Del Monte Pacific fiscal 1Q swings to net profit

Can of Del Monte brand pineappleCan of Del Monte brand pineapple

Del Monte Pacific Ltd. (DMPL) reported Thursday its fiscal first quarter swung to a net profit of US$18.32 million, compared with a year-earlier loss of US$3.25 million on higher sales and a higher profit margin.

Turnover for the three months ended 31 July increased 11.9 percent on-year to US$462.13 million on higher U.S. sales across nearly all major segments, higher exports of S&W fresh pineapples as well as processed pineapples and other products, the company said in a filing to SGX.

“Del Monte Foods’ turnaround last year has set it on a path to higher profitability as our team executes against our strategy of increasing higher-margin branded sales and reducing non-core sales. Our fresh pineapple exports to Asian markets have also recovered and delivered growth through expansion in offline and online channels. These crucial initiatives are reflected in the strong results for the first quarter
and we are confident of sustained execution going forward,” Joselito Campos, Jr., DMPL’s managing director and CEO, said in the statement.

“We will continue to grow revenues through an innovative product portfolio, more product availability from better distribution and expanded sales channels including e-commerce. In an environment with increased emphasis on health and wellness, DMPL is well-positioned to respond to consumer needs, given our nutritious, long shelf-life products which enable consumers to prepare meals at home and build their immunity,” Campos added.

The U.S. subsidiary, Del Monte Foods Inc. (DMFI) posted sales rose 11.2 percent on-year US$298.1 million, or around 64.5 percent of the total, on improved volume across major categories, primarily canned vegetables and fruits, on improvement in supply and distribution.

DMFI’s margin rose to 25.9 percent from 17.6 percent in the year-ago quarter, mainly on higher branded sales and a favorable cost rate, the filing said.

In the Philippines, sales rose by 2.3 percent in U.S. dollar terms, but fell by 1.8 percent in Philippine peso terms, the company said.

“The strong growth behind packaged fruit, tomato sauce and spaghetti sauce in both retail and foodservice was offset by a slowdown in beverage coming off an exceptional quarter in the previous year,” DMPL said.

Del Monte Phillipines Inc. (DMPI) reported sales in the quarter rose 20 percent on-year to US$176 million, led by international market sales.

Read more about Del Monte Pacific’s earnings results.