DEL Monte Pacific Ltd. said earnings fell 57% in the year to April, after one-time gains in the year earlier set a high comparative base.
In a disclosure to the stock exchange on Friday, the company reported a net profit of $24.4 million, well off the year-earlier result of $57 million.
It said it incurred non-recurring writeoffs of $21.1 million after the closure of its North Carolina plant and a deferred tax write-off.
Del Monte also posted a net one-time gain of $31.7 million in the year to April 2016 from the amendment of the retirement plan of its US subsidiary Del Monte Foods, Inc. and the adjustment of working capital during the period for the North Carolina plant.
Excluding these one-off items, Del Monte said recurring profit was $45.5 million, which would have represented an 80% rise year-on-year.
Sales amounted to $2.3 billion, down 0.9% due to lower sales volumes recorded in the United States. The weak US performance was offset by robust sales in Asia, including the Philippines.
“Our business in Asia sustaines its strong momentum in the fourth quarter driven by S&W’s significant growth in North Asia and higher food service sales in the Philippines,” DMPL Managing Director and Chief Executive Officer Joselito D. Campos, Jr. was quoted as saying in a statement.
The executive noted that this was also driven by the implementation of an e-commerce channel in China through JD.com. DMPL also opened a branch in Tokyo, while eyeing the opening of stores in Shanghai and Seoul.
“Investments in new products and brand-building will continue in response to consumer demand and to secure a long term growing and profitable business. As a result, profitability in the US is likely to be impacted,” Mr. Campos said.
The company said it looks to book a profit in the current fiscal year but it did not provide a detailed estimate.
In April, the company raised around $200 million through the sale of dollar-denominated preferred shares — the first of their kind in the Philippines. Net proceeds were used to refinance the firm’s $350 million loan from BDO Unibank, Inc.
DMPL’s Philippine shares rose 10 centavos or 0.83% to P11.98 on Friday. — Arra B. Francia
