Del Monte profit cut in half

MANILA, Philippines - Fruit and juice processing giant Del Monte Pacific Ltd. (DMPL) reported a hefty drop in profit last year as it incurred higher transaction fees from the acquisition of the consumer food business of its US affiliate.

In a disclosure, to the stock exchange, DMPL said its net income hit $16.1 million last year, just half of the $32.2 million a year ago, weighed down the $16.6-million acquisition cost and a $1-million listing fee in the local bourse.

“Adding back the one-off fees, net profit would have been $33.9 million or five percent higher than that of 2012,” DMPL pointed out.

Last week, DMPL, led by the Campos family completed the acquisition of the consumer food business of US-based Del Monte Foods for $1.657 billion. DMPL spent $16.6 million for the transaction fee.

The Singapore and Philippine Stock Exchange-listed DMPL said its sales picked up seven percent to a record $492.2 million from $459.71 million “due to better performance from both the branded and non-branded businesses.”

The branded business of DMPL in Asia consists of Del Monte in the Philippines and the Indian subcontinent, as well as S&W in Asia and the Middle East, which accounted for 68 percent of total sales last year. Sales of the branded business rose five percent in 2013.

“Sales in the Philippines grew four percent on better performance across all major product categories, led by processed fruits and canned juices,” DMPL said.