Singapore Mainboard- and Philippine Stock Exchange-listed Del Monte Pacific Ltd. (DMPL) saw a modest growth in its second-quarter and first-half performance.
In a filing with the Philippine Stock Exchange, DMPL disclosed on Tuesday that it posted higher second-quarter 2013 sales of $121 million and net profit of $6.1 million, up 11 percent and 2 percent, respectively, from the fig- ures posted in same period last year.
For the first half of 2013, the group generated sales of $208.4 million, 14 percent higher than the prior period’s $183.6 million, while net profit for the period grew 2 percent as well to $10.6 million.
The modest growth was from better performance from its branded and nonbranded businesses, the company said.
“The group’s branded business continues to grow strongly, supported by im-proved trade coverage and advertising, entry into new markets and increased capacity of the ready-to-drink beverage which came onstream in June,” said Joselito Campos Jr., managing director and chief executive officer of DMPL.
The branded business of DMPL in Asia, comprising of Del Monte in the Philippines and the Indian subcontinent, as well as S&W in Asia and the Middle East, accounted for 66 percent of total sales of the company in the second quarter.
Also, the group’s operating profit rose 12 percent to $10.2 million as a result of better top-line performance.
However, net profit of the company went up at slower rate of 2 percent to $6.1 million due to one-off expenses and currency translation.
DMPL said that it incurred one-off fees in relation to the dual listing of its shares on the Philippine Stock Exchange in June, and incurred an unrealized foreign exchange loss due to the weaker peso against the US dollar in May and June, which affected translation of trade payables and loans.
Stripping out the nonrecurring expense and foreign exchange impact, net income of the canned fruits and beverage maker would have grown by 13 percent.
Sales of DMPL in the Philippines grew 8 percent, driven by better performance of the processed fruit and culinary segments, while volume of both segments expanded by double-digits, largely due to improvements in consumption frequency.
Barring unforeseen circumstances, the group expects to improve earnings in 2013 led by its branded business, with higher revenue from better volume and sales mix in the Philippines and S&W markets.