COMPANY

HISTORY
The Del Monte name has been
synonymous with premium foods
since its debut in 1886. For
generations, our company has
proudly earned our reputation
with a series of innovations and
a singular dedication to quality.

Today that commitment to

quality is deeply embedded in
our culture. At Del Monte, we
will always strive to cultivate the
best wholesome vegetables,
fruits, and tomatoes to help you
and your family live a life full of
vitality and enjoyment.
IDENTIFY THE RISK EXPERIENCE BY
THE COMPANY.
Financial Market Risk
Foreign Currency
Cash and Interest Rate
Economic Risk
Inflation
Business or Operational Risk
Weather conditions and natural catastrophes
Credit Risk
Increased collections
HOW DID THE MANAGEMENT
HANDLE/MITIGATE/MANAGE/CONTROL
THE RISK?
Financial Market Risks
The company is subject to transaction and translation exposures resulting from
exchange rate fluctuations between Philippine Peso and US Dollar and Mexico
Peso and US Dollar. The company has natural hedges for the Philippine Peso and
the US Dollar due to its revenue and cost mix. Del Monte Inc. hedges its
exposure to the Mexican Peso through certain forward contracts.
They obtain financing through bank borrowings and leasing agreements. Also
from bank credit facilities, for both short-term and long-term requirements and
through the sale of assets, particularly receivables from costumers. They manage
its interest rate exposure through fixed-rate loan agreements and certain fixed-
rate contracts.
HOW DID THE MANAGEMENT
HANDLE/MITIGATE/MANAGE/CONTROL
THE RISK?
Economic Risk
They lessen the impact of cost increases by actively controlling its overall cost structure
and introducing productivity-enhancing and cost management measures.
Business or Operational Risk
To minimize any impact from heavy rainfall and floods, the company plans various locations
in our country ensuring continuity of harvest during wet conditions. It is located on high
elevation which lessens the risk of flooding.
Credit Risk
The management has a credit policy which is the costumers must attain the certain
requirements of certain securities to ensure prompt observance and performance of
obligations of their distributors and buyers.
SUGGEST STRATEGIES TO PREVENT
EXPERIENCING THE SAME RISK AGAIN.
Financial Market Risk
The company can short the currency theyre exposed to. Selling currencies
for a predetermined price on a specific date on the future. They can also
look for high interest rates. And buy undervalued currencies just like
buying undervalued stocks.
Economic Risk
Reducing demand for exports, increasing incentive for exporters to cut
costs and making imports cheaper
Business or Operational Risk
They must provide or execute long-term strategic plans supported by a
contingency plan, disaster recovery plans and business continuity plans.
SUGGEST STRATEGIES TO PREVENT
EXPERIENCING THE SAME RISK AGAIN.
Credit Risk
They can develop a more focused collection strategy by determining which
accounts have the highest payment potential.
Avoid long overdue accounts so that your capital will not be tied up and
there will be less chance of accounts becoming uncollectible.