MIRA INFORM REPORT

 

 

Report Date :           

01.03.2012

 

IDENTIFICATION DETAILS

 

Name :

DEL  MONTE  FRESH  PRODUCE  (ASIA-PACIFIC)  LTD.

 

 

Formerly Known As :

Profwheel (Far East) Ltd.

 

 

Registered Office :

Suite 2B-3A, 17/F., Tower 5, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

07.07.1989

 

 

Com. Reg. No.:

12888812

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer and Exporter of all kinds of fruits, etc.

 

 

No. of Employees :

08

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Hong Kong

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name

 

DEL  MONTE  FRESH  PRODUCE  (ASIA-PACIFIC)  LTD.

 

 

Company ADDRESS

 

Suite 2B-3A, 17/F., Tower 5, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE:            2723 7011

FAX:                 2311 3187,  2739 1918

 

 

MANAGEMENT

 

Group President & Chief Operating Officer:  Mr. Hani El Naffy

 

 

SUMMARY

 

Incorporated on:             7th July, 1989.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000.00

Issued:              HK$5,000.00

 

Business Category:        Fresh Fruit Trader.

 

Group Net Sales:           US$3,589.7 million  (Year ended 31-12-2011)

 

Employees:                   8.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Good.


Company ADDRESS

 

Registered Head Office:-

Suite 2B-3A, 17/F., Tower 5, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

 

Holding Company:-

Del Monte B.V., The Netherlands.

 

Ultimate Holding Company:-

Fresh Del Monte Produce Inc., Cayman Islands/USA.

 

Associated Companies:-

Fresh Del Monte Group of Companies

·         Corporacion De Desarrollo Agricola Del Monte S.A., Costa Rica.

·         Del Monte Fresh Produce (HK) Ltd., Hong Kong.

·         Del Monte Fresh Produce (India) Private Ltd., India.

·         Del Monte Fresh Produce (Korea) Ltd., South Korea.

·         Del Monte Fresh Produce (Phils.) Inc., Philippines.

·         Del Monte Fresh Produce Company, USA.

·         Del Monte Fresh Produce International Inc., Liberia.

·         Del Monte Fresh Produce N.A. Inc., USA.

·         Del Monte Fund B.V., Netherlands Antilles.

·         Del Monte International GmbH, Switzerland.

·         Fresh Del Monte Japan Co. Ltd., Japan.

·         Fresh Del Monte Produce N.V., Netherlands Antilles.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

12888812

 

 

COMPANY FILE NUMBER

 

0257298

 

 

MANAGEMENT

 

·         Group Chairman & Chief Executive Officer:
Mr. Mohammad Ahmad Abu Ghazalch

 

·         Group President & Chief Operating Officer:  Mr. Hani El Naffy

 

·         Group Senior Vice President (Europe, Africa & Middle East):
Mr. Jean-Pierre Vidal Bartoli

 

·         Group Vice President (Asia Pacific):  Mr. Joseph Cole

 

 

CAPITAL

 

Nominal Share Capital:   HK$10,000.00 (Divided into 1,000 shares of HK$10.00 each)

 

Issued Share Capital:     HK$5,000.00

 

 

SHAREHOLDERS

(As per registry dated 07-07-2011)

 

Name

 

No. of shares

Del Monte B.V.

Klappolder 170, 2665 MP Bleiswijk, The Netherlands.

 

499

Hani EL NAFFY

 

1

 

 

–––

 

Total:

500

===

 

 

DIRECTORS

(As per registry dated 07-07-2011)

 

Name

(Nationality)

 

Address

Hani EL NAFFY

5134 Fisher Island Drive, Miami Beach, Florida 33109-0239, USA.

 

Mohammad Ahmad ABU GHAZALCH

Calle La Vega Alta 6882, Vitacura, Santiago, Chile.

 

Jean-Pierre Vidal BARTOLI

14 Rt de L’Annonciade, Manton 065000, France.

 

 


SECRETARY

(As per registry dated 07-07-2011)

 

Name

Address

Co. No.

EQ Secretaries Ltd.

36/F., Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong.

