DEL MONTE Pacific Limited (DMPL) swung back to profitability in the third quarter ending January, even as sales slipped in the same period.
In a statement issued Friday, the listed canned fruit manufacturer said it booked a net income of $2.6 million in the three months ending January, reversing a loss of $38.4 million recorded in the same period a year ago.
The company booked a loss in the November to January 2018 period, after it wrote off $39.8 million worth of deferred tax assets for the North American business, Del Monte Foods, Inc. (DMFI). This is due to changes in the federal income tax to 21% from 35%.
Sales for the period stood at $528.7 million, 12% lower year on year, following the company’s divestment of the Sager Creek vegetable business, lower sales in the United States, as well as a decline in exports of processed pineapple products.
Excluding the Sager Creek divestment, DMPL’s sales were still lower by six percent.
The company noted that its business in the Americas recorded a drop in volume across all categories, while also feeling the negative impact of lower prices for pineapple juice concentrate.
In the Asia-Pacific region, Philippine sales also declined in the general trade and mixed fruit category. In contrast, the food service unit continued to grow.
On a nine-month basis, DMPL’s net income reached $14 million, versus a net loss of $40.4 million in the same period a year ago. at the same time, sales slipped by 10% to $1.5 billion.
The company looks to sustain its profitability this year, as it focuses on responding to consumer trends to strengthen its core business.
“The group also continues to review its manufacturing and distribution footprint in the US to improve operational efficiency, further reduce costs and increase margins. It is committed to improve cash flow, further strengthen the balance sheet, and reduce leverage and interest expense,” the company said.
Shares in DMPL jumped 1.17% or seven centavos to close at P6.07 each at the stock exchange on Friday. — Arra B. Francia