Del Monte back in the black in Q3

DEL Monte Pacific reversed its loss to turn in a net profit of US$590,000 in the third quarter ended Jan 31, 2016, thanks to the absence of a large provision for inventory as well as foreign exchange losses it had recorded a year ago.

The group's revenue slipped 7 per cent to US$594.1 million, due to weaker sales in its US subsidiary Del Monte Foods Inc. This was partially offset by a better performance in the Philippines, which sales grew 6 per cent on the back of holiday season advertising campaigns.

The group is planning to issue up to US$360 million in US dollar-denominated perpetual preference shares in the Philippines later this year, which will further improve its leverage ratios, it said.

Shares in Del Monte closed 2.6 per cent higher at 39.5 Singapore cents on Friday, before the results announcement.