EARNINGS of Del Monte Pacific Ltd. soared 159% to $6.67 million in the third quarter, driven by higher sales across its global operations.
In a statement yesterday, the listed canned fruits manufacturer said it recorded $555.30 million in sales during the third quarter ending January, up 5% year on year. Operating profit also improved 24.60% to $30.19 million.
Del Monte attributed the growth to higher sales in the United States, the Philippines and S&W in Asia. The US subsidiary, Del Monte Foods, Inc. (DMFI), posted 1.50% higher sales at $391.80 million due to higher prices and volumes.
Contributions from operations in the Philippines also climbed 11% to $98.50 million (6% in peso terms), due to higher retail sales in both general trade and modern trade channels.
Year-to-date, Del Monte swung to an attributable net loss of $68.95 million from a net profit of $14.02 million a year ago. This is as its topline slipped 2.10% to $1.49 billion.
Minus one-off expenses, the company would’ve seen a net profit of $27.40 million, 47% up from a year ago. Del Monte recorded a total of $96.4 million in one-off expenses, mainly from closing and selling plants in the US.
“Ongoing transformational initiatives at DMFI are already showing a positive impact on third quarter results, with significant improvements in profitability as well as operational efficiencies,” Del Monte Managing Director and Chief Executive Officer Joselito D. Campos, Jr. said in the statement.
“We are encouraged that the expected cost savings are on track,” he added.
Del Monte also said it hasn’t been affected by the coronavirus disease 2019 (COVID-19) outbreak yet during the period ending January, but it is closely monitoring the situation, especially its threat in fresh pineapples from China.
“In February, the group experienced softer demand and some logistics hurdles in China, but has the flexibility to allocate products to other markets and will continue to expand e-commerce sales. Sales in China account for approximately 3% of group sales,” it said.
“The group is also monitoring its supply chain, primarily in China, so that it can minimise any potential impact on raw and packaging materials, and equipment sourcing. The group will continue to take the necessary precautionary measures to ensure the health and safety of its employees,” it added.
Shares in Del Monte at the stock exchange gave up 40 centavos or 11.11% to P3.20 each on Thursday.— Denise A. Valdez
