Del Monte returns to profit in fiscal 9 mos
Campos-led del monte pacific ltd. said it returned to profitability during its fiscal nine months of the year ending January to $48.8 million (about p2.44 billion) mainly on higher sales in the philippines and United states.
Revenues grew 12 percent to $1.66 billion from the previous year’s $1.48 billion.
For the third quarter alone, its income jumped four-folds to $30.2 million from the previous $6.7 million. Revenues rose 13 percent to $628.4 million from the previous $555.3 million, driven by increased sales in the Us, the philippines and other international markets.
“our Us business has turned around with two consecutive quarters of earnings. Consumers continue to place their trust in our brands and products which promise high quality and nutrition,” Joselito d. Campos Jr., the company’s managing director and Ceo, said.
“We are also reaping the benefits from considerable cost savings achieved through the execution of an asset-light model in the Us along with greatly improving efficiencies we have implemented in our supply chain.”
del monte Foods Inc, the group’s american subsidiary, generated 70 percent of group revenues for the fiscal third quarter and achieved a 12-percent increase in sales to $440 million, mainly driven by a robust sales growth of 26 percent in the branded retail segment amid the Covid-19 pandemic, the company said.
Core categories of vegetable and fruit delivered substantial growth as consumers chose trusted, healthy and shelf-stable products for their meal preparation at home. e-commerce sales saw significant increase continuing the strong growth momentum.
In the third quarter, del monte philippines Inc., its local unit, expanded sales in the country by 20 percent despite the weakened economy and high unemployment. Both retail channels of modern trade and general trade delivered robust performance with sales growth of 27 percent, offsetting declines in foodservice.
The company also expanded its presence in e-commerce, investing in both digital capability and partnerships with leading online platforms lazada and shopee. This resulted in significant growth in e-commerce sales during the lockdown period which continued even post-lockdown, but coming from a low base.