Del Monte Pacific Limited delivered a sharp profit surge in its third quarter spanning November to January as booming pineapple exports and resilient Philippine demand lifted sales and margins, highlighting the strength of its Asian core even as the group continues to rebuild its balance sheet.
The listed food and beverage firm posted third-quarter sales of USD243.8 million for the period ended January 31, up nearly 20 percent from USD203.4 million a year earlier. Net profit jumped to USD10.0 million, four times the USD2.5 million recorded in the same quarter last year.
Growth was fueled by higher exports of fresh and packaged pineapples as well as steady demand in the Philippine market.
The Philippines, where the Del Monte brand recently marked its 100th year, generated USD112.3 million in sales, rising about 5 percent in dollar terms on stronger volumes and improved pricing. Beverages, culinary products, dairy and snacks led the expansion while the company retained market leadership in packaged pineapple, mixed fruit and spaghetti sauce.
Overseas sales surged almost 34 percent to USD110.8 million, driven by higher shipments of fresh pineapple, packaged fruit and not-from-concentrate juice.
Fresh pineapple sales rose about 26 percent, supported by strong demand for the S&W Deluxe variety, while packaged pineapple and juices jumped nearly 47 percent, aided partly by supply timing.
Gross margin widened to 32.7 percent from 28.6 percent a year earlier as pricing gains and a richer product mix boosted earnings. EBITDA climbed 16 percent to USD42.8 million.
The momentum helped offset lingering balance sheet pressure following last year’s restructuring.
The group still carries a capital deficit of about USD589.9 million, though it has begun trimming non-core assets such as its stake in India’s Sundrop Brands Limited.
The numbers are a signal to Del Monte that its strategy of focusing on Asian operations and premium pineapple exports is starting to bear fruit.
Del Monte is an investment holding company whose subsidiaries are primarily engaged in the cultivation, processing and marketing of packaged fruits and vegetables, as well as tomato products, sauces, condiments, pasta and broth. These products are sold under well-known brands including Del Monte, S&W, Today’s, Contadina and College Inn, among others.
