Del Monte Pacific Limited and its Subsidiaries

Unaudited Interim Condensed Consolidated

Financial Statements
As at 31 January 2022
and for the Three-month and Nine-month Periods Ended
31 January 2022 and 2021
(With Comparative Audited Consolidated Statement of
Financial Position as at 30 April 2021)
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Unaudited Interim Consolidated Statements of Financial Position

(With Comparative Audited Figures as at 30 April 2021)

As at As at
Note 31 January
30 April 2021
2022
US$’000 US$’000
(Unaudited) (Audited)
Noncurrent assets
Property, plant and equipment – net 6 547,688 544,776
Right-of-use assets 30 110,787 135,208
Investments in joint ventures 8 20,364 22,530
Intangible assets and goodwill 7 689,709 694,697
Deferred tax assets – net 22 117,659 130,538
Biological assets 10 2,738 2,655
Pension assets 6,078 7,889
Other noncurrent assets 9 31,741 25,325
1,526,764 1,563,618
Current assets
Biological assets 10 45,693 44,913
Inventories 11 754,728 557,602
Trade and other receivables 12, 24 234,988 185,049
Prepaid expenses and other current assets 13 41,022 37,286
Cash and cash equivalents 14, 24 33,338 29,435
1,109,769 854,285
Total assets 2,636,533 2,417,903
Equity
Share capital 28 49,449 49,449
Share premium 478,339 478,339
Retained earnings 130,221 83,349
Reserves 15 (39,330) (29,953)
Equity attributable to owners of the Company 618,679 581,184
Non-controlling interests 68,436 61,312
Total equity 687,115 642,496
Noncurrent liabilities
Loans and borrowings 16, 24 1,022,737 953,290
Lease liabilities 30 81,608 103,690
Employee benefits 32,104 31,866
Environmental remediation liabilities 19 203 7,429
Deferred tax liabilities – net 22 10,554 6,599
Other noncurrent liabilities 17 15,661 18,697
1,162,867 1,121,571
Current liabilities
Loans and borrowings 16, 24 460,492 332,453
Lease liabilities 30 24,755 25,113
Employee benefits 33,710 38,275
Trade and other current liabilities 20, 24 263,147 254,729
Current tax liabilities 4,447 3,266
786,551 653,836
Total liabilities 1,949,418 1,775,407
Total equity and liabilities 2,636,533 2,417,903
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Unaudited Interim Consolidated Statements of Income

Three months ended Nine months ended

31 January 31 January
Note 2022 2021 2022 2021
US$’000 US$’000 US$’000 US$’000

Revenue 4, 21 659,423 628,353 1,772,548 1,664,864

Cost of sales (496,237) (459,442) (1,297,461) (1,242,102)
Gross profit 4 163,186 168,911 475,087 422,762
Distribution and selling expenses (61,734) (58,213) (164,630) (153,302)
General and administrative (32,792) (36,090) (98,854) (107,138)
27
expenses
Other income (expense) – net 1,400 (309) (1,537) 355
Results from operating activities 70,060 74,299 210,066 162,677

Finance income 33 761 493 2,404 4,049

Finance expense 33 (28,202) (27,216) (82,083) (83,204)
Net finance expense (27,441) (26,723) (79,679) (79,155)

Share in net loss of joint ventures 4 (1,617) (92) (3,167) (999)

Profit before taxation 4 41,002 47,484 127,220 82,523

Tax expense – current 22 (6,370) (5,036) (16,941) (22,648)

Tax expense – deferred 22 (4,161) (7,043) (17,051) (1,149)
22 (10,531) (12,079) (33,992) (23,833)

Profit for the period 30,471 35,405 93,228 58,690

Profit attributable to:

Non-controlling interest 4,537 5,247 13,171 9,929
Owners of the Company 25,934 30,158 80,057 48,761
30,471 35,405 93,228 58,690

Earnings per share

Basic earnings per share (U.S.
cents) 29 1.08 1.30 3.36 1.75
Diluted earnings per share (U.S.
cents) 29 1.08 1.30 3.36 1.75

The accompanying notes form an integral part of these unaudited interim condensed
consolidated financial statements. FS3
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Unaudited Interim Consolidated Statements of Comprehensive Income

Three months ended Nine months ended

31 January 31 January
2022 2021 2022 2021
US$’000 US$’000 US$’000 US$’000

Profit for the period 30,471 35,405 93,228 58,690

Other comprehensive income (loss)

Items that will not be reclassified
subsequently to profit or loss

Share in remeasurement of retirement plans 6 3,197 30 10,543

Tax impact on share in remeasurement of
retirement plans – (784) (3) (2,578)
6 2,413 27 7,965

Items that may be reclassified subsequently

to profit or loss

Share in currency translation differences (2,202) 1,147 (10,364) 7,524

Share in effective portion of changes in fair
value of cash flow hedges of a subsidiary (584) 1,699 (524) 4,222
Tax impact on share in cash flow hedges 143 (416) 128 (1,034)
(2,643) 2,430 (10,760) 10,712
Other comprehensive income (loss) for the
period, net of tax (2,637) 4,843 (10,733) 18,677

Total comprehensive income for the period 27,834 40,248 82,495 77,367

Total comprehensive income attributable

to:
Owners of the Company 23,608 34,760 70,680 65,762
Non-controlling interests 4,226 5,488 11,815 11,605
27,834 40,248 82,495 77,367

The accompanying notes form an integral part of these unaudited interim condensed
consolidated financial statements.
FS4
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Unaudited Interim Consolidated Statements of Changes in Equity

Nine months ended 31 January 2022 and 2021

<---------------------------------------------- Attributable to owners of the Company -------------------------------------->

Remeasure-
Revalua- ment of Share Reserve Non-
Share Share Translation tion retirement Hedging option for own Retained controlling Total
capital premium reserve reserve plans reserve reserve shares earnings Total interests equity
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
(Note
(Note 28)
28)
Fiscal Year 2022
At 1 May 2021 49,449 478,339 (81,971) 14,278 35,049 1,224 1,753 (286) 83,349 581,184 61,312 642,496

Total comprehensive income

(loss) for the period
Profit for the period (Note 29) – – – – – – – – 80,057 80,057 13,171 93,228

Other comprehensive income

Currency translation differences – – (9,031) – – – – – – (9,031) (1,333) (10,364)
Remeasurement of retirement plans – – – – 25 – – – – 25 2 27
Effective portion of changes in fair
value of cash flow hedges – – – – – (371) – – – (371) (25) (396)
Total other comprehensive
income (loss) – – (9,031) – 25 (371) – – – (9,377) (1,356) (10,733)
Total comprehensive income
(loss) for the period – – (9,031) – 25 (371) – – 80,057 70,680 11,815 82,495

Transactions with owners of the Company

recognized directly in equity
Contributions by and
distributions to owners of the
Company
Payment of dividends – – – – – – – – (33,185) (33,185) (4,691) (37,876)

At 31 January 2022 49,449 478,339 (91,002) 14,278 35,074 853 1,753 (286) 130,221 618,679 68,436 687,115

The accompanying notes form an integral part of these unaudited condensed consolidated interim financial statements.
FS5
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Unaudited Interim Consolidated Statements of Changes in Equity

Nine months ended 31 January 2022 and 2021

<---------------------------------------------- Attributable to owners of the Company -------------------------------------->

Remeasure-
Revalua ment of Share Reserve Non-
Share Share Translation -tion retirement Hedging option for own Retained controlling Total
capital premium reserve reserve plans reserve reserve shares earnings Total interests equity
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
(Note
(Note 28)
28)
Fiscal Year 2021
At 1 May 2020 49,449 478,339 (87,997) 13,731 (2,873) (1,802) 1,753 (286) 60,763 511,077 54,820 565,897
Total comprehensive income
(loss) for the period
Profit for the period
(Note 29) – – – – – – – – 48,761 18,603 48,761 23,285
Other comprehensive income
Currency translation differences – – 6,564 – – – – – – 6,564 960 7,524
Remeasurement of retirement plans – – – – 7,455 – – – – 7,455 510 7,965
Effective portion of changes in fair
value of cash flow hedges – – – – – 2,982 – – – 2,982 206 3,188
Total other comprehensive
income – – 6,564 – 7,455 2,982 – – – 17,001 1,676 18,677
Total comprehensive income
(loss) for the period – – 6,564 – 7,455 2,982 – – 48,761 65,762 11,605 77,367
Transactions with owners of the Company
recognized directly in equity
Contributions by and
distributions to owners of the
Company
Sale of shares of a subsidiary – – – – – – – – 6,584 6,584 – 6,584
Payment of dividends – – – – – – – – (39,930) (39,930) (6,128) (46,058)
Total contributions by and
distributions to owners – – – – – – – – (33,346) (33,346) (6,128) (39,473)
At 31 January 2020 49,449 478,339 (81,433) 13,731 4,582 1,180 1,753 (286) 76,178 543,493 60,297 603,790

The accompanying notes form an integral part of these unaudited condensed consolidated interim financial statements.
FS6
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Unaudited Interim Consolidated Statements of Cash Flows

Nine months ended

31 January
Note 2022 2021
US$’000 US$’000

Cash flows from operating activities

Profit for the period 93,228 58,690
Adjustments for:
Depreciation of property, plant and equipment 26 110,318 95,414
Amortization of right-of-use assets 30,200 28,582
Amortization of intangible assets 7, 26 4,988 4,988
Impairment loss (reversal) on property,
plant and equipment 6 62 (46)
Gain on disposal of property, plant
and equipment (16) (2,783)
Share in net loss of joint ventures 4 3,167 999
Net loss (gain) on derivative settlement (343) 50
Finance income* 33 (2,404) (4,049)
Finance expense* 33 82,083 83,204
Tax expense – current 22 16,941 22,684
Tax expense – deferred 22 17,051 1,149
355,275 288,882
Changes in:
Other assets (11,185) 5,399
Inventories (200,993) (123,318)
Biological assets (3,634) 13,180
Trade and other receivables (56,864) (4,509)
Prepaid expenses and other current assets 1,573 (4,991)
Trade and other payables 7,306 (25,001)
Employee benefits (2,619) 18,116
Operating cash flows 88,859 167,758
Taxes paid (11,528) (21,378)
Net cash flows used in operating activities 77,331 146,380
Cash flows from investing activities
Purchase of property, plant and equipment 4 (132,655) (103,810)
Proceeds from disposal of property, plant and
equipment 337 6,758
Interest received 900 267
Advances to joint venture – (840)
Investment in new joint venture 8 (1,001) –
Additional sale of shares of subsidiary – 8,967
Collection of receivables from prior year sale of
shares of a subsidiary and settlement of transaction
costs – 106,520
Net cash flows provided by (used in) investing
activities (132,419) 17,862

(continued on next page)

*Includes foreign exchange gains and losses

The accompanying notes form an integral part of these unaudited interim condensed
consolidated financial statements.
FS7
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Unaudited Interim Consolidated Statements of Cash Flows (continued)

Nine months ended

31 January
Note 2022 2021
US$’000 US$’000

Cash flows from financing activities

Proceeds from borrowings 2,247,585 3,642,924
Repayment of borrowings (2,035,967) (3,655,917)
Interest paid (81,637) (58,484)
Payments of lease liabilities (26,389) (30,383)
Dividends paid (37,876) (46,058)
Payment of debt related costs (1,834) (18,985)
Net cash flows used in financing activities 63,882 (166,903)

Net increase (decrease) in cash and cash equivalents 8,794 (2,661)

Cash and cash equivalents at beginning of period 29,435 33,465
Effect of exchange rate changes on balances
held in foreign currency (4,891) 2,470
Cash and cash equivalents at end of period 14 33,338 33,274

FS8
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Selected Notes to the Unaudited Interim Condensed Consolidated Financial

Statements

These notes form an integral part of the unaudited interim condensed consolidated financial
statements.

1. Domicile and activities

Del Monte Pacific Limited (the “Company”) was incorporated as an international business
company in the British Virgin Islands on 27 May 1999 under the International Business
Companies Act (Cap. 291) of the British Virgin Islands. It was automatically re-registered as a
company on 1 January 2007 when the International Business Companies Act was repealed and
replaced by the Business Companies Act 2004 of the British Virgin Islands.

The registered office of the Company is located at Craigmuir Chambers, Road Town, Tortola,
British Virgin Islands.

The principal activity of the Company is that of investment holding. Its subsidiaries are
principally engaged in growing, processing, and selling packaged fruits, vegetable and tomato,
fresh pineapples, sauces, condiments, pasta, broth and juices, mainly under the brand names of
“Del Monte”, “S&W”, “Today’s”, “Contadina”, “College Inn” and other brands. The
Company’s subsidiaries also produce and distribute private label food products.

The immediate holding company is NutriAsia Pacific Limited (“NAPL”) whose indirect
shareholders are NutriAsia Inc. (“NAI”) and Well Grounded Limited (“WGL”), which at
31 January 2022 and 30 April 2021, each held 57.8% and 42.2% interests in NAPL,
respectively, through their intermediary company, NutriAsia Holdings Limited. NAPL, NAI
and WGL were incorporated in the British Virgin Islands. The ultimate holding company is
HSBC International Trustee Limited.

