Del Monte Pacific Ltd. recorded a net loss in the second quarter of its fiscal year, led by lower sales in the United States and a decline in export receipts. The company posted an $8 million net loss during the August-to-October period, a reversal of the $50 million net profit last year.
Managing Director and Chief Executive Officer Joselito D. Campos, Jr. said: “We faced a tough quarter as lower pineapple supply, higher costs and consumer spending trends impacted our margins and operating performance. In addition, higher interest charges also affected the group’s bottom line. We expect that consumer spending will continue to be curbed by persistently higher living costs, mainly driven by high energy prices and rising borrowing costs. To address challenging market conditions, we will focus on effectively managing our inventory over the next nine to 12 months. Additionally, we will explore opportunities to enhance our capital structure, reduce leverage, and minimize interest expenses."
According to DMPL, it logged a 5% decline in sales to $667.1 million due to 2% lower sales in the US by subsidiary Del Monte Foods, Inc. (DMFI) worth $494.6 million, and lower exports of fresh and packaged pineapple by Del Monte Philippines, Inc. (DMPI).
Source: bworldonline.com