SINGAPORE (March 10): Del Monte Pacific reported 3Q earnings of US$8.5 million ($12.1 million), a turnaround from the net loss of US$4.8 million from a year ago.
Without the one-off items, the group says it would have posted earnings of US$11.6 million, more than five times higher than last year’s recurring net income of US$2.1 million.
Revenue for the three months ended January was slightly higher at US$604 million as higher Asia sales offset lower US sales.
The group’s US subsidiary, Del Monte Foods, Inc (DMFI), saw a 3% drop in sales to US$450.6 million, or 75% of group sales.
Del Monte Pacific says sales in the Philippines grew as the group drove to optimise growth and consumption opportunities during the Christmas peak consumption occasions.
Sales of the S&W branded business in Asia and the Middle East sustained its strong momentum, growing 39% driven by both the fresh and packaged segments.
Sales of OEM exports rose 23% while its FieldFresh joint venture in India saw a 7% rise in sales although share of loss widened to US$0.5 million.
The group’s gross margin for the third quarter increased to 20.8% from 19.8% partly due to higher productivity in the cannery and lower commodity costs particularly packaging.
Looking ahead, the group says it is expected to generate a higher profit in FY2017 than prior year on a recurring basis.
Shares of Del Monte closed flat at 35 cents on Thursday.
