SINGAPORE: H1 profits up at Del Monte Pacific
Philippines, where Del Monte Pacific has one of two stock exchange listings, helped sales
Sinagpore-based Del Monte Pacific has booked an increase in first-half profits, helped by revenues in the Philippines, its largest market for branded sales.
Net profit was up 2% at US$10.6m for the six months to 30 June. Operating profit grew 2.6% to $18.1m.
Turnover rose 13.5% to $208.4m as sales jumped 18% in the Philippines. New products and advertising helped sales, Del Monte Pacific said.
Sales from its S&W Fresh business were also higher, up 21% thanks to growth in Japan, China, the Middle East and Singapore.
However, sales of its S&W processed products dropped 14% after listing delays in the Middle East. Sales improved in the second quarter, the company said.
Del Monte Pacific has forecast higher earnings in 2013 than 2012.
In June, the company, which is listed in Singapore, also floated in the Philippines to widen its investor base and raise funds. Del Monte Pacific is majority-owned by an arm of privately-owned Philippines-based food firm NutriAsia Group and is not related to US-based companies Del Monte Foods nor Fresh Del Monte Produce.
Philippines is the largest market for Del Monte Pacific's branded sales, which account for around 70% of turnover. The company has the rights to the Del Monte brand in the Philippines, the Indian subcontinent and Myanmar. It also has the trademark to the S&W fruit and vegetable brand in Asia, the Middle East, Europe and Africa.
It supplies branded canned and processed fruit and vegetable products, as well as culinary lines, across Asia, the Middle East and the Indian subcontinent. The other 30% of sales are made from private-label contracts in Europe, as well as supplying Del Monte Foods in the US, Del Monte Canada - owned by ConAgra Foods - and Del Monte Asia - an arm of Japan's Kikkoman Corp. - with ingredients.
Del Monte Pacific's interests also include a 93% stake in a holding company that owns 50% of Indian venture FieldFresh Foods. The venture, in which Indian conglomerate Bharti Enterprises owns the other 50%, sells products under the Del Monte and FieldFresh brands in India.
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