Del Monte profits rise on better canned fruit, vegetable sales
Dual-listed Del Monte Pacific Ltd. (DMPL) booked 38-percent profit growth in the fourth quarter ending April this year, supported by better sales of its core products such as canned vegetable and fruit.
In a disclosure on Friday, the consumer goods firm noted that its net profits rose to $20 million as sales climbed by 14 percent to $569.5 million for the period.
Gross profit, meanwhile, improved by 11 percent to $147.6 million.
US subsidiary Del Monte Food Inc. (DMFI) contributed $411 million in sales, which was 72 percent of the group’s total revenues.
Strong Easter sales
DMFI’s sales volume of canned vegetable and fruit grew by 23 percent during the period, boosted by “increased product supply and merchandising support for the Easter holiday.” Canned tomato and fruit cup snacks also saw better sales.
“S&W branded business in Asia grew on the back of strong sales of the premium fresh pineapple segment in China and South Korea,” DMPL said, noting they have began supplying pineapple juice to fastfood chain Jollibee in Malaysia.
For the full-year performance, the group achieved a net profit of $100 million, showing 58-percent growth.
This, as sales were up 8 percent to $2.3 billion. Bulk of this was from DMFI whose revenues improved by 12 percent to $1.7 billion, driven by the sales of its core products.
“Our growth in fiscal year 2022 was no small feat amid the ongoing pressures of a pandemic and high inflation across the world. Through our trusted portfolio of quality products, strategic pricing actions and increasing efficiencies across our business, our team successfully navigated these unprecedented challenges and demonstrated our resilience,” DMPL managing director and CEO Joselito Campos Jr. said.
On Friday, it announced the declaration of cash dividends amounting to $0.017 per share.
