Del Monte posted Q1 loss after booking one-off expense
Del Monte Pacific Ltd. (DMPL) suffered a net loss of $30.5 million in the first quarter due to a one-off cost, but it was still expecting to make a profit at the end of its current fiscal year.
On Friday, the dual-listed food and beverage company incurred a one-time expense of $50 million from the redemption of its senior secured notes, dragging its bottom line in the period ending July.
Without the said cost, its net profit would have grown by 7 percent to $19.6 million.
DMPL saw its sales drop by 1 percent to $456.6 million as lower revenues from its Philippine operations offset the growth in the US and international markets.
Robust demand
Del Monte Foods Inc., the group’s US subsidiary, grew its sales by 1.5 percent to $302.4 million, as its canned vegetable, tomato, broth and bubble tea fared well.
DMPL’s sales in the international market rose by 16 percent to $85.6 million, driven by robust demand from North Asia. Sales in the Philippine market amounted to $75.3 million for the period. This was “10-percent lower in peso terms amid an inflationary market and 18-percent lower in US dollar terms due to the peso depreciation,” DMPL said.
‘Organic profit growth’
“Achieving organic profit growth amid 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,” DMPL managing director and CEO Joselito Campos Jr. said.
“Our focus is to continue to manage expenses across every sector of the group and constantly monitor financial markets to seize opportunities to lower our financing cost while strengthening our balance sheet,” he added.
DMPL said it would continue to improve and expand its product portfolio while managing costs in the era of rising inflation.
