Campos-led Del Monte posts lower profits

MANILA, Philippines – Losses from a joint venture in India and one-time expenses pulled down profits of Campos-led Del Monte Pacific Ltd. in the fourth quarter.

But a year-long surge in export sales allowed Del Monte Pacific to almost double its earnings to $27.4 million last year, the company said.

Fourth quarter net income dropped 10.8 percent to $13.1 million from $14.6 million in the previous year due to a $2.2-million loss in FieldFresh Foods, its joint venture in India, and a $4-million one-time expense for the settlement of an arbitration.

“Without this, net profit would have been up by nine percent,” Del Monte Pacific said.

In the fourth quarter, sales rose by 10.7 percent to $154.1 million from $139.2 million a year ago.

Del Monte Pacific said it was due to “higher sales across all major markets including the Philippines, exports and S&W fresh and processed sales.”

Asia Pacific accounted for 67 percent of sales, followed by Europe and North America (19 percent) and other markets (14 percent).

For the entire year, Del Monte Pacific said its profits surged by 73.6 percent to $27.4 million from $15.8 million in the previous year. Without the one-off expense, net income would have risen by 92 percent.

“Our strong results place the group on track for further growth as we build on the gains we made in exports and by the greater market penetration of S&W branded processed and fresh business in Asia,” said Del Monte Pacific chief executive Joselito D. Campos Jr.

Revenues climbed by 12.3 percent to a record $425.2 million last year from $378.6 million.

Last year, Asia Pacific accounted for 61 percent of sales, followed by Europe and North America (24 percent) and other markets (15 percent).

Margins in Europe improved as the company said it sold products directly following the termination of an unprofitable supply contract.

“Barring unforeseen circumstances, the group expects to improve earnings in 2012. This will be driven by revenue enhancements from better mix and volume, operational efficiencies coupled with active cost management, and reduced losses in its Indian joint venture company,” Del Monte Pacific said.

Del Monte Pacific produces, markets and distributes food, beverages, and related products in the Asia-Pacific region and the Indian subcontinent, and has supply deals with Del Monte trademark owners and licensees around the world.

The NutriAsia Group of Campos owns a majority stake in Del Monte Pacific. NutriAsia leads the Philippine market for condiments, specialty sauces and cooking oil.

The 20,000-hectare plantation of Del Monte Pacific in Mindanao is the world’s largest fully integrated pineapple operation with a 700,000-metric-ton processing capacity.