DEL MONTE Pacific Ltd. (DMPL) reported a net profit of $30.16 million for its third quarter ending in January 2021, nearly four times the $6.67 million it earned the previous year, as sales grew in all product categories.
“DMPL returned to profitability in [fiscal year] 2021 and is well-positioned in this environment given its nutritious, long shelf-life products which enable consumers to prepare meals at home and build their immunity amidst the pandemic,” DMPL Managing Director and Chief Executive Officer Joselito D. Campos, Jr. said in a statement on Thursday.
Revenues increased 13.1% to $628.4 million from $555.3 million, as sales in the US, Philippines, and other international markets grew due to the demand for the company’s products.
In the Philippines, sales improved by 19.9% in US dollar terms and 13.8% in peso terms.
Del Monte Philippines, Inc. (DMPI) expanded its product offerings and dived into e-commerce platforms as most consumers stayed at home amid the health crisis.
The company launched Del Monte Deluxe Gold and Fiesta Fruit Cocktail in smaller cans as its limited edition Christmas products for families hosting smaller celebrations. In January, a more compact version of Del Monte’s tomato sauce also hit the shelves “in an effort to extend its use in everyday dishes.”
“Season-relevant recipes were highlighted vis-à-vis meal planning in Del Monte Kitchenomics, the company’s successful long-running recipe program,” DMPL said.
DMPI also invested in digital marketplaces, pursuing partnerships with online shopping platforms Lazada and Shopee while the country was on lockdown. This resulted in significant growth in e-commerce sales, which remained robust even post-lockdown.
Meanwhile, US subsidiary Del Monte Foods, Inc (DMFI) finished the quarter with $440 million in sales from $391.8 million, which accounted for 70% of group sales.
“Our US business has turned around with two consecutive quarters of earnings. Consumers continue to place their trust in our brands and products which promise high quality and nutrition,” Mr. Campos said.
DMFI was given a “Product of the Year” recognition for innovation. DMPI-produced Del Monte Deluxe Gold Pineapple was awarded in the fruit category, while Del Monte Veggieful Pocket Pies won in the convenience meal category.
DMPL earned $48.8 million in net profit for the nine months ending in January 2021, a reversal of its net loss of $69 million in the same period in the previous year.
Sales for the nine-month period meanwhile inched up by 13% to $1.7 billion from the $1.5 billion covering the first nine months of 2019.
“The group will continue to improve and expand its offering of trusted, high-quality products, while making these more readily available to consumers through traditional and digital channels, and through more convenient packaging formats,” the company said.
DMPL said it plans to enter China’s market this year, as well as in other underserved markets.
“Del Monte Pacific Limited continues to explore an IPO option for Del Monte Philippines, Inc, subject to market conditions. An announcement would be made in due course, as appropriate,” the company said.
DMPL shares at the stock exchange rose by 3.88% or P0.36 on Thursday to close at P9.65 apiece. — Keren Concepcion G. Valmonte