DUAL-LISTED fruit canner Del Monte Pacific Limited (DMPL) reported net income of $8.5 million for its third quarter ending January 2017, a turnaround from a net loss of $4.8 million in the same quarter last year.
In a statement on Friday, the company said that without one-off items, its recurring net income for the third quarter was $11.6 million, or more than five times the $2.1 million posted in November 2015 to January 2016. Third quarter sales increased slightly to $604 million, it said.
“Our significantly higher profit was driven by strong sales in the Philippines and S&W Asian markets as well as operational efficiency improvements resulting in cost reduction. We continue to build on the consumption-driven growth in Asia as our team optimises opportunities in both the retail and food service sectors,” said Joselito D. Campos Jr., managing director and chief executive officer of DMPL.
“Meanwhile, our US business continues to be impacted by shifting consumer preferences, and our performance in the foodservice and private label sectors. We are implementing a strategy based on three innovation and differentiation in existing categories, while seizing opportunities in other categories and channels to address consumer demands,” he added.
DMPL said net income in the nine months to January declined by 38 percent due to the impact of one-off items.
“The Group achieved a net income of US$19.9 million, lower than prior year period’s US$32.3 million as the current year included one-off expenses of US$6.8 million, as mentioned earlier, while last year included a net one-time gain of US$23.3 million mainly from DMFI’s retirement plan amendment,” the company said.
Excluding the one-offs, core or recurring net income would have been $26.7 million, nearly three times the $9 million posted in the same period the previous year.
It said nine-month sales were down 2 percent at $1.7 billion on “lower US sales partly offset by robust sales in Asia.”
“As announced on 13 February 2017, the Company has extended its US$350 million Facility Agreement with BDO Unibank, Inc for two years effective 10 February 2017 on the same terms and conditions. The Company intends to refinance the BDO loan through the issuance of preference shares. The proposed issue will be up to US$360 million (with an initial tranche of up to US$250 million and the balance issuable within three years),” the company said.