Del Monte Pacific announced today higher third quarter results with sales of US$116.6 million ($143 million) and net profit of US$8.3 million, up 11% and 7%, respectively from prior year quarter.
Group gross profit rose 16% in the third quarter to US$29.5 million from US$25.5 million on higher volume and better sales mix, mainly in the Philippines and S&W markets, with gross margin improving to 25.3% from 24.2%.
“Our branded business in the Philippines through Del Monte and Asia Pacific through S&W delivered another quarter of strong performance,” said Joselito D. Campos, Jr., Managing Director and CEO of Del Monte Pacific. “These lifted overall Group results despite the weak demand in the global export markets, especially Europe, and lower pineapple concentrate prices.”
The branded business of DMPL in Asia Pacific generated over two thirds of the group’s consolidated sales. Less than a third of the group’s turnover was from unbranded industrial and private label sales, including those covered by long-term supply agreements with other Del Monte companies.
Sales in the Philippines were higher due to strong growth across all product categories, in particular the beverage segment.
The S&W branded business, both processed and fresh, expanded by 26% to US$7.8 million mainly in Asia and the Middle East. The group’s unbranded business was down. Export sales dropped 15% in the third quarter. Export operating income was much lower, down by 60%. Weak demand, primarily in Europe, coupled with higher supply of pineapple, significantly reduced pineapple concentrate prices which led to lower sales and profitability in the export markets.
For the quarter, the group’s Indian joint venture posted higher sales in the processed foods business under the Del Monte brand. As a result, the group recognised a lower equity loss of US$1.4 million versus prior year quarter’s US$2.7 million, on better sales mix, reduced overhead and tighter management of expenses.
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