Del Monte clears $10.4M in H1

MANILA, Philippines - Campos-led Del Monte Pacific Ltd. (DMPL) reported a 57.4 percent jump in first half net earnings to $10.4 million, mainly due to higher turnover.

Based on its financial report filed at the Singapore Stock Exchange, DMPL said sales rose 10.8 percent to $183.6 million due to higher volume and better sales mix.

“The branded Del Monte and S&W businesses in the Philippines and in Asia Pacific continue to sustain their robust performance through deeper market penetration. These offset weakness in the global export markets in light of significantly reduced pineapple concentrate prices,” said Joselito D. Campos, managing director and chief executive officer of DMPL.

Asia Pacific accounted for 57 percent of total turnover with sales rising eight percent to $105.6 million to the Asia Pacific markets. Europe and North America contributed $21.7 million or 12 percent of the total and 14 percent lower than the previous level due to lower demand in canned fruits, plastic cups and pineapple juice concentrate.

Sales in the Philippines climbed 13 percent, largely driven by the strong performance of fruit juices. Del Monte 100 percent Pineapple Juice Heart Smart’s strong cholesterol reduction further strengthened the line’s push for consumption as a daily maintenance beverage among a wider base of consumers.

The S&W branded business, both processed and fresh, turned in another strong quarter with sales expanding 66 percent to $8.9 million. The group penetrated new markets in the first quarter this year -- the Middle East for its processed products, and Japan for its fresh fruit under the S&W brand.

Improved sales coupled with lower overhead expenses led to the 24.2 percent rise in operating income to $11.4 million from $5.7 million. As a result, gross profit improved 17 percent to $44.6 million.

Export sales, however, fell five percent.

Barring unforeseen circumstances, the group expects to improve earnings for the second half.

Amid challenging prospects in export markets, DMPL plans to cut back on tonnage, shift volume to stronger markets and grow sales of more value-added products.

The group owns the Del Monte brand in the Philippines where it enjoys leading market shares for canned pineapple juice and juice drinks, canned pineapple and tropical mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup.

Subsidiary Del Monte Philippines, with a 23,000 hectare pineapple plantation and a 700,000 ton processing capacity, operates the world’s largest fully-integrated pineapple operation.