Del Monte incurs $30.5 million net loss

MANILA, Philippines — Del Monte Pacific Ltd. (DMPL), the Singapore and Philippine listed company, reported yesterday a net loss of $30.5 million from May to July, the first quarter of its 2023 fiscal year, a reversal of the prior fiscal year’s net profit of $18.3 million.

However, without one-off costs, DMPL would have generated a net profit of $19.6 million, seven percent higher than a year ago as US subsidiary Del Monte Foods Inc. (DMFI) would have generated a net profit of $8 million, 67 percent higher, on lower interest expense.

DMPL’s managing director and CEO Joselito Campos Jr. said the company managed to post organic growth despite the global turmoil.

“Achieving organic profit growth amidst global turmoil and uncertainties underlines the strength of our business model and the strategies we have in place for future growth. We remain relentless in pursuing initiatives that will generate sustainable sales and profit while proactively dealing with cost inflation,” he said.

Campos said DMPL would continue to manage expenses across every sector of the Del Monte Group and constantly monitor financial markets to seize opportunities to lower financing cost while strengthening its balance sheet.

The company generated sales of $456.6 million, slightly behind a year ago by one percent as better performance in the US and international markets was offset by lower revenues in the Philippines.

DMFI raked in sales of $302.4 million, accounting for 66 percent of the group’s turnover and 1.5 percent higher versus the prior year. This was on the back of higher retail branded sales of canned vegetable, tomato, broth and Joyba bubble tea.

The Philippine market generated sales of $75.3 million, 10 percent lower in peso terms amidst an inflationary market and 18 percent lower in dollar terms due to the peso depreciation.

Beverage declined as consumers in the Philippines shifted preference to more indulgence drinks, with sales of multi-flavored juice drink large packs growing by 12 percent although not enough to offset the decline of 100 percent pineapple juice, DMPL said in its fiscal report.

Campos said DMPL would continue to improve and expand its offering of high-quality products, and make these more readily available to consumers through traditional and digital channels including e-commerce, and through more convenient formats.