Income jumps for Del Monte Pacific in Q3 - FreshFruitPortal.com

Income jumps for Del Monte Pacific in Q3

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Income jumps for Del Monte Pacific in Q3

Del Monte Pacific (DMPL) registered a 77% rise in net income to US$8.5 million in its third financial quarter ending in January, largely thanks in part to "strong sales" in the Philippines and S&W Asian markets. 

The company - which is dual listed on the Singapore Mainboard and Philippine Stock Exchange - said recurring net income would have been five-fold higher year-on-year at US$11.6 million if one-off items were not taken into account.

These one-off items include expenses from severance and closure of the North Carolina plant and the Sager Creek acquisition. 

The group achieved third quarter sales of US$604 million - slightly higher year-on-year, as strong sales in Asia offset lower sales in the U.S.

The U.S. subsidiary, Del Monte Foods (DMFI), contributed 75% of sales. Sales declined by 3% year-on-year driven by the "continued weakness in the canned fruit industry", as well as lower sales of regional brands in the packaged vegetable category due to supply-related issues, and lower sales of private label products.

The Philippine market’s sales grew, in part thanks to opportunities that arose during the Christmas period. "Expanded juice dispenser coverage" and "strategic meal pairing tie-ups" also helped drive foodservice growth.

Sales of the S&W branded business in Asia and the Middle East sustained its strong momentum, growing double-digit driven by both the fresh and packaged segments, according to the company.

Sales also grew "significantly" in North Asia as S&W expanded its fresh fruit distribution in China and raised brand awareness through in-store sampling.

“Our significantly higher profit was driven by strong sales in the Philippines and S&W Asian markets as well as operational efficiency improvements resulting in cost reduction," DMPL CEO and managing direct Joselito D Campos, Jr said. 

!We continue to build on the consumption driven growth in Asia as our team optimises opportunities in both the retail and foodservice sectors.

“Meanwhile, our US business continues to be impacted by shifting consumer preferences, and our performance in the foodservice and private label sectors. We are implementing a strategy based on innovation and differentiation in existing categories, while seizing opportunities in other categories and channels to address consumer demands."

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