Del Monte said underlying business saw sales and profits grow in 2015/16

Del Monte said underlying business saw sales and profits grow in 2015/16

Del Monte Pacific has said it "looks forward" to a return to the black in its 2015/16 financial year after reporting annual losses of US$38m due to costs from its acquisition of Del Monte Foods' consumer division.

The company, listed in the Philippines and Singapore, indicated it expected "a sustained momentum and a return to profitability in fiscal year 2016".

In the year to 30 April, Del Monte Pacific generated a loss of $38m, up from $32.2m a year earlier.

It booked inventory charges of more than $24m related to the 2014 acquisition of Del Monte Foods' consumer business. The company also recorded interest expense of more than $25m.

Elsewhere in the business, Del Monte Pacific posted a write-off of $4.1m linked to its operations in Venezuela amid "unstable economic conditions and additional currency devaluation". A decision to implement an ERP programme also cost the group $9.1m.

Turnover more than doubled from $743.3m to $2.16bn thanks in part to the Del Monte Foods deal. The company booked an operating profit of $44.2m, versus an operating loss of $33.6m a year earlier.

Del Monte Pacific said the underlying business "performed well" with sales, EBITDA and operating income
up, resulting in a "much stronger cash flow position" for the group.

"Fiscal year 2015 was a year of transition, integration, and strengthening the core business. We
successfully laid a solid foundation from which we will execute our growth plans in the coming year.
Without the acquisition and non-recurring expenses, we look forward to a sustained momentum and
a return to profitability for the group in fiscal year 2016," CEO and MD Joselito Campos Jr said.