0099444

 

 

HISTORY

 

The subject was incorporated on 7th July, 1989 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Alsthom Co. Ltd., name changed to Profwheel (Far East) Ltd. on 14th November, 1989, and changed to the present style on 25th March, 1998.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           All kinds of fruits, etc.

 

Employees:                   8.

 

Commodities Imported:   Worldwide.

 

Markets:                       Asia, Europe, North America, etc.

 

Group Net Sales:           US$3,214.3 million  (Year ended 29-12-2006)

US$3,365.5 million  (Year ended 28-12-2007)

US$3,531.0 million  (Year ended 26-12-2008)

US$3,496.4 million  (Year ended 01-01-2010)

US$3,552.9 million  (Year ended 31-12-2010)

US$3,589.7 million  (Year ended 31-12-2011)

 

Terms/Sales:                 L/C or as per contracted.

 

Terms/Buying:               L/C, D/P, etc.

 

 


FINANCIAL INFORMATION

 

Nominal Share Capital:               HK$10,000.00 (Divided into 1,000 shares of HK$10.00 each)

 

Issued Share Capital:                 HK$5,000.00

 

Mortgage or Charge (since 1999):  (See attachment)

 

Group Net Income/(Loss):           (US$142.4 million)          (Year ended 29-12-2006)

US$180.0 million            (Year ended 28-12-2007)

US$157.2 million            (Year ended 26-12-2008)

US$144.6 million            (Year ended 01-01-2010)

US$  60.8 million           (Year ended 31-12-2010)

US$  94.8 million           (Year ended 31-12-2011)

 

Group Profit or Loss:                  Making a profit in the past four years.

 

Condition:                                  Keeping in a satisfactory manner.

 

Facilities:                                  Making rather active use of general banking facilities.

 

Payment:                                  Met trade commitments as required.

 

Commercial Morality:                 Satisfactory.

 

Bankers:-

·         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

·         Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. [Business names: Rabobank Nederland, Rabobank and Rabobank International], Hong Kong Branch.

 

Standing:  Good.

 

 

GENERAL

 

Del Monte Fresh Produce (Asia-Pacific) Ltd. is a wholly-owned subsidiary of Del Monte B.V. which was registered in The Netherlands.  The ultimate holding company of the subject Fresh Del Monte Produce Inc. [Fresh Del Monte] (referred to “Group” when including associated companies and subsidiaries) which is a Cayman Islands-registered firm.

The subject is engaged in marketing the Group’s fruits in Hong Kong.

Fresh Del Monte is a listed firm in the United States.  Its shares are traded in New York Stock Exchange.  Fresh Del Monte is one of the world’s leading vertically integrated producers, marketers and distributors of high-quality fresh and fresh-cut fruit and vegetables, as well as a leading producer and distributor of prepared fruit and vegetables, juices, beverages, snacks and desserts in Europe, the Middle East and Africa.  Fresh Del Monte markets its fresh products worldwide under the “Del Monte®” brand, a symbol of product quality, freshness and reliability for more than 100 years.

Net sales for the year 2011 increased by 1% to US$3,589.7 million, compared with the prior year period which was US$3,552.9 million.  The increase was attributable to higher net sales in Fresh Del Monte’s banana and other fresh produce segments.  Net sales for the fourth quarter of 2011 were US$780.8 million, compared with US$816.7 million in the prior year’s fourth quarter.  The decrease in net sales was the result of underperformance in Europe across many of Fresh Del Monte’s business segments, primarily due to lower selling prices.

Gross profit for the year 2011 was US$319.5 million, compared with US$272.4 million in 2010.  Excluding asset impairment and other charges and credits, gross profit was US$318.1 million in 2011, compared with US$281.1 million in 2010.  The increase in gross profit for the full year is attributable to higher gross profit in Fresh Del Monte’s banana and prepared food business segments, partially offset by lower gross profit in Fresh Del Monte’s other fresh produce business segment.  Gross profit for the fourth quarter of 2011 was US$30.9 million, compared with US$39.6 million in the fourth quarter of 2010.  Excluding asset impairment and other charges and credits, gross profit was US$28.6 million in the fourth quarter of 2011, compared with US$40.0 million in the fourth quarter of 2010.  The decrease in gross profit for the fourth quarter is principally due to lower gross profit in Fresh Del Monte’s other fresh produce segment in Europe and higher costs associated with fuel as well as the negative impact of unfavourable exchange rates.

