Del Monte PHL income up 33% on international sales

Del Monte Philippines Inc., the local unit of Campos-led Del Monte Pacific ltd. (DMPL), said its income grew 33 percent to P1.3 billion in the first quarter of fiscal year 2022 ending July mainly due to the increase in its international sales.

The company also benefited from the reduction in the corporate tax rate to 25 percent following the enactment of the Corporate recovery and Tax Incentives for enterprises Act in March. “I am pleased to report that our company has sustained its solid performance with double-digit sales and profit growth, a testament to our products’ health and nutrition value proposition,” Joselito d. Campos Jr., the company’s CEO, said. “We are committed to offering more value to our consumers as we enter new segments such as dairy with our joint venture partner Vinamilk.”

Sales rose 16 percent to P8.6 billion for the period led by the international market.

The Philippines accounted for more than half of DMPI’S sales, while the balance came from the international market.

del Monte’s international sales grew 37 percent to P3.3 billion on robust sales of packaged fruit and beverages, including premium packaged pineapple in the United States, and S&W packaged products in Asia.

The premium fresh fruit segment, mostly branded, increased sales by 29 percent as it continued its recovery from the first quarter last year which was affected by the pandemic in China. It achieved strong sales in the current quarter on the back of expanded distribution coverage with 747 new stores for the company’s top three distributors in China.

Some 3,000 Goodme and 1,000 Chabaidao fruit tea shops also used pineapple in their offerings. S&W fresh cut pineapple was also one of the best-sellers among the fresh cut pineapple products on South Korea’s largest e-commerce platform, Coupang.

Sales in the Philippines dropped 2 percent to P4.4 billion due to the slowdown in the healthy beverages and snacks category.

Beverage had an exceptional quarter last year but when compared to the first quarter two years ago, sales in the Philippines grew by 16 percent.

del Monte and Vinamilk entered into a joint venture last month to expand further into the dairy sector in the Philippines, synergizing Vinamilk’s strength in dairy manufacturing and technology with del Monte’s strength in marketing and distribution in the country.

The company will import products from Vietnam, and market them under a co-branded label through del Monte, leveraging the trust and affinity built for the del Monte brand among Filipino consumers, as well as its distribution network.

del Monte Pacific, meanwhile, posted a net profit of $18.3 million during the period, reversing the $3.2-million loss last year. DMPL significantly improved its margins by 600 basis points from higher sales of higher-margin branded products in the US and lower costs.