Del Monte posts net loss of $2.1M in H1

Food conglomerate Del Monte Pacific Ltd. (DMPL) incurred a net loss of $2.1 million in the six-month period ending October due to one-off expenses arising from its streamlining initiatives in the United States.

Excluding this, the group would have generated a net income of $11.5 million for the first semester in its fiscal year 2018, DMPL reported to the Philippine Stock Exchange on Wednesday. The group generated sales of $1.1 billion in the first six months, marginally lower versus the prior year period as higher sales in Asia were offset by lower sales in the United States.

“Barring unforeseen circumstances, the group is expected to be profitable for fiscal year 2018 on a recurring basis,” DMPL said.

For the quarter ending October alone, the group incurred a net loss of $2.8 million versus a net income of $20 million in the same period in the prior year. Excluding one-off expenses, net income would have been $10.2 million.

“We have taken some challenging but necessary steps in the US to realign our manufacturing footprint and strengthen our competitiveness in the long term, amid shifts in consumer tastes and shopping preferences,” said Joselito D. Campos Jr., DMPL managing director and CEO.