On 2 August 1999, the Company was admitted to the Official List of the Singapore Exchange
Securities Trading Limited (“SGX-ST”). The Ordinary Shares of the Company were also listed
on the Philippine Stock Exchange Inc. (“PSE”) on 10 June 2013. Thereafter, the first tranche of
the Company’s Preference Shares was listed on 7 April 2017 and the second tranche on
15 December 2017.

On 6 August 2010, the Company established DM Pacific Limited-ROHQ (“ROHQ”), the

regional operating headquarters of the Company in the Philippines. The ROHQ is registered
with and licensed by the Securities and Exchange Commission (“SEC”) to engage in general
administration and planning, business planning and coordination, sourcing and procurement of
raw materials and components, corporate financial advisory, marketing control and sales
promotion, training and personnel management, logistics services, research and product
development, technical support and maintenance, data processing and communication, and
business development. The ROHQ commenced its operations in October 2015.

The consolidated financial statements of the Group as at and for the nine-month periods ended
31 January 2022 and 2021 comprise the Company and its subsidiaries (together referred to as
the “Group”, and individually as “Group entities”), and the Group’s interests in joint ventures.

FS9
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

2. Basis of preparation

2.1 Statement of compliance

The accompanying unaudited interim condensed consolidated financial statements as at

31 January 2022 and for the nine months ended 31 January 2022 and 2021 have been prepared
in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting.
The unaudited interim condensed consolidated financial statements do not include all of the
information and disclosures required in the annual consolidated financial statements and should
be read in conjunction with the 2021 annual audited consolidated financial statements,
comprising the consolidated statements of financial position as at 30 April 2021 and 2020 and
the consolidated statements of income, consolidated statements of comprehensive income,
consolidated statements of changes in equity and consolidated statements of cash flows for the
years ended 30 April 2021, 2020, and 2019.

2.2 Basis of measurement

The unaudited interim condensed consolidated financial statements have been prepared on the
historical cost basis except as otherwise described in the succeeding notes below.

2.3 Functional and presentation currency

These unaudited interim condensed consolidated financial statements are presented in United
States dollars (US$), which is the Company’s functional currency. All financial information
presented in US dollars has been rounded to the nearest thousand, unless otherwise stated.

2.4 Use of estimates and judgements

The preparation of the unaudited interim condensed consolidated financial statements in

conformity with International Financial Reporting Standards (IFRS) requires management to
make judgements, estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income and expenses. Actual results may differ
from these estimates.

Judgements

Information about judgements made in applying accounting policies that have the most
significant effects on the amounts recognized in the unaudited interim condensed consolidated
financial statements are included in the following notes:

Note 7 – Assessment of useful life of intangible assets with indefinite useful life
Note 30 – Determination of lease term of contracts with renewal options
Note 31 – Contingencies

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognized in the period in which the estimates are revised and in any
future periods affected. There are no changes in significant judgment and estimate since
30 April 2021.

FS10
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Information about assumptions and estimation uncertainties that have a significant risk resulting
in a material adjustment within the next financial year are included in the following notes:

Note 6 – Useful lives of property, plant and equipment, revaluation of freehold land,
estimate of harvest for bearer plant’s depreciation
Note 6 – Impairment of property, plant and equipment
Note 7 – Useful lives of intangible assets and impairment of goodwill and intangible assets
with infinite life
Note 8 – Recoverability of investments in joint ventures
Note 10 – Future cost of growing crops and fair value of livestock, harvested crops, and
produce prior to harvest and future volume of harvest
Note 11 – Allowance for inventory obsolescence and net realizable value
Note 12 – Impairment of trade and nontrade receivables
Note 18 – Measurement of employee benefit obligations
Note 19 – Estimation of environmental remediation liabilities
Note 20 – Estimation of trade promotion accruals
Note 22 – Measurement of income tax
Note 22 – Realizability of deferred tax assets
Note 25 – Determination of fair values
Note 30 – Determination of incremental borrowing rate for lease liabilities
Note 31 – Contingencies

3. Significant accounting policies

Changes in Accounting Policies and Disclosures

The accounting policies adopted in the preparation of the unaudited interim condensed
consolidated financial statements are consistent with those followed in the preparation of the
Group’s 2021 annual consolidated financial statements, except for the adoption of the following
amendments effective beginning 1 May 2021, which did not have any significant impact on the
Group’s financial position or performance, unless otherwise indicated:

 Amendments to IFRS 16, COVID-19-related Rent Concessions. The amendments

provide relief to lessees from applying the IFRS 16 requirement on lease modifications to
rent concessions arising as a direct consequence of the COVID-19 pandemic. A lessee
may elect not to assess whether a rent concession from a lessor is a lease modification if it
meets all of the following criteria:

- The rent concession is a direct consequence of COVID-19;

- The change in lease payments results in a revised lease consideration that is
substantially the same as, or less than, the lease consideration immediately preceding
the change;
- Any reduction in lease payments affects only payments originally due on or before
30 June 2021; and
- There is no substantive change to other terms and conditions of the lease.

A lessee that applies this practical expedient will account for any change in lease
payments resulting from the COVID-19 related rent concession in the same way it would
account for a change that is not a lease modification, i.e., as a variable lease payment.

FS11
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

 Amendments to IFRS 9, IFRS 7, IFRS 4 and IFRS 16, Interest Rate Benchmark Reform –
Phase 2. The amendments provide temporary reliefs which address the financial
reporting effects when an interbank offered rate (“IBOR”) is replaced with an alternative
nearly risk-free interest rate (“RFR”):

- Practical expedient for changes in the basis for determining the contractual cash flows
as a result of IBOR reform
- Relief from discontinuing hedging relationships
- Relief from the separately identifiable requirement when an RFR instrument is
designated as a hedge of a risk component

The Group shall also disclose information about:

- The nature and extent of risks to which the entity is exposed arising from financial
instruments subject to IBOR reform, and how the entity manages those risks; and
- Their progress in completing the transition to alternative benchmark rates, and how
the entity is managing that transition

The amendments are effective for annual reporting periods beginning on or after
1 May 2021 and apply retrospectively, however, restatement of comparative information is
not required. As at 31 January 2022, the Group has an outstanding loan that is subject to
IBOR and no alternative risk-free-rate has been agreed yet. Since the negotiation for the
alternative risk-free-rate is still ongoing, the impact of adopting this amendment cannot be
determined yet as at 31 January 2021. The Group intends to use the practical expedient to
treat the contractual changes or changes to cash flows that are directly required by the
reform as changes to a floating interest rate.

4. Operating segments

The Group has two types of operating segments: geographical and product. In identifying these
operating segments, management generally considers geographical as its primary operating
segment.

Geographical segments

Americas

Reported under the Americas segment are sales and profit on sales in USA, Canada and Mexico.
Majority of this segment’s sales are principally sold under the Del Monte brand but also
includes products under the Contadina, S&W, College Inn and other brands. This segment also
includes sales of private label food products. Sales in the Americas are distributed across the
United States, in all channels serving retail markets, as well as to the US military, certain export
markets, the foodservice industry and other food processors.

Asia Pacific

Reported under Asia Pacific are sales and profit on sales in the Philippines, comprising of Del
Monte branded packaged products, including Del Monte traded goods, and Today’s brand;
S&W products in Asia and the Middle East both fresh and packaged; and Del Monte packaged
products from the Philippines into Indian subcontinent as well as unbranded fresh and packaged
goods.

FS12
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Europe

Included in this segment are sales of co-branded and unbranded products in Europe.

Product segments

Packaged fruit and vegetable

The packaged fruit and vegetable segment includes sales and profit of processed fruit and
vegetable products under the Del Monte, S&W and Today’s brands, as well as buyer’s labels,
that are packaged in different formats such as can, plastic cup, pouch and aseptic bag. Key
products under this segment are canned beans, peaches and corn sold in the United States and
canned pineapple and tropical mixed fruit in Asia Pacific.

Beverage

Beverage includes sales and profit of 100% pineapple juice in can, juice drinks in various
flavors in can, tetra and PET packaging, and pineapple juice concentrate.

Culinary

Culinary includes sales and profit of packaged tomato-based products such as ketchup, tomato
sauce, pasta sauce, recipe sauce, pizza sauce, pasta, broth and condiments under four brands,
namely Del Monte, S&W, College Inn and Contadina.

Fresh fruit and others

Fresh fruit and others include sales and profit of S&W branded fresh pineapples in Asia Pacific
and buyer’s label or non-branded fresh pineapples in Asia, and sales and profit of cattle in the
Philippines. The cattle operation helps in the disposal of pineapple pulp, a residue of pineapple
processing which is fed to the animals. This also include non-branded sales to South America as
well as various product innovations such as Mr. Milk, a new fruit yoghurt milk drink introduced
in July 2020.

The Group allocated certain overhead and corporate costs to the various product segments based
on sales for each segment relative to the entire Group.

Information about reportable segments

Americas Asia Pacific Europe Total

Three months Three months Three months Three months
ended ended ended ended
31 January 31 January 31 January 31 January
2022 2021 2022 2021 2022 2021 2022 2021
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Revenue
Packaged fruit and
vegetable 368,431 345,792 43,584 44,926 5,071 6,497 417,086 397,215
Beverage 9,732 5,061 35,466 33,863 1,519 4,121 46,717 43,045
Culinary 91,159 92,197 48,935 50,332 61 134 140,155 142,663
Fresh fruit and others 1,951 214 53,514 45,216 – – 55,465 45,430
Total 471,273 443,264 181,499 174,337 6,651 10,752 659,423 628,353

(continued to next page)

FS13
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Americas Asia Pacific Europe Total

Three months Three months Three months Three months
ended ended ended ended
31 January 31 January 31 January 31 January
2022 2021 2022 2021 2022 2021 2022 2021
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Gross profit (loss)
Packaged fruit and
vegetable 85,513 93,208 15,505 15,835 1,984 1,865 103,002 110,908
Beverage 1,267 59 9,392 9,320 275 665 10,934 10,044
Culinary 12,902 14,799 18,530 20,378 27 68 31,459 35,245
Fresh fruit and others (18) (564) 17,809 13,278 – – 17,791 12,714
Total 99,664 107,502 61,236 58,811 2,286 2,598 163,186 168,911

Share in net loss of joint ventures

Packaged fruit and
vegetable – – (233) (13) – – (233) (13)
Beverage – – (13) 7 – – (13) 7
Culinary – – (420) (110) – – (420) (110)
Fresh fruit and others – – (951) 24 – – (951) 24
Total – – (1,617) (92) – – (1,617) (92)

Profit (loss) before taxation

Packaged fruit and
vegetable 13,256 25,680 10,283 11,105 1,543 1,192 25,082 37,977
Beverage (311) (501) 3,532 2,702 107 309 3,328 2,510
Culinary (4,134) (4,616) 12,273 13,405 22 52 8,161 8,841
Fresh fruit and others 597 (2,779) 3,834 935 – – 4,431 (1,844)
Total 9,408 17,784 29,922 28,147 1,672 1,553 41,002 47,484

Other information
Capital expenditure 5,406 5,434 38,131 33,837 – – 43,537 39,217

Americas Asia Pacific Europe Total

Nine months ended Nine months ended Nine months ended Nine months ended
31 January 31 January 31 January 31 January
2022 2021 2022 2021 2022 2021 2022 2021
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Revenue
Packaged fruit and
vegetable 1,006,905 923,317 117,430 105,005 15,770 15,127 1,140,105 1,043,449
Beverage
26,166 13,562 104,887 112,777 7,338 6,201 138,391 132,540
Culinary 215,290 228,367 122,482 129,341 138 221 337,910 357,929

Fresh fruit and others 4,544 1,375 151,598 129,571 – – 156,142 130,946

Total 1,252,905 1,166,621 496,397 476,694 23,246 21,549 1,772,548 1,664,864

Gross profit (loss)

Packaged fruit and
vegetable 261,079 218,795 40,187 33,862 5,925 3,600 307,191 256,257
Beverage 3,909 625 30,419 35,147 1,918 943 36,246 36,715
Culinary 36,939 41,840 48,331 53,910 52 109 85,322 95,859
Fresh fruit and others (560) (1,779) 46,888 35,710 – – 46,328 33,931
Total 301,367 259,481 165,825 158,629 7,895 4,652 475,087 422,762

(continued to next page)

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Americas Asia Pacific Europe Total

Nine months ended Nine months ended Nine months ended Nine months ended
31 January 31 January 31 January 31 January
2022 2021 2022 2021 2022 2021 2022 2021
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Share in net loss of joint ventures
Packaged fruit and
vegetable – – (798) (219) – – (798) (219)
Beverage – – (94) (44) – – (94) (44)
Culinary – – (1,234) (610) – – (1,234) (610)
Fresh fruit and others – – (1,041) (126) – – (1,041) (126)
Total – – (3,167) (999) – – (3,167) (999)

Profit (loss) before taxation

Packaged fruit and
vegetable 57,183 21,452 26,206 21,588 3,744 2,175 87,133 45,215
Beverage (914) (1,754) 12,143 17,902 1,140 421 12,369 16,569
Culinary (4,918) (10,370) 30,438 36,036 33 79 25,553 25,745
Fresh fruit and others (5,017) (5,714) 7,182 708 – – 2,165 (5,006)
Total 46,334 3,614 75,969 76,234 4,917 2,675 127,220 82,523

Other information
Capital expenditure 16,231 13,576 116,424 90,234 – – 132,655 103,810

Major customer

Revenues from a major customer of the Americas segment for the three months and nine
months ended 31 January 2022 amounted to US$149.7 million (31 January 2021:
US$122.3 million) and US$424.2 million (31 January 2021: US$359.2 million), respectively,
representing 31.8% (31 January 2021: 27.6%) and 33.9% (31 January 2021: 30.8%) of the total
Americas segment’s net revenue, respectively.

