DUAL listed Del Monte Pacific Ltd. saw its net loss reduced by half in the first three months of its fiscal year ending April 2016 on the back of higher sales and cost efficiencies.
In a statement, Del Monte said its net loss was dropped to $12 million from $21.9 million a year earlier as total sales went up 6 percent to $472.8 million.
It recorded a significant growth in earnings before interests, taxes, depreciation and amortization (EBITDA), reaching $17.3 million and achieving a turnaround from the $12.1-million operating loss in the same comparable period.
Del Monte is listed on both stock exchanges of the Philippines and Singapore.
“The net loss was attributed to DMFI’s [Del Monte Foods Inc.] first quarter being the seasonally weakest, in addition to expenses from the SAP implementation. The El Niño weather pattern also caused reduced pineapple supply in the Group’s plantation in the Philippines leading to lower exports,” the company said.
Del Monte said the group’s market share in core retail segments remained strong as DMFI cements partnerships with key retailers through investments in marketing and innovations.
“Our financial performance tends to be skewed towards the second half of our fiscal year when Del Monte is the brand of choice for festive occasions. As we continue to unlock the growth potential of our products, accelerate our penetration of the food service sector and ethnic Asian market as well as enter new vegetable segments, our results will improve further,” said Nils Lommerin, chief executive officer of DMFI.
Del Monte’s Philippine sales grew by 7 percent on the back of increased demand for packaged mixed fruits and beverages.
Sales of the S&W brand in Asia and the Middle East also improved by 10 percent during the quarter due to a boost in fresh pineapple exports, which offset the weakness in the packaged segment as a result of constrained supply.
The group’s share of loss in the FieldFresh joint venture in India was lower at $400,000 from $600,000 because of the robust performance of Del Monte packaged products, primarily led by better volumes in canned juice, olive oil and pasta.
“We have successfully laid a solid foundation from which we will execute our growth plans in the coming quarters. Barring unforeseen circumstances, we look forward to a return to profitability in fiscal year 2016, which will generate more free cash flow to allow us to deleverage further,” Joselito Campos Jr., Del Monte managing director and CEO, said.