

• Disney announced a new ad-based tier for Disney+ last week.
• The decision to go this direction may imply market saturation, rising competitive intensity, or an inability to hit its subscriber targets organically.
• Disney’s streaming business is increasingly dominated by low value Hotstar+ subs

Japfa Comfeed’s FY 2021 results were better than we had expected, with a strong rebound in Q4 (after COVID-19 lockdowns). The financial risk profile remains stable. That said, cash flows, which can be volatile, were weak. Liquidity has deteriorated, due to a surge in short-term debt to plug the substantial negative FCF.

• February SSS 112.8% vs. 2021, 39.1% vs. 2019 (pre-pandemic)

• The number of stores at the end of February was 615 (unchanged MoM). The number of directly owned stores was 384 (unchanged MoM).

• Second Toriki Burger store to open in Shibuya on March 10