5. Seasonality of operations

The Group’s business is subject to seasonal fluctuations as a result of increased demand during
the end of year festive season. For Americas, products are sold heavily during the Thanksgiving
and Christmas seasons. As such, the Group’s sales are usually highest during the five months
from August to December.

The Group operates 11 production facilities in the USA, Mexico, and the Philippines as at
31 January 2022 and 30 April 2021. Fruit plants are located in California and Washington in
the United States and in the Philippines. Most of its vegetable plants are located in the U.S.
Midwest and its tomato plant are located in California.

The US Consumer Food Business has a seasonal production cycle that generally runs between
the months of June and October. This seasonal production primarily relates to the majority of
processed fruit, vegetable and tomato products, while some of its processed fruit and tomato
products and its College Inn broth products are produced throughout the year. Additionally, the
Consumer Food Business has contracts to co-pack certain processed fruit and vegetable
products for other companies.

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

6. Property, plant and equipment

At
appraised
<------------------------- At cost ------------------------------------------> value
Buildings, land
improvements Machineries
and leasehold and Construction- Bearer Freehold
improvements equipment in-progress Plants land Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Group
Cost/Valuation
At 1 May 2021 227,519 593,896 34,953 374,803 63,145 1,294,316
Additions 3,700 3,355 24,183 100,694 – 131,932
Disposals (12) (1,623) – – – (1,635)
Write off - closed fields – – – (65,666) – (65,666)
Reclassifications from CIP 1,803 16,293 (18,096) – – –
Currency realignment (4,374) (13,651) (924) (21,807) (926) (41,682)
At 31 January 2022 228,636 598,270 40,116 388,024 62,219 1,317,265

At 1 May 2020 224,926 561,392 29,151 361,982 63,294 1,240,745

Additions 4,328 3,725 36,430 121,586 – 166,069
Disposals (8,095) (9,897) – – (870) (18,862)
Write off - closed fields – – – (125,362) – (125,362)
Reclassifications from CIP 2,897 28,295 (31,192) – – –
Currency realignment 3,463 10,381 564 16,597 721 31,726
At 30 April 2021 227,519 593,896 34,953 374,803 63,145 1,294,316

Accumulated depreciation and impairment losses

At 1 May 2021 110,782 415,584 – 214,638 8,536 749,540
Charge for the period 7,716 26,168 – 78,861 – 112,745
Provision of impairment loss – 62 – – – 62
Write off - closed fields – – – (65,666) – (65,666)
Disposals (10) (1,036) – – – (1,046)
Currency realignment (2,288) (10,790) – (12,980) – (26,058)
At 31 January 2022 116,200 429,988 – 214,853 8,536 769,577

At 1 May 2020 101,750 371,508 – 241,366 8,536 723,160

Charge for the year 10,553 43,990 – 87,715 – 142,258
Write off - closed fields – – – (125,362) – (125,362)
Disposals (3,223) (7,702) – – – (10,925)
Currency realignment 1,702 7,788 – 10,919 – 20,409
At 30 April 2021 110,782 415,584 – 214,638 8,536 749,540

Carrying amounts
At 31 January 2022 112,436 168,282 40,116 173,171 53,683 547,688
At 30 April 2021 116,737 178,312 34,953 160,165 54,609 544,776

Depreciation recognized in the consolidated statements of cash flows is net of the amount
capitalized in inventories.

The Group has amounts in accrued liabilities relating to property, plant and equipment
acquisitions of US$0.6 million as at 31 January 2022 (30 April 2021: US$2.9 million). Down
payments made by the Group for the acquisition of property, plant and equipment amounted to
US$3.1 million as at 31 January 2022 (30 April 2021: US$1.1 million). The Group has written
off fully depreciated assets related to closed fields amounting to US$65.7 million for the nine
months ended 31 January 2022 (30 April 2021: US$125.4 million).

FS16
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

7. Intangible assets and goodwill

Indefinite
life Amortizable Customer
Goodwill trademarks trademarks relationship Total
US$’000 US$’000 US$’000 US$’000 US$’000
Cost
At 1 May 2021/
31 January 2022 203,432 408,043 24,180 107,000 742,655

At 1 May 2020/
30 April 2021 203,432 408,043 24,180 107,000 742,655

Accumulated amortization
At 1 May 2021 – – 9,519 38,439 47,958
Amortization – – 975 4,013 4,988
At 31 January 2022 – – 10,494 42,452 52,946

At 1 May 2020 – – 8,219 33,089 41,308

Amortization – – 1,300 5,350 6,650
At 30 April 2021 – – 9,519 38,439 47,958

Carrying amounts
At 31 January 2022 203,432 408,043 13,686 64,548 689,709
At 30 April 2021 203,432 408,043 14,661 68,561 694,697

Amortization expense amounted to US$5.0 million for the nine months ended 31 January 2022
and 2021.

Goodwill

Goodwill arising from the acquisition of Consumer Food Business was allocated to Del Monte
Foods, Inc. (DMFI) and its subsidiaries, which is considered as one cash generating unit
(“CGU”).

Indefinite life trademarks

Management has assessed the following trademarks as having indefinite useful lives as the
Group has exclusive access to the use of these trademarks. These trademarks are expected to be
used indefinitely by the Group as they relate to continuing businesses that have a proven track
record with stable cash flows.

America trademarks

The indefinite life trademarks of US$394.0 million arising from the acquisition of Consumer
Food Business relate to those of DMFI for the use of the “Del Monte” trademarks in the United
States and South America market, and the “College Inn” trademark in the United States,
Australia, Canada and Mexico.

FS17
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

The Philippines trademarks

On 1 May 2020, Dewey Sdn Bhd., assigned to Philippine Packing Management Services
Corporation, various trademarks which include the “Del Monte” and “Today’s” trademarks for
use in connection with processed foods in the Philippines (“The Philippines trademarks”) with
carrying value amounting to US$1.8 million.

Indian sub-continent trademark

In November 1996, a subsidiary, Del Monte Pacific Resources Limited (DMPRL), entered into
an agreement with an affiliated company to acquire the exclusive right to use the “Del Monte”
trademarks in the Indian sub-continent territories and Myanmar in connection with the
production, manufacture, sale and distribution of food products and the right to grant
sub-licenses to others (“Indian sub-continent trademark”). In 2007, the Company acquired
shares in FieldFresh Foods Private Limited (FFPL) and caused the licensing of trademarks to
FFPL to market its products under the “Del Monte” brand in India. These trademarks have a
carrying value of US$4.1 million.

Asia S&W trademark

In November 2007, a subsidiary, S&W Fine Foods International Limited (S&W), entered into
an agreement with Del Monte Corporation to acquire the “S&W” trademarks in certain
countries in Asia (excluding Australia and New Zealand and including the Middle East),
Western Europe and Eastern Europe for a total consideration of US$10.0 million. The
trademark has a carrying value of US$8.2 million.

Impairment test

Management performs an annual impairment testing for all indefinite life trademarks every end
of the year, except for DMFI who performs impairment testing every January. There were no
impairment indicators identified.

Amortizable trademarks and customer relationships

Remaining amortization
Net Carrying amount period (years)
31 January 30 April 31 January 30 April
2022 2021 2022 2021
US$'000 US$'000
Asia S&W Trademark – – – –
America S&W trademark 413 563 2.1 2.8
America Contadina trademark 13,273 14,098 12.1 12.8
13,686 14,661

Asia S&W trademark

The amortizable trademark pertains to “Label Development” trademark. The trademark was
fully amortized on 31 July 2019.

FS18
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

America trademarks

The amortizable trademarks relate to the exclusive right to use of the “S&W” trademark in the
United States, Canada, Mexico and certain countries in Central and South America and
“Contadina” trademark in the United States, Canada, Mexico, South Africa and certain
countries in Asia Pacific, Central America, Europe, Middle East and South America market.

Customer relationships

Customer relationships relate to the network of customers where DMFI has established
relationships with the customers, particularly in the United States market, through contracts.

31 January 30 April
2022 2021
US$'000 US$'000

Net carrying amount 64,548 68,561

Remaining amortization period 12.1 12.8

Source of estimation uncertainty

The Group estimates the useful lives of its amortizable trademarks and customer relationships
based on the period over which the assets are expected to be available for use. The estimated
useful lives of the trademarks and customer relationships are reviewed periodically and are
updated if expectations differ from previous estimates due to legal or other limits on the use of
the assets. A reduction in the estimated useful lives of amortizable trademarks and customer
relationships would increase recorded amortization expense and decrease noncurrent assets.

8. Investments in joint ventures

Effective Equity Held by
the Group
Place of As at As at
Incorporation 31 Jan 2022 30 Apr 2021
Name of joint venture Principal activities and Business % %
FieldFresh Foods Private Production and sale of fresh and India 47.56 47.56
Limited (FFPL) processed fruits and vegetable food
products
Nice Fruit Hong Kong Production and sale of frozen fruits and Hong Kong 35.00 35.00
Limited (NFHKL) vegetable food products
Del Monte - Vinamilk Distribution of milk and dairy products Philippines 43.50 ‒
Dairy Philippines, Inc.

Del Monte - Vinamilk Dairy Philippines, Inc. is a new joint venture entered into by Del Monte
Philippines, Inc. with Vietnam Dairy Products Joint Stock Company, a leading regional dairy
company to expand further into the dairy sector in the Philippines. This joint venture was
incorporated and registered in SEC on 12 July 2021. As at 31 January 2022, the carrying
amount of the related investment in joint venture amounted to $0.1 million.

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

The summarized financial information of a material joint venture, FFPL, not adjusted for the
percentage ownership held by the Group, is as follows:

31 January 30 April
2022 2021
US$’000 US$’000
Assets
Current assets 19,814 23,501
Noncurrent assets 11,053 11,962
Total assets 30,867 35,463
Liabilities
Current liabilities (11,985) (12,595)
Noncurrent liabilities (22,266) (22,572)
Total liabilities (34,251) (35,167)
Net assets (liabilities) (3,384) 296

31 January 30 April
2022 2021
US$’000 US$’000
Results
Revenue 51,992 71,055
Loss from continuing operations (3,631) (2,035)
Other comprehensive income – –
Total comprehensive loss (3,631) (2,035)

31 January 30 April
2022 2021
US$’000 US$’000

Carrying amount of interest in FFPL at beginning of the period/year 19,741 22,855

Impairment loss – (2,096)
Group’s share of:
- Loss from continuing operations (1,816) (1,018)
- Other comprehensive income – –
Total comprehensive loss (1,816) (1,018)
Carrying amount of interest at end of the period/year 17,925 19,741

The interest in the net assets of an immaterial joint venture, NFHKL, is as follows:

31 January 30 April
2022 2021
US$’000 US$’000

Carrying amount of interest in NFHKL 2,789 2,462

at beginning of the period/year
Additional advances during the year – 840
Group’s share of:
- Loss from continuing operations (444) (513)
- Other comprehensive income – –
Total comprehensive loss (444) (513)
Carrying amount of interest at end of the period/year 2,345 2,789

FS20
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

The summarized interest in joint ventures of the Group is as follows:

31 January 30 April
2022 2021
US$’000 US$’000
Group’s interest in joint ventures
FFPL 17,925 19,741
NFHKL 2,345 2,789
Del Monte - Vinamilk Dairy Philippines, Inc. 94 –

Carrying amount of investment in joint ventures

20,364 22,530

Determination of Joint Control and the Type of Joint Arrangement

Joint control is presumed to exist when the investors contractually agreed sharing of control on
an arrangement, which exists only when decisions about the relevant activities require the
unanimous consent of the parties sharing control. Management has assessed that it has joint
control in all joint arrangements.

The Group determines the classification of a joint venture depending upon the parties’ rights
and obligations arising from the arrangement in the normal course of business. When making
an assessment, the Group considers the following:

(a) the structure of the joint arrangement.

(b) when the joint arrangement is structured through a separate vehicle:

i. the legal form of the separate vehicle;

ii. the terms of the contractual arrangement; and
iii. when relevant, other facts and circumstances.

The Group determined that the arrangements in FFPL, NFHKL and Del Monte - Vinamilk
Dairy Philippines, Inc. are joint ventures as these were structured in separate legal vehicles that
have rights to the net assets of the arrangements. The terms of the contractual arrangements do
not specify that the parties have rights to the assets and obligations for the liabilities relating to
the arrangements.

