Del Monte Pacific sees net profits fall
Without the one-off items, DMPL posted a recurring net income of $17.2 million, up $14.8 million the previous year.
For the full year of fiscal year 2017, DMPL achieved a full year net income of $24.4 million, which included one-off expenses of $21.1 million from the closure of its North Carolina plant and a deferred tax write-off.
This was lower than the previous year’s $57 million, which in turn, included a net one-time gain of $31.7 million.
“Excluding these one-off items, the group’s fiscal year 2017 recurring net income would have been $45.5 million, a significant improvement from the prior year’s $25.2 million due to the strong performance of the Asian business,” DMPL said.
Joselito Campos Jr., managing director and CEO of DMPL, said the company would continue to invest in new products to grow the business.
“We continue to execute our strategy based on innovation and differentiation which is supported by strong merchandising and targeted marketing. This helped to deliver higher sales and increased market share in key categories in the United States.
Investments in new products and brand building will continue to be made in response to consumer demands and to secure a long-term growing and profitable business. As a result, profitability in the US is likely to be impacted,” he said.
In terms of sales, fourth quarter sales reached $545.2 million, up four percent on higher sales in both the US and Asia.
Sales in the Philippine market were softer in the fourth quarter while the group continues to maintain a healthy market share across the majority of its key categories.
Meanwhile, sales of the S&W branded business in Asia and the Middle East grew by double digit, driven by both the fresh and packaged segments.
Sales grew significantly in North Asia as S&W expanded its fresh fruit distribution in China and raised brand awareness through in-store sampling.
For the full year sales, DMPL recorded $2.3 billion in sales, down by 0.9 percent because of lower US sales.
Sales in the Philippines were higher for the full year driven by an expanded user base and household penetration, while S&W in Asia improved with better distribution and expansion through partnership and other initiatives.
source: philstar.com
