Del Monte Pacific swings to fiscal 2Q net loss

Can of Del Monte brand pineappleCan of Del Monte brand pineapple

Del Monte Pacific reported Friday it swung to a fiscal second quarter net loss of US$37.35 million, from a year-earlier net profit of US$8.43 million due to one-off expenses related to four plant closures and sales in the U.S.

Excluding one-off items, net profit would have more than doubled to US$15.93 million, from US$7.30 million in the year-ago quarter, Del Monte Pacific said.

Turnover for the quarter ended 31 October edged up 0.4 percent on-year to US$558.75 million on better retail sales in the Philippines and the strong performance of the S&W brand in Asia, partly offset by lower sales in the U.S., the pineapple producer said in a filing to SGX.

The U.S. subsidiary, Del Monte Foods Inc. (DMFI), reported sales of US$396.2 million, or 70.9 percent of the group’s total, down 5.3 percent on-year, mainly on the Sager Creek divestiture, lower sales to USDA in line with strategy and timing of holiday shipments resulting from a later Thanksgiving.

“Del Monte continued to diversify beyond the canned goods aisle and introduced innovative plant-based products catering to demand for health and wellness, snacking and convenience,” the company said. “Following the introductions in the previous quarter of Del Monte Fruit Crunch Parfaits, Del Monte Veggieful Bites, Contadina Pizzettas and Del Monte Bubble Fruit, Del Monte launched Del Monte Veggieful Bowls
nationwide in the U.S. in October.”