Del Monte Q2 net income up 38% to US$49.5 million

CANNED food brand Del Monte Pacific on Wednesday (Dec 7) posted a net profit of US$49.5 million for the second quarter ended Oct 31, up 38 per cent from a year ago.

The increase was driven by a notable rise in gross margin for its US subsidiary, Del Monte Foods Inc (DMFI), the group said in a filing on the Singapore bourse. DMFI’s gross margin went up from 24.9 per cent to 28 per cent, as a result of selected price increases in line with inflation, reduced sales of low-margin products, and expense reduction initiatives, Del Monte Pacific said.

In a call on Wednesday to discuss the earnings, company executives said that the group has been managing its operating expenses and embarked on cost-optimisation initiatives amid the current inflationary environment.