Del Monte Pacific sales rise despite El Niño effects in Q1

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Del Monte Pacific sales rise despite El Niño effects in Q1

Philippines-based Del Monte Pacific Limited (DMPL) has reported a 6% sales increase to US$472.8 million for the quarter ending in July, even though the weather phenomenon El Niño reduced the company's pineapple supply. pinapple_23393101 small

The group - which is dual listed on the Singapore Mainboard and Philippine Stock Exchange - recorded significant growth in EBITDA to reach US$17.3 million, compared to an operating loss of US$12.1 million during the same period last year.

However, DMPL registered a net loss of US$12 million for the period; an improvement on the US$21.9 million net loss in the first quarter of the 2015 fiscal year.

The net loss was partly attributed to U.S. subsidiary Del Monte Foods' (DMFI) first quarter being the seasonally weakest.

"Our financial performance tends to be skewed towards the second half of our fiscal year when Del Monte is the brand of choice for festive occasions," DMFI CEO Nils Lommerin said.

"As we continue to unlock the growth potential of our products, accelerate our penetration of the food service sector and ethnic Asian market as well as enter new vegetable segments, our results will improve further."

DMPL CEO Joselito D Campos Jr said the company had successfully laid a solid foundation to execute growth plans in the coming quarters.

"Barring unforeseen circumstances, we look forward to a return to profitability in FY2016, which will generate more free cash flow to allow us to deleverage further," he said.

www.freshfruitportal.com

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