Del Monte Pacific Delivers Net Profit of $18m in Q1

Singapore Mainboard and Philippine Stock Exchange dual listed Del Monte Pacific Limited (“DMPL” or the “Group”; Bloomberg: DELM SP, DELM PM) reported today its first quarter FY2022 results ending July.

DMPL achieved another strong quarter of profitability with an EBITDA of US$75.0 million, a 77% increase from US$42.4 million. Net profit reached US$18.3 million, reversing the US$3.2 million loss in the prior year’s same quarter. The Group significantly improved its margins by 600 basis points to 28.9% from better sales of higher-margin branded products in the USA and lower costs.

The Group generated sales of US$462.1 million, up 12% versus prior year period on higher sales in the USA and international markets.

The Group’s US subsidiary, Del Monte Foods Inc. (DMFI), generated sales of US$298.1 million or about 65% of Group sales. DMFI’s first quarter sales increased by 11% on strong branded retail and foodservice which grew by a combined 17%, while sales of low-margin private label were reduced as planned.

Improvement in supply and distribution gains led to higher volume across major categories primarily canned vegetables and fruits.

DMFI’s innovation pipeline continued to offer exciting products to consumers. In the Snacking area, it recently launched Del Monte Fruit Infusions and Joyba Bubble Tea. Fruit Infusions are energizing fruit cup snacks infused with antioxidants and other healthy functional ingredients.

Joyba Bubble Tea is a new brand targeting Millennials and Gen Z with a line of boba shop-inspired beverages made with real brewed tea infused with vibrant fruit flavors and “popping” boba.

In the Meals area, DMFI continued its Frozen Foods expansion with the launch of Del Monte Veggieful Riced Veggies, a line of flavorful vegetables replacing the higher calorie and carbohydrate regular rice. New products launched in the past three years contributed 4.8% to DMFI’s total sales in the first quarter.

The Group’s second largest and most profitable subsidiary, Del Monte PhiIippines, Inc. (DMPI), achieved higher sales of US$176.0 million, up 20% versus the prior year period led by international market sales, boosting net profit by 37% to US$25.6 million and EBITDA by 19% to US$39.9 million.

DMPI benefited from the reduced corporate tax rate of 25% with the passage of the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) in March 2021. More than half of DMPI’s sales are in the Philippines, with the balance in the international market.