Source of Estimation Uncertainty

In the event a joint venture has suffered recurring operating losses, a test is made to assess
whether the investment in joint venture has suffered any impairment by determining the
recoverable amount. This determination requires significant judgement and estimation. An
estimate is made on the future profitability, cash flow, financial health and near-term business
outlook of the joint venture, including factors such as market demand and performance. The
recoverable amount will differ from these estimates as a result of differences between
assumptions used and actual operations.

From the time the investment in FFPL was made, the Indian sub-continent trademark (Note 7)
and such investment were allocated to the Indian sub-continent cash-generating unit (“Indian
sub-continent CGU”). The recoverable amount of Indian sub-continent CGU was estimated
using the discounted cash flows based on five-year cash flow projections.

FS21
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

9. Other noncurrent assets

31 January 30 April
2022 2021
US$’000 US$’000

Advance rentals and deposits 16,944 12,913

Advances to suppliers 5,107 1,075
Excess insurance 3,600 4,442
Receivable from sale and leaseback 2,973 3,156
Note receivables 1,000 1,000
Lease receivable 333 750
Others 1,784 1,989
31,741 25,325

Advance rentals and deposits consist of noninterest-bearing cash and other advances to growers
and landowners which are collected against delivery of fruits or minimum guaranteed profits of
the growers or against payment of rentals to landowners.

Receivable from sale and leaseback is the noncurrent portion of receivable relating to certain
assets sold to DMPI Employees Agrarian Reform Beneficiaries Cooperation (“DEARBC”) and
subsequently leased back to the Group in fiscal year 2021. The current portion of
US$0.1 million is presented under “Trade and other receivables”.

As at 31 January 2022 and 30 April 2021, notes receivable of US$1.0 million relates to the sale
by DMFI of certain assets at Plymouth in fiscal year 2019. This receivable will be due on
2 July 2023.

10. Biological assets

31 January 30 April
2022 2021
US$’000 US$’000

Livestock
At beginning of the period/year 2,655 2,118
Purchases of livestock 669 1,065
Sales of livestock (431) (631)
Currency realignment (155) 103
At end of the period/year 2,738 2,655

FS22
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

31 January 30 April
2022 2021
US$’000 US$’000
Agricultural produce
At beginning of the period/year 10,878 25,966
Additions 8,120 1,710
Harvested (6,962) (17,896)
Currency realignment (761) 1,098
At end of the period/year 11,275 10,878
Fair value gain on produce prior to harvest 34,418 34,035
At end of the period/year 45,693 44,913

31 January 30 April
2022 2021
US$’000 US$’000

Current 45,693 44,913

Noncurrent 2,738 2,655
Totals 48,431 47,568

11. Inventories

31 January 30 April
2022 2021
US$’000 US$’000
Finished goods
- at cost 403,238 348,045
- at net realizable value 19,043 23,796
Semi-finished goods
- at cost 181,807 70,948
- at net realizable value 10,801 12,328
Raw materials and packaging supplies
- at cost 79,499 47,302
- at net realizable value 60,430 55,183
754,728 557,602

Total cost of inventories carried at net realizable value amounted to US$98.7 million as at
31 January 2022 (30 April 2021: U$104.6 million).

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Inventories are stated after allowance for inventory obsolescence. Movements in the allowance
for inventory obsolescence during the period/year are as follows:

31 January 30 April
Note 2022 2021
US$’000 US$’000

At beginning of the period/year 13,254 14,868

Allowance for the period/year 26 779 7,043
Write-off against allowance (5,028) (7,323)
Currency realignment (448) (1,334)
At end of the period/year 8,557 13,254

The allowance for inventory obsolescence recognized during the period is included in “Cost of
sales”.

Source of estimation uncertainty

The Group recognizes allowance on inventory obsolescence when inventory items are identified
as obsolete. Obsolescence is based on the physical and internal condition of inventory items.
Obsolescence is also established when inventory items are no longer marketable. Obsolete
goods when identified are charged to the consolidated statements of income and are written off.
In addition to an allowance for a specifically identified obsolete inventory, estimation is made
on a group basis based on the age of the inventory items. The Group believes such estimates
represent a fair charge of the level of inventory obsolescence in a given period. The Group
reviews on a monthly basis the condition of its inventory. The assessment of the condition of
the inventory either increases or decreases the expenses or total inventory.

Estimates of net realizable value are based on the most reliable evidence available at the time
the estimates are made of the amount the inventories are expected to be realized. These
estimates take into consideration fluctuations of price or cost directly relating to events
occurring after reporting date to the extent that such events confirm conditions existing at the
reporting date.

The Group reviews on a continuous basis the product movement, changes in customer demands
and introductions of new products to identify inventories which are to be written down to its net
realizable values. The write-down of inventories is reviewed periodically to reflect the accurate
valuation in the financial records. An increase in write-down of inventories would increase the
recorded cost of sales and decrease current assets.

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

12. Trade and other receivables

31 January 30 April
2022 2021
US$’000 US$’000

Trade receivables 209,727 165,370

Nontrade receivables 34,514 28,903
Allowance for expected credit loss – trade (4,844) (4,801)
Allowance for expected credit loss – nontrade (4,409) (4,423)
Trade and other receivables 234,988 185,049

Set out below is the expected credit risk exposure on the Group’s trade receivables using
simplified approach (provision matrix):

31 January 2022
Days past due
30-60 61-120 Over 120
Current <30 days Total
days days days
US’000s US’000s US’000s US’000s US’000s US’000s
Trade receivables 104,178 75,098 8,968 7,261 14,222 209,727
Expected credit loss
rate 0.00% 0.00% 0.00% 0.00% 34.06% –
Expected credit loss – – – – 4,844 4,844

30 April 2021
Days past due
30-60 61-120 Over 120
Current <30 days Total
days days days
US’000s US’000s US’000s US’000s US’000s US’000s
Trade receivables 83,812 64,945 4,206 2,059 10,348 165,370
Expected credit loss
rate 0.00% 0.00% 0.00% 0.00% 46.40% –
Expected credit loss – – – – 4,801 4,801

The recorded allowance for expected credit loss falls within the Group’s historical experience in
the collection of trade and other receivables. Therefore, Management believes that there is no
significant additional credit risk beyond what has been recorded.

Source of estimation uncertainty

The Group maintains an allowance for impairment of accounts receivable at a level considered
adequate to provide for potential uncollectible receivables based on the applicable expected
credit loss (ECL) methodology. The level of this allowance is evaluated by the Group on the
basis of factors that affect the collectability of the accounts. These factors include, but are not
limited to, the length of the Group’s relationship with debtors, their payment behavior and
known market factors. The Group reviews the age and status of receivables, and identifies
accounts that are to be provided with allowance on a continuous basis. Additionally, allowance
is also determined, through a provision matrix based on the Group’s historical credit loss
experience, adjusted for forward-looking factors specific to the debtors and the economic
environment. The amount and timing of recorded expenses for any period would differ if the
Group made different judgement or utilized different estimates. An increase in the Group’s

FS25
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

allowance for impairment would increase the Group’s recorded operating expenses and decrease
current assets.

13. Prepaid expenses and other current assets

31 January 30 April
2022 2021
US$’000 US$’000

Prepaid expenses 26,317 29,875

Down payment to contractors and suppliers 11,574 4,090
Derivative asset 1,571 1,694
Short-term placements 1,298 1,327
Others 262 300
41,022 37,286

Prepaid expenses consist of advance payments for insurance, advertising, rent and taxes, among
others.

Prepaid expenses as at 31 January 2022 include filing fees related to Initial Public Offering
(IPO) registration of Del Monte Philippines, Inc. (DMPI) with the Philippine SEC and
Philippine Stock Exchange (PSE) totaling US$1.3 million. Management assessed that the
amount can be applied when the IPO happens.

On 4 August 2021, the Company decided to defer the planned IPO of DMPI with PSE (see
Note 35).

Down payment to contractors and suppliers pertains to advance payments for the purchase of
materials and supplies that will be used for operations.

Short-term placements have maturities of five months to nine months and earn interest at
0.75%-1.00% per annum.

Derivative

The Group uses commodity swaps and foreign currency forward contracts to hedge market risks
relating to possible adverse changes in commodity costs and foreign currency exchange rates.
The Group continually monitors its positions and the credit rating of the counterparties involved
to mitigate credit exposure to any party.

As at 31 January 2022 and 30 April 2021, the Group designated each of its derivative contracts,
except for call option, as a hedge of a highly probable forecasted transaction or of the variability
of cash flows to be received or paid related to a recognized asset or liability (“cash flow
hedge”).

FS26
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

The following fair value of cash flow hedges were outstanding for the Group:

31 January 30 April
2022 2021
Note US$’000 US$’000

Peso Contract 386 (80)

Commodity contracts 1,132 1,694
Total 1,518 1,614

Included in:
Prepaid expenses and other current assets 1,571 1,694
Trade and other current liabilities 20 (53) (80)
1,518 1,614

The notional amounts of the Group’s commodity contracts were as follows as of

31 January 2022 and 30 April 2021:

31 January 30 April
2022 2021
US$’000 US$’000
Natural gas – Metric Million British Thermal Unit (MMBTU) 64 1,065
Diesel (gallons) 1,131 3,663

Foreign Currency

From time to time, the Group manages its exposure to fluctuations in foreign currency exchange
rates by entering into forward contracts to cover a portion of its projected expenditures paid in
local currency. These contracts may have a term of up to 24 months. The Group accounted for
these contracts as cash flow hedges.

31 January 30 April
2022 2021
US$’000 US$’000
Mexican pesos 537,639 379,628

FS27
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Amounts Relating to Hedged Items

The amounts at the reporting date relating to items designated as hedged items are as follows:

31 January 2022
Balances remaining in
the cash flow hedge
reserve from hedging
relationships for which
Change in value used
hedge accounting is no
for calculating hedge Cash flow hedge
longer applied
effectiveness reserve
US$’000 US$’000 US$’000
Commodity price risk
Inventory purchases 4,534 (522) –

Foreign exchange risk

Inventory purchases (188) 1,346 –

30 April 2021
Balances remaining in
the cash flow hedge
reserve from hedging
relationships for which
Change in value used
hedge accounting is no
for calculating hedge Cash flow hedge
longer applied
effectiveness reserve
US$’000 US$’000 US$’000
Interest rate risk
Variable rate instruments 240 – –

Commodity price risk

Inventory purchases (6,363) 1,279 –

Foreign exchange risk

Inventory purchases 3,552 (61) –

FS28
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

Amounts Relating to Hedging Instruments (cont’d)

The amounts relating to items designated as hedging instruments and hedge ineffectiveness are as follows:

31 January 2022 During the first nine months of fiscal 2022

Line item in the statement of Change in the value Amount reclassified Line item in profit
financial position where the of hedge instrument from hedging reserve or loss affected by
Notional amount Carrying amount hedged instrument is included recognized in OCI to profit or loss the reclassification
Assets Liabilities
US$’000
Commodity price risk
Commodity
contracts

Natural gas 64 – (53) Trade and Other (1,915) (1,668) Cost of sales
(MMBTU) Current Liabilities
Prepaid and Other
Diesel (gallons) 1,131 1,185 – Current Assets (2,618) (1,960) Cost of sales

Foreign exchange risk

Foreign currency 537,639 386 – Prepaid and Other 188 (194) Cost of sales
forwards Current Assets

FS29
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
As at 31 January 2022 and for the three-month and nine-month periods ended 31 January 2022 and 2021

30 April 2021 During fiscal 2021

Line item in the statement of Change in the value Amount reclassified Line item in profit
financial position where the of hedge instrument from hedging reserve or loss affected by
Notional amount Carrying amount hedged instrument is included recognized in OCI to profit or loss the reclassification
Assets Liabilities
US$’000
Interest rate risk
Interest rate swaps – – – Derivative liabilities – Current (240) –

Commodity price risk

Commodity
contracts

Natural gas 1,065 194 – Prepaid and Other (1,875) (1,663) Cost of sales
(MMBTU) Current Assets
Prepaid and Other
Diesel (gallons) 3,663 1,500 – Current Assets (975) (1,152) Cost of sales

Foreign exchange risk

Foreign currency 379,628 – (80) Derivative Liabilities (35) 111 Cost of sales
forwards – Current Liabilities

FS30
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

Hedging Reserves

The following table provides a reconciliation by risk category of the hedging reserve and
analysis of OCI items, net of tax, resulting from cash flow hedge accounting:

Group
31 January 30 April
2022 2021
US$’000 US$’000
Balance at beginning of year 1,218 (2,016)
Changes in fair value:
- Commodity risk (4,534) 6,363
- Foreign exchange risk 188 (3,552)
- Interest rate risk – (240)
Amount reclassified to profit or loss
- Foreign exchange risk 194 3,472
- Commodity risk 3,628 (1,760)
- Interest rate risk – –
Tax movements on reserves during the year 128 (1,049)
Balance at end of year 822 1,218

14. Cash and cash equivalents

31 January 30 April
2022 2021
US$’000 US$’000

Cash on hand 74 68
Cash in banks 33,264 28,478
Cash equivalents – 889
Cash and cash equivalents 33,338 29,435

Certain cash in bank accounts earn interest at floating rates based on daily bank deposit rates
ranging from 0.01% to 0.50% per annum for the period (30 April 2021: 0.01% to 0.50% per
annum). Cash equivalents are short-term placements which are made for varying periods of up
to three months depending on the immediate cash requirements of the Group and earn interest
rate of 0.75% to 0.88% per annum in fiscal year 2022 (30 April 2021: 0.88% to 2.00% per
annum).

