Del Monte returns to profit

Del Monte returns to profit

Produce giant Del Monte Pacific is back in the black again, with full year results showing an increase in profits, largely thanks to a one-off gain.
 
The net profit rose to US$51.5m, a significant turnaround from last year's loss of US$43.2m, while revenue rose 3.7% to US$2.2.7bn.
 
The u-turn in the group's fortunes was partially down to a one-off gain of US$8.4m after tax and improvements in the firm's cost structure. The company was also lapping a year when its financial performance continued to be impacted by the expense of its acquisition of Del Monte Foods consumer unit for US$1.68bn
 
The market in the Philippines performed particularly strongly, with sales up by 6% on the previous year, as all aspects of the business – packaged fruit, beverage and culinary – posted higher sales. Advertising campaigns in the region helped to increase household penetration and expand the user base.
 
Figures were also boosted by the resurgent multi-serve beverage segment, which benefited the one litre Tetra Juice Drink line.
 
The S&W branded business in Asia and the Middle East also posted a record performance, up by 10% on the previous year, while China saw strong growth in fresh, which was driven by distribution expansion.
 
"During the past year, we continued to lay the foundation for future growth and this is reflected in the sales and financial performance of Del Monte Pacific in FY2016," said Joselito D Campos, Jr, managing director and group CEO of DMPL.
 
"We drove improvements in our cost structure and better-aligned operations with our strategic direction to gain market share, increase margins and expand into adjacent categories as part of a long-range plan to grow sales and profits for the company in the years ahead."
 
The group, which is listed in both Singapore and the Philippines, has proposed a final dividend of 1.33 cents per share.