Net income for the year 2011 was US$94.8 million, compared with US$60.8 million in 2010.  Excluding asset impairment and other charges and credits net income was US$107.4 million in 2011, compared with US$108.2 million in 2010.  Net loss for the fourth quarter of 2011 was US$10.1 million, compared with a net loss of US$9.6 million in the fourth quarter of 2010.  Excluding asset impairment and other charges and credits Fresh Del Monte reported a net loss for the fourth quarter of 2011 of US$8.9 million, compared with net income of US$4.0 million in the fourth quarter of 2010.  The change was primarily the result of higher operating losses, partially offset by higher tax benefits.

Concerning bananas, net sales for the year increased 2% to US$1.7 billion, compared with US$1.6 billion in 2010, primarily due to higher selling prices in Fresh Del Monte’s Asia and North America regions.  Worldwide pricing increased US$0.54, or 4%, to US$14.22 per unit, compared with US$13.68 per unit in 2010.  Volume was 2% lower.  Gross profit for the year was US$88.3 million, compared with gross profit of US$31.4 million in 2010.  Unit costs were in line with the prior year.

The subject is fully supported by the Group.

As the history of the subject is over twenty-two years and seven months in Hong Kong, on the whole, consider it good for normal business engagements.

 


REMARKS:

 

Brief personal profile of the principals:-

Mr. Mohammad Ahmad ABU GHAZALCH has served as the Group’s Chairman of the Board of Directors and Chief Executive Officer since December 1996.  He is also the Chairman and Chief Executive Officer at IAT Group Inc.  Mr. Abu Ghazaleh was President and Chief Executive Officer of United Trading Company from 1986 to 1996.  Prior to that time, he was Managing Director of Metico from 1976 to 1986.

Mr. Hani EL NAFFY has served as the Group’s President and Chief Operating Officer since December 1996.  Prior to that time, he had served as Executive Director for United Trading Company from 1986 until December 1996.  From 1976 to 1986, he had been President and General Manager of T.C.A. Shipping.

Mr. Jean-Pierre Vidal BARTOLI has served as Senior Vice President (Europe, Africa and the Middle East) since April 1997.  Prior to that time, he served as Financial Director for the European and African region from 1990 to 1997.  Mr. Bartoli held various financial positions in Fresh Del Monte’s European operations from 1983 to 1990.

Mr. Joseph COLE joined Fresh Del Monte in 2008 and served as Vice President – Tomato and Vegetables for the Group’s North American region.  He was recently appointed as Vice President – Asia Pacific in February 2011.  Prior to joining Fresh Del Monte, Mr. Cole’s career in the fresh produce industry included senior management positions at The Oppenheimer Group, Chiquita Brands, The Tengelman Group in Germany and Dole Vegetables.


MORTGAGE OR CHARGE

(Since 1999)

 

Date

Particulars

Amount

21-03-2003

Instrument:      Pledge Agreement

Property:

(a) The shares of stock; (b) all of Pledgor’s rights, powers and remedies; (c) all additional shares of stock of any issuer of the Pledged Interests; and (d) all proceeds of any and all of the foregoing

Mortgagee:      Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. [Trading as Rabobank Nederland], New York Branch, USA.

The payment of all obligations of the Loan Parties

17-07-2009

Instrument:      Pledge Agreement

Property:

(a) The Stock owned by the Company; (b) all of the Company’s rights, powers and remedies; and (c) to the extent not otherwise included, all proceeds of any and all of the foregoing
Note:  Partly released on 17-07-2009

Mortgagee:      Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. [Trading as Rabobank Nederland], New York Branch, USA.

The payment and performance of all Obligations of the Loan Parties


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.48.94

UK Pound

1

Rs.77.95

Euro

1

Rs.65.94

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.