FS31
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

15. Reserves

31 January 30 April
2022 2021
US$’000 US$’000

Translation reserve (91,002) (81,971)

Remeasurement of retirement plan 35,074 35,049
Revaluation reserve 14,278 14,278
Hedging reserve 853 1,224
Share option reserve 1,753 1,753
Reserve for own shares (286) (286)
(39,330) (29,953)

The translation reserve comprises foreign exchange differences arising from the translation of
the financial statements of subsidiaries and joint ventures with functional currencies other than
US dollar.

The remeasurement of retirement plan relates to actuarial gains and losses for the defined
benefit plans and return on plan assets, excluding amounts included in net interest on the net
defined benefit liability (asset).

The revaluation reserve relates to surplus on the revaluation of freehold land of the Group.

The hedging reserve comprises the effective portion of the cumulative net change in the fair
value of hedging instruments used in cash flow hedges pending subsequent recognition in profit
or loss as the hedged cash flows affect the consolidated statements of income of the Group.

The share option reserve comprises the cumulative value of employee services received for the
issue of share options.

The reserve for the Company’s own shares comprises the cost of the Company’s shares held by
the Group. As at 31 January 2022 and 30 April 2021, the Group held 975,802 of the Company’s
shares.

16. Loans and borrowings

31 January 30 April
2022 2021
US$’000 US$’000
Current liabilities
Unsecured bank loans 173,665 256,125
Secured bank loans 286,827 76,328
460,492 332,453

Non-current liabilities
Unsecured bank loans 362,902 291,014
Secured bank loans 659,835 662,276
1,022,737 953,290
1,483,229 1,285,743

FS32
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

Terms and debt repayment schedule

Terms and conditions of outstanding loans and borrowings are as follows:

31 January 2022 30 April 2021

Nominal Year of Face Carrying Face Carrying
Currency interest rate maturity value amount value amount
% p. a. US$’000 US$’000 US$’000 US$’000
Group
Secured bank loans PHP 4.125% 2025 29,334 29,188 31,150 30,950
Unsecured bank PHP 2.40%-3.00% 2022- 123,594 123,432 129,164 128,950
loans 2025
Unsecured 3Y PHP 3.4840% 2023 114,063 112,969 121,185 119,473
bonds
Unsecured 5Y PHP 3.7563% 2025 12,631 12,470 13,346 13,216
bonds
Unsecured bank USD 1.61%-2.75% 2022- 199,428 199,428 285,500 285,500
loans 2024
Secured bank loans USD 3.52% 2023 100,000 99,177 100,000 98,671
Secured bridging USD 3.06% 2023 67,500 67,482 75,000 75,000
loan
Unsecured senior USD 3.75% 2024 90,000 88,268 – –
notes
Secured senior USD 11.875% 2025 500,000 471,488 500,000 465,155
notes
Secured bank loan USD Swingline B - 5% 2021- 284,500 279,327 75,100 68,828
under ABL ABL Base B - 2023
Credit 5%
Agreement Higher of Libor
or 1% + 2.75% or
total of 3.75%
1,521,050 1,483,229 1,330,445 1,285,743

The balance of unamortized debt issuance cost follows:

Nine months ended Year ended

31 January 2022 30 April 2021
US$’000 US$’000

At beginning of the period/year 44,702 30

Additions 2,163 56,153
Amortization (9,044) (11,481)
At end of the period/year 37,821 44,702

FS33
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

Long Term Borrowings

Interest paid
Outstanding
1 May 2021
Original Balance as of Interest Payment Terms
Long-term Year of to 31
Principal 31 January Rate (e.g., annually,
Borrowings Maturity January
(In ‘000) 2022 % p.a. quarterly, etc.)
2022
(In ‘000)
(In ‘000)
Semi-annual
Secured
interest payments
Senior USD 500,000 USD 500,000 11.875% 2025 USD 59,375
and principal on
Notes
maturity date.
3Y Quarterly interest
Unsecured 3.4840% 2023/ payments and
PHP 6,478,460 PHP 6,478,460 PHP 137,950
Bonds 5Y 2025 principal on
3.7563% maturity date.
Quarterly interest
payment and
Secured principal 10% on
Bridging USD 75,000 USD 67,500 3.06% 2023 August 2021, USD 2,196
Loan 10% on August
2022 and 80% on
maturity date.
Quarterly interest
payment and
principal 15% on
Unsecured 11 equal quarterly
USD 75,000 USD 73,977 1.74% 2024 USD 944
Loan installments
starting January
2022 and 85% on
maturity date.
Semi-annual
Secured interest payments
USD 100,000 USD 100,000 3.52% 2023 USD 3,555
Loan and principal on
maturity date.
Quarterly interest
payment; and
principal on eight
Unsecured
PHP 1,500,000 PHP 1,500,000 3.00% 2025 quarterly PHP 35,149
Loan
installments
starting February
2024
Quarterly interest
payment; and
principal on nine
Secured
PHP 1,500,000 PHP 1,500,000 4.125% 2025 quarterly PHP 45,983
Loan
installments
starting August
2023
Quarterly interest
payment and
principal 5%,
Unsecured
USD 57,300 USD 55,151 2.75% 2024 10% and 85% in USD 1,197
Loan
fiscal year 2022,
2023 and 2024,
respectively.
Semi-annual
Unsecured
interest payments
Senior USD 90,000 USD 90,000 3.75% 2024 nil
and principal on
Notes
maturity date.

FS34
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

DMPL Senior Notes

On 9 December 2021, DMPL issued 3-year unrated Senior Notes amounting to US$90.0 million
due 2024 with a 3.75% fixed coupon rate payable semi-annually commencing on 9 June 2022.
The proceeds from the bonds are intended to refinance certain indebtedness including
redemption of the Company’s preferred shares in April 2022.

ABL Credit Agreement

On 15 May 2020, Del Monte Foods Holdings Limited (DMFHL) entered into an agreement to
refinance the ABL Credit Agreement with JP Morgan Chase as the administrative agent, and
other lenders and agents parties thereto, to provide for senior secured financing of up to
$450.0 million, subject to availability under the borrowing base, with a term of three years until
15 May 2023. On 15 May 2020, $100.2 million was drawn on this facility. Loans under the
ABL Credit Agreement bear interest based on either the Eurodollar rate or the alternative base
rate, plus an applicable margin.

On 29 April 2021, the ABL Credit Agreement was extended to five years to the earliest of
(a) 29 April 2026 and (b) 91 days prior to the maturity of the Senior Secured Notes or any
Refinancing Indebtedness in respect thereof.

As at 31 January 2022, there were US$284.5 million (30 April 2021: US$75.1 million) of loans
outstanding and US$24.6 million of letters of credit issued (30 April 2021: USS$24.6 million).
The net availability to DMFHL Group under the ABL Credit Agreement was US$140.9 million
as at 31 January 2022 (30 April 2021: US$350.3 million). The weighted average interest rate
was approximately 4.25% on 31 January 2022 (30 April 2021: 5.12%). The ABL Credit
Agreement provided for a sub limit for letters of credit and for borrowings on same day notice,
referred to as “swingline loans.”

Security interests

Restrictive and Financial Covenants. The ABL Credit Agreement includes restrictive
covenants limiting the DMFHL Group’s ability, and the ability of the DMFHL Group’s
restricted subsidiaries, to incur additional indebtedness, create liens, engage in mergers or
consolidations, sell or transfer assets, pay dividends and distributions or repurchase the DMFHL
Group’s capital stock, make investments, loans or advances, prepay certain indebtedness,
engage in certain transactions with affiliates, amend agreements governing certain subordinated
indebtedness adverse to the lenders, and change the Group’s lines of business.

Financial Maintenance Covenants. The ABL Credit Agreement generally does not require that
the DMFHL Group including DMFI comply with financial maintenance covenants.

Unsecured Bank Loans

Certain unsecured bank loan agreements contain various affirmative and negative covenants that
are typical of these types of facilities such as financial covenants relating to required debt-to-
equity ratio, interest cover and maximum annual capital expenditure restrictions. These
covenants include requirements for delivery of periodic financial information and restrictions
and limitations on indebtedness, investments, acquisitions, guarantees, liens, asset sales,
disposals, mergers, changes in business, dividends and other transfers.

The Group is compliant with its loan covenants as at 31 January 2022 and 30 April 2021.

FS35
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

17. Other noncurrent liabilities

31 January 30 April
2022 2021
US$’000 US$’000

Workers’ compensation 15,190 17,150

Accrued vendors liabilities 471 553
Other payables – 994
15,661 18,697

Workers’ compensation would cover liabilities for wage replacement and medical benefits to
employees injured in the course of employment in exchange for mandatory relinquishment of
the employee's right to sue his or her employer for tort or negligence.

The current portion of workers’ compensation is included in “Trade and other current liabilities”
in the consolidated statement of financial position (see note 20).

18. Employee Benefits

Certain Group companies contribute to the post-employment defined benefit plans such as the
following:

The DMPI Plan

DMPI has both funded defined benefit and defined contribution retirement plans (collectively
the “Plan”) which cover all of its regular employees. Contributions and costs are determined in
accordance with the actuarial study made for the Plan. Annual cost is determined using the
projected unit credit method. DMPI’s latest actuarial valuation date was 30 April 2021.
Valuations are obtained on a periodic basis.

Starting on the date of membership of an employee in the Plan, DMPI shall contribute to the
retirement fund 7.00% of the member’s salary as defined every month. In addition, DMPI shall
contribute periodically to the fund the amounts which may be required to meet the guaranteed
minimum benefit provision of the plan. Such contributions shall not be allocated nor credited to
the individual accounts of the members, but shall be retained in a separate account to be used in
cases where the guaranteed minimum benefit applies.

Benefits are based on the total amount of contributions and earnings credited to the personal
retirement account of the plan member at the time of separation or the 125% of the final basis
salary multiplied by the number of credited years of service under the plan, whichever is higher.
The manner of payment is lump sum, payable immediately.

The retirement plan meets the minimum retirement benefit specified under Republic Act (RA)
No. 7641, The Philippine Retirement Pay Law.

The fund is administered by a trustee bank under the supervision of the Board of Trustees of the
Plan which is responsible for the Plan’s investment strategy.

DMPI does not expect to make contributions to the plan in fiscal year 2022.

FS36
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

The ROHQ Plan

The ROHQ has a funded defined benefit plan wherein starting on the date of membership of an
employee in the ROHQ Plan, the ROHQ contributes to the retirement fund 7.00% of the
member’s salary every month. In addition, the ROHQ contributes periodically to the fund the
amounts which may be required to meet the plan’s guaranteed minimum benefit provision.
Such contributions shall not be allocated nor credited to the individual accounts of the members,
but shall be retained in a separate account to be used in cases where guaranteed minimum
benefit applies.

Benefits are based on the total amount of contributions and earnings credited to the personal
retirement account of the plan member at the time of separation or 125% of the final basis salary
multiplied by the number of credited years of service under the plan, whichever is higher. The
manner of payment is lump sum, payable on retirement. The ROHQ’s annual contribution to
the pension plan consists of payments covering the current service cost for the year plus
payments towards funding the actuarial accrued liability, if any.

The ROHQ does not expect to make contributions to the plan in fiscal year 2022.

The DMFI Plan

DMFI sponsors a qualified defined benefit pension plan (the “DMFI Plan”) and several
unfunded defined benefit post-retirement plans providing certain medical, dental, and life
insurance benefits to eligible retired, salaried, non-union hourly and union employees. The
DMFI Plan comprises of two parts:

 The first part is a cash balance plan (“Part B”) which provides benefits for eligible salaried
employees and provides that a participant’s benefit derives from the accumulation of
monthly compensation and interest credits. Compensation credits are calculated based upon
the participant’s eligible compensation and age each month. Interest credits are calculated
each month by applying an interest factor to the previous month’s ending balance.
Participants may elect to receive their benefit in the form of an annuity or a lump sum.
Part B of the plan was frozen to new participants effective 31 December 2016, which the
active participation of certain participants was grandfathered subject to meeting participation
requirements.

 The second part is an arrangement which provides for grandfathered and suspended hourly
participants a traditional pension benefit based upon service, final average compensation and
age at termination. This plan was frozen since 31 December 1995, which the active
participation of certain participants was grandfathered and the active participation of other
participants was suspended.

DMFI currently meets and plans to continue to meet the minimum funding levels required under
local legislation, which imposes certain consequences on DMFI’s defined benefit plan if it does
not meet the minimum funding levels. DMFI has not made any contributions during the nine
months ended 31 January 2022 and fiscal year 2021.

In fiscal year 2020, there were amendments to the DMFI Plan and the post-retirement benefit
plan. Under these DMFI Plan amendments, certain benefits were eliminated effective
31 December 2019 and 30 April 2022 and the plan obligations associated with these
amendments decreased by US$9.1 million. Under the post-retirement amendments, certain
benefits will be eliminated effective 30 April 2022 and the plan obligations associated with this
amendment would be decreased by US$5.9 million. Both amendments were recognized

FS37
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

immediately in “General and administrative expenses” in the fiscal year 2020 consolidated
statements of income.

