Del Monte Pacific Ltd. posted a $13.1 million loss in the first quarter of its fiscal year 2024, down 57.04 percent from last year’s $30.5 million.
Del Monte’s fiscal year ends in April.
Sales grew 13 percent to $516.7 million from $427.26 million, with better sales in the US and fresh pineapple exports.
“Philippines sales were higher in peso terms but flat in US dollar terms with the strengthening of the latter,” the company said.
Del Monte said US unit Del Monte Foods Inc. (DMFI) posted sales of $356.4 million, 69 percent of group sales.
DMFI’s volume grew 5 percent while sales improved 18 percent driven by pricing actions and strong growth and development of the company’s branded product portfolio in both traditional and emerging channels, the company said.
Del Monte said DMFI grew its leading market share positions across its core businesses of packaged vegetables, fruits, tomatoes and fruit cup snacks, with notable increases across its packaged fruit portfolio.
The Philippine business posted sales of $75.9 million, up 5 percent in peso terms but flat in dollar terms due to the peso depreciation.
“Sales of packaged fruit, beverage and culinary were higher, supported by compelling communication campaigns including Saucy Weekends campaign promoting tomato sauce, and value-for-money offers amidst the inflationary environment,” it said.
“Del Monte improved its market leadership shares in all its five core categories of packaged pineapple, mixed fruit, beverage, tomato and spaghetti sauces, with notable increases in fruits behind consumption-building efforts. Foodservice and convenience store channels continued their strong performance with sales up 25 percent and 16 percent, respectively, on new accounts, outlets and menu ideas,” it added.
Sales of fresh pineapple grew 23 percent, driven by increased sales of premium higher-margin S&W Deluxe fresh pineapples as well as better pricing.
“Our margins were under pressure with inflation while interest rates rose, affecting the Group’s bottom line,” said Joselito Campos Jr., Del Monte chief executive officer.
“We are determined to bring margins up in the second half of our fiscal year through a combination of price adjustment and cost reduction, including minimizing waste further by continuously improving processes, and leveraging technology to enhance efficiency and lower expenses. Reducing leverage and interest expense is a key imperative and we are exploring all options to strengthen our capital structure,” he added.
