Del Monte Q3 net profit surges from US$6.7m to US$30.2m

Published Wed, Mar 10, 2021 · 07:16 PM

CANNED-food brand Del Monte Pacific Limited on Wednesday reported a net profit of US$30.16 million for the third quarter ended Jan 31, nearly five times that a year ago, when its earnings were weighed down by one-off expenses.

Earnings per share for the quarter were 1.30 US cents, up from 0.09 cent a year ago.

Revenue for the quarter rose 13.1 per cent year-on-year to US$628.35 million, on the back of higher sales in both the Philippines - where Del Monte is from - and overseas amid the Covid-19 pandemic.

In particular, turnover from the US subsidiary Del Monte Foods, Inc, which accounted for 70 per cent of the group's revenue, rose 12.3 per cent on the year to US$440 million. This was mainly driven by sales of packaged vegetables and fruit during the pandemic, as well as e-commerce sales.

The group also brought down its net debt to US$1.3 billion from US$1.6 billion, and reduced its gearing to 2.2x from 3.3x equity a year ago, due to lower loans arising from improved operating performance, increased shareholder's equity from the sale of a 13 per cent stake in Del Monte Philippines, and profits generated this year.

For the nine months ended Jan 31, Del Monte Pacific recorded a net profit of US$48.76 million, reversing from a US$68.95 million net loss in the preceding year.


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This came as revenue rose 11.7 per cent year-on-year to US$1.66 billion. Earnings per share for the period stood at 1.75 US cents, versus a loss per share of 4.31 US cents previously.

Del Monte Pacific said it will continue to "optimise" its production facilities to meet the demand for its products, while implementing "strict safety measures" amid the ongoing pandemic. It will also strengthen the core business and expand the product portfolio in response to "market trends for health and wellness", while reducing non-strategic business segments.

The group added that it has been exploring e-commerce opportunities for its range of products across markets.

Del Monte Pacific also continues to explore the option of an initial public offering for Del Monte Philippines, "subject to market conditions".

On the Singapore bourse, shares of Del Monte Pacific - which is listed in Singapore and the Philippines - closed up 4 per cent at S$0.26 on Wednesday before the announcement.

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