Robust Asian business boosts Del Monte earnings
Global food conglomerate Del Monte Pacific Ltd. (DMPL) posted a net profit of $24.4 million in the fiscal year ending April, 57 percent lower than the previous year due to extraordinary items that boosted comparative earnings last year and some one-time expenses this year.
Excluding one-off items, DMPL’s recurring income for the fiscal year was estimated at $45.5 million, improving from $25.2 million in the previous year, driven mainly by robust Asian businesses, the company disclosed to the Philippine Stock Exchange yesterday.
For the fiscal year, the group generated sales of $2.3 billion, lower by 0.9 percent than the previous year, on lower US sales which were partly offset by robust sales in Asia. Sales in the Philippines were higher for the full year, mainly due to the expansion in consumer base and household penetration, while S&W in Asia improved with better distribution and expansion through partnerships and other initiatives.
The headline net profit of $24.4 million for fiscal year ending April also included a one-off expenses of $21.1 million from severance, closure of the group’s North Carolina plant and a deferred tax write-off.
Barring unforeseen circumstances, the group expected to remain profitable in its fiscal year 2018, the disclosure said.
For the three-month period ending April alone (the fourth quarter in DMPL’s fiscal year), the group generated a net income of $2.9 million, lower than the prior year’s net income of $23.2 million. Without the one-off items, the group delivered a recurring net income of $17.2 million for the quarter, higher than last year’s recurring net income of $14.8 million.
“Our business in Asia sustained its strong momentum in the fourth quarter driven by S&W’s significant growth in North Asia and higher food service sales in the Philippines. We entered the e-commerce channel in China through JD.com, while continuously optimizing opportunities in other channels and markets. To support our expansion in Asia, we recently set up an office in Tokyo and will be opening offices in Shanghai and Seoul next,” DMPL managing director and CEO Joselito D Campos Jr. said.—DORIS DUMLAO-ABADILLA
