Food

Del Monte banking on retail sales to boost 2020 sales

Del Monte Philippines Inc.’s (DMPI) is banking on retail sales to drive growth for the fiscal year 2020 amidst the pandemic.

Del Monte Philippines Inc.’s (DMPI) is banking on retail sales to drive growth for the fiscal year 2020 amidst the pandemic.

DMPI Chief Financial Officer (CFO) and Treasurer Parag Sachdeva said their retail branded business “has remained resilient and growing” unlike the food service business, which weakened due to the shutdown of food service outlets.

“(The) contribution of food service business is not significant for DMPI and growth in retail more than offset the decline in food service,” he said in reply to e-mailed questions from the Philippine News Agency.

The distribution expansion plan in the retail segment continues and new products are being introduced, he said.

Sachdeva said the export of fresh pineapple was affected during the post-Chinese New Year last February and March because of the pandemic “but is fast recovering”.

He said “processed pineapple exports continue to be sold out in our current fiscal year”.

“Barring any unforeseen events beyond Covid, we should be able to deliver better business results this year than last year,” he said.

In a statement, DMPI said it registered P7.4 billion in sales in the first quarter ending July 2020, around 60 percent of which came from domestic operations while the balance accounted for operations in the international market.

Domestic sales rose by 18 percent to P4.5 billion against the P3.8 billion worth of sales in the same period last year.

The company listed on the Philippine Dealing Exchange (PDEx) on Friday its P6.5 billion worth of Series A Fixed Rate bonds due in 2023 and Series B fixed-rate bond due in 2025.

Sachdeva said they want to maximize the benefit of the current low-interest rate environment in the country through bond issuance.

“DMPI’s business has proven to be resilient over its 94 years of existence and continues to grow during the pandemic. With continued momentum during the pandemic, DMPI was nicely positioned to take advantage of prevailing low-interest rates and long maturities of the bond,” he added. (PNA)

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