DMFI does not expect to make contributions to the plan in fiscal year 2022.

19. Environmental remediation liabilities

31 January 30 April
2022 2021
Note US$’000 US$’000

At beginning of the period/year 7,429 9,587

Provision made during the period/year – 486
Provisions used during the period/year – (375)
Provisions released during the period/year (4,026) (2,269)
Reclass to current portion 20 (3,200) –
At end of the period/year 203 7,429

The current portion of environmental liabilities of US$1.9 million is included in “Trade and
other current liabilities” in the consolidated statements of financial position (see note 20).

20. Trade and other current liabilities

31 January 30 April
2022 2021
Note US$’000 US$’000

Trade payables 156,362 142,188

Accrued operating expenses:
Interest 16,256 30,843
Advertising 14,210 10,853
Freight and warehousing 10,690 7,274
Trade promotions 10,063 8,764
Taxes and insurance 9,150 8,739
Professional fees 7,610 8,236
Utilities 4,164 3,584
Tinplate and consigned stocks 3,408 2,222
Salaries, bonuses and other employee benefits 2,350 4,566
Environmental remediation 1,862 260
Miscellaneous 8,531 12,170
Overdrafts 7,787 7,574
Accrued payroll expenses 5,144 4,812
Contract liabilities 3,066 543
Withheld from employees (taxes and social security cost) 1,164 1,548
Advances from customers 241 214
VAT payables 172 259
Derivative liabilities 53 80
Other payables 864 –
263,147 254,729
Accrued miscellaneous include management fees and other outside services, land and other
rental, credit card payable and other importation incidental costs.

FS38
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

21. Revenue

Disaggregation of revenue is presented in Note 4.

Contract balances

The following table provides information about trade receivables and contract liabilities from
contracts with customers.

31 January 30 April
2022 2021
Note US$’000 US$’000

Receivables, included in Trade and other receivables

- Gross of ECL allowance 12 209,727 165,370
Contract liabilities 20 1,164 543

Contract liabilities pertain to advances from customers which are generally expected to be
recognized as revenue within periods of less than one year. Accordingly, opening contract
liabilities are recognized within each reporting period. The Group applies the practical
expedient in paragraph 121 of IFRS 15 and does not disclose the aggregate amount of the
transaction price of unsatisfied or partially unsatisfied performance obligations as of the end of
the reporting period because its contracts have original expected durations of one year or less.

22. Income taxes

Three months ended Nine months ended

31 January 31 January
2022 2021 2022 2021
US$’000 US$’000 US$’000 US$’000

Current tax expense

- Current year 6,370 5,036 16,941 22,684

Deferred tax expense

- Origination and reversal of temporary
differences 4,161 7,043 17,051 1,149
10,531 12,079 33,992 23,833

FS39
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

Three months ended Nine months ended

31 January 31 January
2022 2021 2022 2021
US$’000 US$’000 US$’000 US$’000
Reconciliation of effective tax rate
Profit (loss) before taxation 41,002 47,484 127,220 82,523

Taxation on profit at applicable tax rates 7,755 9,819 23,736 17,309

Final tax on dividend 2,830 2,637 8,295 6,468
Non-deductible expenses (96) 191 1,766 1,873
Non-taxable income (2) (3) (5) (8)
Change in unrecognized deferred tax
asset – (624) – (2,058)
Others 44 59 200 249
10,531 12,079 33,992 23,833

Deferred tax assets and liabilities are attributable to the following:

Assets Liabilities
31 January 30 April 31 January 30 April
2022 2021 2022 2021
US$’000 US$’000 US$’000 US$’000
Group
Provisions 8,201 8,466 – –
Employee benefits 13,731 13,935 – –
Property, plant and equipment - net – – (17,033) (17,228)
Intangible assets and goodwill – – (87,603) (79,671)
Effective portion of changes in fair
value of cash flow hedges – – (267) (395)
Tax loss carry-forwards 158,241 166,114 – –
Inventories 2,127 2,127 – –
Biological assets – – (1,856) (1,796)
Interest 27,509 24,450 – –
Undistributed profits from subsidiaries – – (5,754) (2,168)
Charitable contributions 3,254 3,254 – –
Others 6,555 6,851 – –
Deferred tax assets (liabilities) 219,618 225,197 (112,513) (101,258)
Set off of tax (101,959) (94,659) 101,959 94,659
Deferred Taxes 117,659 130,538 (10,554) (6,599)

Nine months ended

31 January
2022 2021
US$’000 US$’000
Applicable tax rates
- Philippines (non-PEZA) 25% 30%
- Philippines (PEZA)* 5% 5%
- India 31% 31%
- Singapore 17% 17%
- United States of America 25% 25%
- Mexico 30% 30%
*based on gross profit for the year

FS40
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

Sources of estimation uncertainty

The Group has exposure to income taxes in several foreign jurisdictions. Significant judgement
is involved in determining the group-wide provision for income taxes. There are certain
transactions and computations for which the ultimate tax determination is uncertain during the
ordinary course of business. The Group recognizes liabilities for expected tax issues based on
estimates of whether additional taxes will be due. Where the final tax outcome of these matters
is different from the amounts that were initially recognized, such differences will impact the
income tax and deferred tax provisions in the period in which such determination is made.

23. Stock option and incentive plans

The Company adopted the Del Monte Pacific Executive Share Option Plan 2016
(“ESOP 2016”), which was approved by the shareholders at the general meeting held on
30 August 2016. The purpose of the ESOP 2016 is to provide an opportunity for Group
executives and directors to participate in the equity of the Company in order to motivate them to
excel in their performance. The ESOP 2016 shall be valid for a period of 10 years; however, it
has yet to be implemented, and no options had been granted to date.

The ESOP 2016 is administered by the Remuneration Share Option Committee (RSOC).

Fair value of share options/awards and assumptions

Date of grant of 7 March 30 April 1 July 12 May 29 April 30 April 22 August 1 July
options/awards 2008 2013 2015 2009 2011 2013 2013 2015
<----------------ESOP------------> <--------------- Del Monte Pacific RSP ------------->
Fair value at
measurement
date US$0.12 US$0.18 US$0.29 US$0.37 US$0.40 US$0.18 US$0.65 US$0.29
Share price
(Singapore
Dollars)
at grant date 0.615 0.810 0.385 0.540 0.485 0.810 0.840 0.385
Exercise price
(Singapore
Dollars) 0.627 0.627 0.578 – – – – –
Expected volatility 5.00% 2.00% 2.00% – – – – –
Time to maturity 2 years 2 years 2 years – – – – –
Risk-free interest
rate 3.31% 1.51% 2.51% – – – – –

The expected volatility is based on the historic volatility (calculated based on the weighted
average expected life of the share options), adjusted for any expected changes to future
volatility due to publicly available information.

There are no market conditions associated with the share option grants. Service conditions and
non-market performance conditions are not taken into account in the measurement of the fair
value of the services to be received at the grant date.

FS41
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

Del Monte Foods Holding Equity Compensation Plan

During the second quarter of fiscal year 2016, Del Monte Foods Holdings, Inc. (DMFHI)
established a new plan, the 2015 Executive Long-Term Incentive Plan (“LTIP”), which intends
to provide key executives with the opportunity to receive grants of stock options, cash-based
awards and other stock-based awards. 9,000,000 shares of common stock of DMFHI were
reserved for grant under the plan. In fiscal year 2016, DMFHL granted nonqualified stock
options and cash incentive awards under the plan.

In September 2016, the authorized shares reserved for grant under the plan was increased from
9,000,000 to 15,000,000. As at 31 January 2022 and 30 April 2021, 15,000,000 and 14,776,500
shares respectively, shares were available for future grant.

The fair value for stock options granted was estimated at the date of grant using a Black-Scholes
option pricing model. This model estimates the fair value of the options based on a number of
assumptions, such as expected option life, interest rates, the current fair market value and
expected volatility of common stock and expected dividends. The expected term of options
granted was based on the “simplified” method. Expected stock price volatility was determined
based on the historical volatilities of comparable companies over a historical period that
matches the expected life of the options. The risk-free interest rate was based on the expected
U.S. Treasury rate over the expected life. The dividend yield was based on the expectation that
no dividends will be paid.

The following table presents the weighted-average assumptions for performance-based stock
options granted for the periods indicated:

3 November 2015
Expected life (in years) 5.5
Expected volatility 38.49%
Risk-free interest rate 1.64%

Stock option activity and related information during the periods indicated are as follows:

31 January 2022 30 April 2021

Weighted Weighted
Number Number
average average
of options of options
exercise price exercise price
Outstanding at beginning of year 223,500 5 283,500 5
Cancelled (223,500) 5 (60,000) 5
Forfeited – – – 5
Outstanding at end of year – – 223,500 5
Exercisable at end of year – – 223,500 –

FS42
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

24. Accounting classification and fair values

Fair values versus carrying amounts

The fair values of financial assets and liabilities, together with the carrying amounts shown in
the statement of financial position, are as follows:

Financial
assets at Other Total
amortized financial carrying
cost Derivatives liabilities amount Fair value
Note US$’000 US$’000 US$’000 US$’000 US$’000
31 January 2022
Cash and cash equivalents 14 33,338 – – 33,338 33,338
Trade and other receivables* 9, 12 238,294 – – 238,294 238,294
Short-term placements 13 1,298 – – 1,298 1,298
Notes receivables 9 1,000 – – 1,000 1,000
Refundable deposits** 9 2,100 – – 2,100 2,100
Derivative assets 13 – 1,571 – 1,571 1,571
276,030 1,571 – 277,601 277,601
Lease liabilities 30 – – 106,363 106,363 106,363
Loans and borrowings*** 16 – – 1,483,229 1,483,229 1,561,444
Trade and other current
liabilities**** 20 – – 258,450 258,450 258,450
Derivative liabilities 13, 20 – 54 – 54 54
– 54 1,848,042 1,848,096 1,926,311
* includes noncurrent portion of receivables from sale and leaseback and lease receivables
** included under advance rentals and deposits
*** for basis of fair value of lease liabilities and loans and borrowings (see note 25)
**** excludes derivative liabilities, advances from customers, contract liabilities, withheld from employees (taxes and social
security cost) and VAT payables

Financial
assets at Other Total
amortized financial carrying
cost Derivatives liabilities amount Fair value
Note US$’000 US$’000 US$’000 US$’000 US$’000
30 April 2021
Cash and cash equivalents 14 29,435 – – 29,435 29,435
Trade and other receivables* 9, 12 188,955 – – 188,955 188,955
Short-term placements 13 1,327 – – 1,327 1,327
Notes receivables 9 1,000 – – 1,000 1,000
Refundable deposits** 9 2,066 – – 2,066 2,066
Derivative assets 13 – 1,694 – 1,694 1,694
222,783 1,694 – 224,477 224,477
Lease liabilities 30 – – 128,803 128,803 144,092
Loans and borrowings*** 16 – – 1,285,743 1,285,743 1,473,367
Trade and other current
liabilities**** 20 – – 252,085 252,085 252,085
Derivative liabilities 17, 20 – 80 – 80 80
– 80 1,666,631 1,666,711 1,869,624
* includes noncurrent portion of receivables from sale and leaseback and lease receivables
** included under advance rentals and deposits
*** for basis of fair value of lease liabilities and loans and borrowings (see note 25)
**** excludes derivative liabilities, advances from customers, contract liabilities, withheld from employees (taxes and social
security cost) and VAT payables

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

25. Determination of fair values

Fair value hierarchy

The table below analyses recurring non-financial assets carried at fair value. The different
levels are defined as follows:

 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the
Group can access at the measurement date.
 Level 2: inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly.
 Level 3: unobservable inputs for the asset or liability.

For assets and liabilities that are recognized in the consolidated financial statements on a
recurring basis, the Group determines whether transfers have occurred between Levels in the
hierarchy by re-assessing the categorization at the end of each reporting period.

For purposes of the fair value disclosure, the Group has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level
of the fair value hierarchy, as explained above.

31 January 2022
Note Level 1 Level 2 Level 3 Totals
Financial assets
Derivative assets 13 – 1,571 – 1,571
Notes receivable 9 – – 1,000 1,000
Non-financial assets
Fair value of agricultural produce
harvested under inventories – – 4,109 4,109
Fair value of agricultural produce 10 – – 45,693 45,693
Freehold land 6 – – 53,683 53,683
Financial liabilities
Derivative liabilities 13, 20 – 54 – 54
Lease liabilities – – 106,363 106,363
Loans and borrowings – 993,590 567,854 1,561,444

30 April 2021
Note Level 1 Level 2 Level 3 Totals
Financial assets
Derivative assets 13 – 1,694 – 1,694
Notes receivable 9 – – 1,000 1,000
Non-financial assets
Fair value of agricultural produce
harvested under inventories – – 5,389 5,389
Fair value of agricultural produce 10 – – 44,913 44,913
Freehold land 6 – – 54,609 54,609
Financial liabilities
Derivative liabilities 13, 20 – 80 – 80
Lease liabilities – – 144,092 144,092
Loans and borrowings – 880,845 592,522 1,473,367

During the period, there were no transfers between Level 1 and Level 2 fair value
measurements, and no transfers into and out of Level 3 fair value measurements.

