Del Monte Philippines FY profit down to P2.6B
Del Monte Philippines Inc. saw its net income slightly decline for its fiscal year ending April to P2.6 billion, weighed down higher interest expenses.
DMPI, the second largest and most profitable subsidiary of Singapore-based food company Del Monte Pacific Ltd., chalked up P27.6 billion in sales, up 3.4 percent year on year on robust contributions from the Philippine market. Operating income went up two percent to P3.3 billion.
About two-thirds of DMPI’s sales came from the Philippines while the balance came from exports. Sales in the Philippines grew 6.7 percent to P16.9 billion.
The company expects to bounce back this year, banking on the sustained strong performance of its Philippine unit with its key Del Monte brand projected to continue to deliver higher profits.
Exports are likewise seen to improve from better sales mix with higher fresh pineapple sales under S&W, and increased export margins from pricing, cost management and operational efficiencies.
With better collection of its receivables, DMPI is well positioned to lower its borrowings and interest expense in the coming year.
DMPI has been in operation in the Philippines for over 90 years and is the market leader in the canned pineapple and mixed fruit, canned and Tetra ready-to-drink juices, tomato sauce and spaghetti sauce categories, under its iconic Del Monte brand.
It is one of the largest food and beverage companies in the Philippines, which has one of the fastest growing economies with consumption driving over 70 percent of its economy.