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COMPANY
HISTORY
The Del Montename has
been synonymous with
premium foods since its debut
in 1886. For generations, our
company has proudly earned
our reputation with a series of
innovations and a singular
dedication to quality.
Today that commitment to
quality is deeply embedded in
our culture. At Del Monte, we
will always strive to cultivate
the bestwholesome
vegetables, fruits, and
tomatoes to help you and
your family live a life full of
vitality and enjoyment.

IDENTIFY THE RISK EXPERIENCE BY

THE COMPANY.
Financial Market Risk
Foreign Currency
Cash and Interest Rate
Economic Risk
Inflation
Business or Operational Risk
Weather conditions and natural catastrophes
Credit Risk
Increased collections

HOW DID THE MANAGEMENT

HANDLE/MITIGATE/MANAGE/CONTROL THE RISK?
Financial Market Risks
The company is subject to transaction and translation exposures
resulting from exchange rate fluctuations between Philippine Peso
and US Dollar and Mexico Peso and US Dollar. The company has
natural hedges for the Philippine Peso and the US Dollar due to its
revenue and cost mix. Del Monte Inc. hedges its exposure to the
Mexican Peso through certain forward contracts.
They obtain financing through bank borrowings and leasing
agreements. Also from bank credit facilities, for both short-term
and long-term requirements and through the sale of assets,
particularly receivables from costumers. They manage its interest
rate exposure through fixed-rate loan agreements and certain
fixed-rate contracts.

HOW DID THE MANAGEMENT

HANDLE/MITIGATE/MANAGE/CONTROL THE RISK?
Economic Risk
They lessen the impact of cost increases by actively controlling its
overall cost structure and introducing productivity-enhancing and cost
management measures.
Business or Operational Risk
To minimize any impact from heavy rainfall and floods, the company
plans various locations in our country ensuring continuity of harvest
during wet conditions. It is located on high elevation which lessens the
risk of flooding.
Credit Risk
The management has a credit policy which is the costumers must attain
the certain requirements of certain securities to ensure prompt
observance and performance of obligations of their distributors and

SUGGEST STRATEGIES TO PREVENT

EXPERIENCING THE SAME RISK AGAIN.
Financial Market Risk
The company can short the currency theyre exposed to.
Selling currencies for a predetermined price on a specific
date on the future. They can also look for high interest
rates. And buy undervalued currencies just like buying
undervalued stocks.
Economic Risk
Reducing demand for exports, increasing incentive for
exporters to cut costs and making imports cheaper
Business or Operational Risk
They must provide or execute long-term strategic plans
supported by a contingency plan, disaster recovery plans

SUGGEST STRATEGIES TO PREVENT

EXPERIENCING THE SAME RISK AGAIN.
Credit Risk
They can develop a more focused collection strategy by
determining which accounts have the highest payment
potential.
Avoid long overdue accounts so that your capital will not be
tied up and there will be less chance of accounts becoming
uncollectible.