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

A number of the Group’s accounting policies and disclosures require the determination of fair
value, for both financial and non-financial assets and liabilities. Fair values have been
determined for measurement and/or disclosure purposes based on the following methods.

Financial instruments measured at fair value

Type Valuation technique

Commodities contracts Market comparison technique: The commodities are traded
over-the-counter and are valued based on the Chicago Board of Trade
quoted prices for similar instruments in active markets or corroborated
by observable market data available from the Energy Information
Administration. The values of these contracts are based on the daily
settlement prices published by the exchanges on which the contracts
are traded.
Derivative liabilities The estimated fair value of the additional Redeemable and
Controllable Preference Shares (RCPS) and call option as at
31 January 2021, is based on the Cox-Ross-Rubinstein (CRR)
binomial tree model of valuing derivatives. The value of these
derivatives is driven primarily by DMPI’s forecasted net income
which is not based on observable market data.

Financial instruments not measured at fair value

Type Valuation technique

Financial liabilities, note The fair value of the secured senior notes, first lien term loans, second
receivable and refundable lien term loans, note receivable and refundable deposits are calculated
deposits based on the present value of future principal and interest cash flows,
discounted at the market rate of interest at the reporting date (Level 2).
Other financial assets and The notional amounts of financial assets and liabilities with maturity
liabilities of less than one year (including trade and other receivables, cash and
cash equivalents, and trade and other payables) are, because of the
short period to maturity, assumed to approximate their fair values.

Other non-financial assets

Assets Valuation technique Significant unobservable inputs

Freehold land The fair value of freehold land is The unobservable inputs used to
determined by external, independent determine market value are the net
property valuers, having appropriate selling prices, sizes, property
recognized professional qualifications and location and market values. Other
recent experience in the location and factors considered to determine
category of property being valued. market value are the desirability,
neighborhood, utility, terrain, and
The valuation method used is sales the time element involved.
comparison approach. This is a comparative
approach that considers the sales of similar The market value per square meter
or substitute properties and related market ranges from US$75.4 to US$79.3.
data and establish a value estimate by The market value per acre ranges
involving comparison (Level 3). from US$4,252 to US$94,556.
Livestock (cattle Sales Comparison Approach: the valuation The unobservable inputs are age,
for slaughter and model is based on selling price of livestock average weight and breed.
cut meat) of similar age, weight, breed and genetic
make-up (Level 3).

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

Assets Valuation technique Significant unobservable inputs

Harvested crops – The fair values of harvested crops are based The unobservable input is the
sold as fresh fruits on the most reliable estimate of selling estimated pineapple selling price
prices, in both local and international per ton specific for fresh products.
markets at the point of harvest. The market
price is derived from average sales price of
the fresh fruit reduced by costs to sell
(Level 3).
Harvested crops – The fair values of harvested crops are based The unobservable input is the
used in processed on the most reliable estimate of market estimated pineapple selling price
products prices, in both local and international and gross margin per ton specific
markets at the point of harvest. The market for processed products.
price is derived from average sales price of
the processed product reduced by costs to
sell (concentrates, pineapple beverages,
sliced pineapples, etc.) and adjusted for
margin associated to further processing
(Level 3).
Unharvested crops The growing produce are measured at fair The unobservable inputs are
– fruits growing value from the time of maturity of the estimated pineapple selling price
on the bearer bearer plant until harvest. Management used and gross margin per ton for fresh
plants future selling prices and gross margin of and processed products, estimated
finished goods, adjusted to remove the volume of harvest and future
margin associated to further processing, less growing costs.
future growing costs applied to the
estimated volume of harvest as the basis of
fair value.

26. Profit for the period

The following non-cash items have been included in arriving at profit for the period:

Three months ended Nine months ended

Note 31 January 31 January
2022 2021 2022 2021
US$’000 US$’000 US$’000 US$’000

Provision for inventory

obsolescence 20 288 759 1,583
Provision of allowance for
ECL (trade and nontrade) (106) (141) (80) (28)
Amortization of intangible assets 7 1,663 1,663 4,988 4,988
Amortization of right-of-use assets 30 9,984 8,913 29,153 26,412
Depreciation of property, plant and
equipment 32,957 35,614 110,318 95,414

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

27. General and administrative expenses

This account consists of the following:

Three months ended Nine months ended

31 January 31 January
2022 2021 2022 2021
US$’000 US$’000 US$’000 US$’000

Personnel costs 20,058 20,820 57,614 59,368

Professional and contracted services 5,416 5,192 16,727 17,452
Computer costs 2,916 4,185 9,120 13,222
Facilities expense 2,063 2,165 6,376 6,654
Employee-related expenses 1,048 513 2,316 1,483
Postage and telephone 270 294 820 870
Research and development projects 223 190 563 569
Travelling and business meals 189 57 818 284
Utilities 153 157 472 460
Materials and supplies 93 83 287 323
Auto operating and maintenance costs 67 55 166 148
Machinery and equipment maintenance 61 153 268 414
Miscellaneous overhead 235 2,226 3,307 5,891
32,792 36,090 98,854 107,138

Miscellaneous overhead consists of donation, corporate initiatives, and other expenses.

28. Share capital

31 January 2022 30 April 2021

No. of shares No. of shares
(‘000) US$’000 (‘000) US$’000
Authorized:
Ordinary shares of US$0.01 each 3,000,000 30,000 3,000,000 30,000
Preference shares of US$1.00 each 600,000 600,000 600,000 600,000
3,600,000 630,000 3,600,000 630,000

Issued and fully paid:

Ordinary shares of US$0.01 each 1,944,936 19,449 1,944,936 19,449
Preference shares of US$1.00 each 30,000 30,000 30,000 30,000
1,974,936 49,449 1,974,936 49,449

The details of the Company’s preference shares are as follows:

Share Contributed
Share Capital Premium Capital
Preference Shares Par Value US$‘000 US$‘000 US$‘000
Series A-1 US$1.00 20,000 180,000 200,000
Series A-2 US$1.00 10,000 90,000 100,000
30,000 270,000 300,000

The Series A-1 and A-2 Preference shares are non-convertible, have no maturity date and are

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

redeemable on the option of the Company on the fifth anniversary from the issue date (the
“Step Up Date”) or on any dividend payment date thereafter. The preference shares bear a
cumulative non-participating cash dividend at an initial dividend rate of 6.625% and 6.50% per
annum for Series A-1 and A-2 preference shares, respectively, applicable from the issue date up
to the Step Up Date. The dividends are payable semi-annually every 7 April and 7 October of
each year, being the last day of each 6-month period following the issue date. If the preference
shares have not been redeemed on the Step Up Date, the dividend rate shall be adjusted on the
Step Up Date to the sum of the 10-year U.S. Treasury Bond rate (prevailing as of the Step Up
Date) plus initial spread plus margin of 2.50% per annum (the “Step Up Rate”). The initial
spread shall be 4.605% and 4.44% per annum for Series A-1 and A-2 preference shares,
respectively. However, if the initial dividend rate is higher than the applicable Step Up Rate,
there shall be no adjustment to the dividend rate, and the initial dividend rate shall continue to
be the dividend rate. The preference shares rank ahead of the ordinary shares in the event of a
liquidation.

Dividends

On 23 June 2021, the Company declared dividends of US$0.0120 per share to ordinary
shareholders on record as at 13 July 2021. The special dividend was paid on 27 July 2021,
except for the amount payable to NAPL which was fully settled in September 2021.

In October 2021, the Company paid dividends to the holders of the Series A-1 Preference
Shares at the fixed rate of 6.625% per annum, or equivalent to US$0.33125 per Series A-1
Preference and Series A-2 Preference Shares at the fixed rate of 6.5% per annum, or equivalent
to US$0.325 per series A-2 Preference Shares for the six-month period from April 2021 to
October 2021. The cash dividends were paid on 7 October 2021.

The Group does not declare dividends based on first quarter and third quarter results.
Undeclared preference dividends as at 31 January 2022 amounted to US$6.3 million.

Capital management

The Board of Directors’ policy is to maintain a sound capital base so as to maintain investor,
creditor and market confidence and to sustain future development of the business. The Group’s
capital comprises its share capital, retained earnings and total reserves as presented in the
consolidated statements of financial position. The Board monitors the return on capital, which
the Group defines as profit or loss for the year divided by total shareholders’ equity. The Board
also monitors the level of dividends paid to ordinary shareholders.

The bank loans of the Group contain various covenants with respect to capital maintenance and
ability to incur additional indebtedness. The Board ensures that loan covenants are considered
as part of its capital management through constant monitoring of covenant results through
interim and full year results.

There were no changes in the Group’s approach to capital management during the fiscal year.

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

29. Earnings per share

Basic and diluted earnings per share are calculated by dividing the net profit attributable to
owners of the Company by the weighted average number of ordinary shares in issue during the
period.

Three months ended Nine months ended

31 January 31 January
2022 2021 2022 2021
Earnings per share is based on:
Profit attributable to owners of the Company
(US$’000) 25,934 30,158 80,057 48,761
Cumulative preference share dividends
(US$’000) (4,938) (4,938) (14,813) (14,813)
20,996 25,220 65,244 33,948

Weighted average number of ordinary shares

(’000):
Outstanding ordinary shares at 1 Nov /1 May 1,943,960 1,943,960 1,943,960 1,943,960
Effect of shares awards granted – – – –
Weighted average number of ordinary shares at
end of period (basic) 1,943,960 1,943,960 1,943,960 1,943,960

Basic/diluted earnings per share (in U.S.

cents) 1.08 1.30 3.36 1,75

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

30. Leases

Group as a lessee

Set out below are the carrying amount of right-of-use assets recognized and the movements
during the period:
Buildings,
land
improvements Machineries
and leasehold and
improvements Land equipment Total
US$’000 US$’000 US$’000 US$’000
Cost/Valuation
At 1 May 2021 128,492 50,166 37,384 216,042
Additions 424 3,568 3,514 7,506
Disposals (33) – – (33)
Transfers/Adjustments – (1,038) – (1,038)
Currency realignment (2,114) (2,923) – (5,037)
At 31 January 2022 126,769 49,773 40,898 217,440

At 1 May 2020 116,023 51,277 38,450 205,750

Additions 11,926 8,290 46 20,262
Disposals – (735) (1,112) (1,847)
Transfers/Adjustments (591) (900) – (1,491)
Changes in lease term – (10,202) – (10,202)
Currency realignment 1,134 2,436 – 3,570
At 30 April 2021 128,492 50,166 37,384 216,042

Buildings,
land
improvements Machineries
and leasehold and
improvements Land equipment Total
US$’000 US$’000 US$’000 US$’000
Accumulated amortization
At 1 May 2021 43,632 14,521 22,681 80,834
Amortization 15,500 6,064 6,901 28,465
Transfers/Adjustments – (1,038) – (1,038)
Currency realignment (591) (1,017) – (1,608)
At 31 January 2022 58,541 18,530 29,582 106,653

At 1 May 2020 20,752 6,932 11,981 39,665

Amortization 22,725 7,974 10,700 41,399
Disposals – (735) – (735)
Transfers/Adjustments (43) (90) – (133)
Currency realignment 198 440 – 638
At 30 April 2021 43,632 14,521 22,681 80,834

Carrying amounts
At 31 January 2022 68,228 31,243 11,316 110,787
At 30 April 2021 84,860 35,645 14,703 135,208

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

The following are the amounts recognized in consolidated statements of income for three
months and nine months ended 31 January:

Three months ended Nine months ended

31 January 31 January
2022 2021 2022 2021
US$’000 US$’000 US$’000 US$’000
Amortization expense of right-of-use
assets 9,984 8,913 29,153 26,412
Interest expense on lease liabilities 1,445 1,773 4,640 5,608
Expenses relating to short-term leases 2,807 4,277 9,076 12,160
Variable lease payments 54 116 272 383
Total amount recognized in
consolidated statement of income 14,290 15,079 43,141 44,563

Amortization expense is net of amount capitalized to inventory amounting to US$1.0 million

and US$2.5 million for the nine months ended 31 January 2022 and 2021, respectively.

Set out below are the carrying amounts of lease liabilities and the movements during the period:

31 January 30 April
2022 2021
US$’000 US$’000

At the beginning of period/year 128,803 158,525

Additions 1,484 14,174
Accretion of interest 5,421 8,412
Payments of principal (26,389) (43,377)
Change in lease term – (10,199)
Adjustments – (1,119)
Terminations (7) (122)
Currency realignment (2,949) 2,509
At the end of period/year 106,363 128,803

Current 24,755 25,113

Non-current 81,608 103,690
106,363 128,803

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

31. Commitments and contingencies

Purchase commitments

The Group had entered into non-cancellable agreements with growers, co-packers, packaging
suppliers and other service providers with commitments generally ranging from one year to ten
years, to purchase certain quantities of raw products, including fruit, vegetables, tomatoes and
packaging services. As at the reporting date, the Group has commitments for future minimum
payments under non-cancellable agreements at approximately US$982.4 million.

Contingencies

DMPI has a pending case with the Court of Tax Appeals En Banc (CTA EB) pertaining to
deficiency withholding tax on wages assessment covering taxable year 2013 amounting to
=6.8 million (US$0.1 million). The Bureau of Internal Revenue filed a motion for
P
reconsideration on 31 January 2019 which was denied by the CTA 2nd Division in a resolution
dated 1 October 2019. The BIR has filed a petition for review with the CTA EB. As at
31 January 2022, the said petition is pending resolution.

DMPI could be subject to tax assessments which might arise from routine tax audits. In cases
where such assessments were disputed, DMPI's Management had assessed that DMPI would be
able to defend its position and the potential outcome is not expected to be material to the
consolidated financial statements.

As mentioned in Note 34, the Call Option Agreement with Sea Diner Holdings (S) Pte. Ltd.
(SEA Diner) provides for a conditional obligation for a subsidiary, Central American
Resources, Inc. (CARI), to sell additional shares to SEA Diner at an agreed price subject to
certain conditions (amount of IPO pre-market capitalisation and IPO consummation on or
before 30 April 2022). While Management had assessed that the Group’s derivative liability to
sell additional shares to SEA Diner has a carrying value of nil or immaterial as at
31 January 2022 and 30 April 2021 there is still a possibility that the IPO will not be
consummated and the call option will be exercised by Sea Diner.

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

32. Related parties

Related party transactions

For the purposes of these consolidated financial statements, parties are considered to be related
to the Group if the Group has the ability, directly or indirectly, to control the party or exercise
significant influence over the party in making financial and operating decisions, or vice versa, or
where the Group and the party are subject to common control or common significant influence.
Related parties may be individuals or other entities.

Other than disclosed elsewhere in the consolidated financial statements, transactions with
related parties are as follows:

Outstanding
Amount balance –
of the receivables/
transaction (payables)
Category/ Transaction Period US$’000 US$’000 Terms Conditions
Under Common Control
Shared information January 2022 86 41 Due and demandable; Unsecured;
technology & JY
Campos Centre Fit-out
services April 2021 185 308 non–interest bearing no impairment

Sale of apple juice January 2022 12 12 Due and demandable; Unsecured;

concentrate/materials April 2021 28 5 non–interest bearing no impairment

Purchases January 2022 54 (22) Due and demandable; Unsecured;

April 2021 64 9 non–interest bearing no impairment

Tollpack fees January 2022 – 21 Due and demandable; Unsecured;

April 2021 – 21 non–interest bearing no impairment

Security deposit January 2022 7 – Due and demandable; Unsecured;

April 2021 9 – non–interest bearing no impairment

Other Related Party

Management fees January 2022 52 66 Due and demandable; Unsecured;
from DMPI Retirement April 2021 69 2 non–interest bearing no impairment
fund

Rental to DMPI January 2022 1,359 (362) Due and demandable; Unsecured
Retirement April 2021 1,747 (7) non–interest bearing

Rental to NAI January 2022 484 (121) Due and demandable; Unsecured
Retirement April 2021 602 – non–interest bearing

Security deposit/ January 2022 830 830 Short-term; Unsecured;

Advances to NAI April 2021 703 – non–interest bearing no impairment

Advances to NAPL January 2022 – – Short-term; Unsecured;

April 2021 – – non–interest bearing no impairment

(continued on next page)

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

Outstanding
Amount balance –
of the receivables/
transaction (payables)
Category/ Transaction Period US$’000 US$’000 Terms Conditions

Joint Ventures
Sales January 2022 5,856 7,333 Due and demandable; Unsecured;
April 2021 6,303 4,475 non–interest bearing no impairment

Purchases January 2022 1,090 (954) Due and demandable; Unsecured;

April 2021 1,079 (987) non–interest bearing no impairment
January 2022 9,830 6,844
April 2021 10,789 3,826

The transactions with related parties are carried out on an arms-length basis and on normal
commercial terms consistent with the Group’s usual business practices and policies, which are
generally no more favorable to the related parties than those extended to unrelated parties.
Pricing for the sales of products is market driven, less certain allowances in accordance with
applicable business norms. For purchases, the Group’s policy is governed by the same internal
control procedures which detail matters such as the constitution of internal approving
authorities, their monetary jurisdictions, the number of vendors from whom bids are to be
obtained and the review procedures. The guiding principle is to objectively obtain the best
products and/or services on the best possible terms.

All outstanding balances at financial reporting date are unsecured, interest-free, to be settled in
cash, and are collectible or payable on demand. As at 31 January 2022 and 30 April 2021, the
Group has not made any provision for ECL relating to amounts owed by related parties.

33. Net Finance Expense

Three months ended Nine months ended

31 January 31 January
2022 2021 2022 2021
US$’000 US$’000 US$’000 US$’000
Finance income
Foreign exchange gain 533 578 1,808 3,844
Interest income from:
Bank deposits 15 7 37 36
Others 213 (92) 559 169
761 493 2,404 4,049
Finance expense
Interest expenses on:
Bank loans (23,106) (22,382) (67,434) (69,067)
Amortization of debt issue cost, discount (3,062) (3,013) (9,044) (8,367)
Leases (1,445) (1,773) (4,640) (5,608)
Foreign exchange loss (589) (48) (965) (162)
(28,202) (27,216) (82,083) (83,204)
Net finance expense (27,411) (26,723) (79,679) (79,155)

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

34. Share Purchase Agreement and Shareholders’ Agreement with Sea Diner Holdings
(S) Pte. Ltd.

On 24 January 2020, the Company, CARI, DMPI and SEA Diner, a company incorporated in
Singapore, entered into a Share Purchase Agreement and Shareholders’ Agreement whereby
CARI will sell 335,678,400 existing common shares equivalent to 12% ownership interest in
DMPI to SEA Diner for a consideration of US$120.0 million, subject to fulfilment of certain
conditions precedent. These common shares are convertible to voting, convertible, participating
and RCPS of DMPI.

The Board and the stockholders of DMPI approved the conversion of the convertible common
shares to RCPS subject to the completion of the transaction and the Enabling Resolutions which
further defined the terms of the RCPS on 3 March 2020. As at 30 April 2020, the Company,
CARI and DMPI had fulfilled the conditions precedent under the Share Purchase Agreement.
The closing date of the agreement is on 20 May 2020.

Terms of the RCPS

The terms of the RCPS are as follow:

 The RCPS holders participate in the dividends on an as-converted basis, that is, if common
shareholders are entitled to dividends, then the RCPS holders will correspondingly be
entitled to dividends on an as-converted basis.

 The investor as an RCPS holder will have proportional shareholder voting rights in DMPI
on an as-converted basis. There will also be certain reserved matters (for example, matters
not in the ordinary course of business) which the investor will have the right to approve.

 SEA Diner, as long as it holds RCPS, may, at any time, exercise its right to convert the
RCPS into common shares of DMPI at a ratio of one (1) RCPS to one (1) common share of
DMPI. The RCPS is automatically converted into common share in the event of IPO of
DMPI.

 Upon the occurrence of any of certain agreed “RCPS Default Events”, SEA Diner may
require the Company, CARI or DMPI to redeem all of the RCPS at the agreed redemption
price, which is the amount of RCPS consideration plus the agreed rate of return
(compounded on a per annum basis) calculated from 20 May 2020 up to the date of
redemption.

 In case of “Other Redemption Events”, redemption shall be subject to the mutual

agreement of the parties. If DMPI does not consent to the RCPS holder’s written
redemption request, the internal rate of return would be increased annually by 3%, and this
increased rate of return shall apply for each year that the RCPS remain outstanding and
shall be compounded on a per annum basis.

On 3 August 2020, the SEC approved the amendment of DMPI’s Articles of Incorporation to
reflect the conversion of 335,678,400 convertible common shares to RCPS and the removal of
the conversion feature of the remaining convertible common shares.

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 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

As at 30 April 2020 up to the time the RCPS were converted back to common shares on
2 March 2021, the Group is in compliance with the terms set out for the RCPS.

On 16 December 2020, CARI sold additional 27,973,200 common shares of DMPI to SEA
Diner for US$10 million, which increased the ownership of SEA Diner in DMPI to 13%.

On 1 March 2021, the SEC approved the amendment of DMPI’s Articles of Incorporation to
change DMPI’s authorized capital stock to common shares. Consequently, the 335,678,400
RCPS issued to SEA Diner were converted to 335,678,400 common shares.

Call Option Agreement

On 24 January 2020, the Company, CARI, DMPI and SEA Diner entered into a call option
agreement wherein SEA Diner would be entitled to a call option or the right to buy from CARI
additional DMPI shares (“Option Shares”). The exercise price for each Option Share is
US$0.357 (computed based on the DMPI equity valuation of US$1 billion / existing total issued
share capital of the DMPI shares of 2,797,320,003 as at the date of the Agreement).

The call option is exercisable within the Option Period which is a period:

(A) commencing on:

(i) in the event where an IPO of DMPI is consummated on or before 30 April 2022, and:

(a) such IPO of DMPI is consummated at a price per DMPI share which implies an
IPO pre-money market capitalisation of US$2,000,000,000 or lower, the date on
which such IPO of DMPI is consummated; or

(b) such IPO of DMPI is consummated at a price per DMPI share which implies an
IPO pre-money market capitalisation of more than US$2,000,000,000 and
following such IPO, the SEA Diner sells any DMPI shares at a price per DMPI
share which implies that DMPI’s valuation is at or lower than an IPO pre-money
market capitalisation of US$2,000,000,000, the date on which the SEA Diner
makes such sale of DMPI shares; or

(ii) 30 April 2022, if DMPI does not consummate an IPO on or before 30 April 2022; and

(B) ending on the earliest of:

(i) the date falling ten (10) years after the date of completion of the closing date;
(ii) the date falling five (5) years after the consummation of an IPO of DMPI; and
(iii) the date on which the SEA Diner receives an amount in respect of a redemption of its
DMPI shares pursuant to the Agreement that provides the SEA Diner with a rate of
return of no less than eight (8) per cent.

FS56
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

Source of estimation uncertainty

The Call Option Agreement may give rise to an obligation on the part of CARI to sell additional
shares to SEA Diner at the stipulated price subject to certain conditions stated therein.
Management assessed that the Group’s derivative liability to sell additional shares to SEA Diner
has a carrying value of nil or immaterial as at 31 January 2022 and 30 April 2021 as the
estimated pre-money market capitalisation has been established to be higher than the threshold
in the Agreement, and the exercise of the call option is subject to mutual consent of both parties.

The fair value of the derivative liability related to the call option is measured using
CRR binomial tree model. The inputs to this model are taken from a combination of observable
markets and unobservable market data. Changes in inputs about these factors could affect the
reported fair value of the derivative liabilities and impact profit or loss.

35. Other Matters

a. There were no known trends, demands, commitments, events or uncertainties that will have
a material impact on the Group’s liquidity.

b. There were no known trends, events or uncertainties that have had or that are reasonably
expected to have a favorable or unfavorable impact on net sales or revenues or income from
continuing operations.

c. Other than those disclosed in other notes, there were no known events that will trigger direct
or contingent financial obligation that is material to the Group, including any default or
acceleration of an obligation and there were no changes in contingent liabilities and
contingent assets since the last annual consolidated statements of financial position date

d. There were no material off-statements of financial position transactions, arrangements,

obligations (including contingent obligations), and other relationship of the Group with
unconsolidated entities or other persons created during the reporting period.

e. The effects of seasonality or cyclicality on the interim operations of the Group’s businesses
are explained in Note 5, Seasonality of operations.

f. The Group’s material commitments for capital expenditure projects have been approved but
are still ongoing and not yet completed as of end of 31 January 2022 These consist of
construction, acquisition, upgrade or repair of fixed assets needed for normal operations of
the business. The said projects will be carried forward to the next quarter until its
completion. The fund to be used for these projects will come from available cash, short-
term loans and long-term loans.

g. The Group is the subject of, or a party to, various suits and pending or threatened litigations.
While it is not feasible to predict or determine the ultimate outcome of these matters, the
Group believes that none of these legal proceedings will have a material adverse effect on
its consolidated financial position.

h. The retained earnings is restricted for the payment of dividends to the extent representing
the accumulated equity in net earnings of the subsidiaries and unrealized asset revaluation
reserve. The accumulated equity in net earnings of the subsidiaries is not available for
dividend distribution until such time that the Company receives the dividends from the
subsidiaries.

FS57
 Del Monte Pacific Limited and its Subsidiaries
Unaudited Interim Condensed Consolidated Financial Statements
For the nine months ended 31 January 2022 and 2021

i. Deferment of DMPI IPO Due to Volatile Market Conditions

In light of increased market volatility, on 4 August 2021, the Board of the Company, in
consultation with its advisors, had decided to delay the IPO of DMPI on the PSE. The
Board believed that it is in the best interests of the Company, its shareholders and potential
investors to defer the listing until conditions improve.

The Board remains committed to listing DMPI and continues to believe strongly in the
growth and resilience of its business.

FS58