Del Monte Pacific posts net profit of SS$75 million in second quarter

SINGAPORE - Del Monte Pacific Limited has reported a turnaround in its finances for the second quarter ending Oct 31, posting a net profit of US$53.3 million (S$75 million), up from just US$185,000 in the same period a year ago.

It also recorded a recurring net profit of US$18.8 million, after two years of losses.

The losses had been due to acquisition and transition-related expenses after the purchase of Del Monte Foods (DMFI) in October 2013.

Del Monte Pacific's sales in the second quarter rose 20 per cent from the same period a year ago to US$658.3 million, as its key branded business in the United States and the Philippines under the Del Monte brand, and the rest of Asia under the S&W brand, delivered significantly improved performance.

The firm is dual-listed in Singapore and the Philippines.

The firm also generated recurring pre-tax earnings, excluding one-off items, of US$73.8 million, almost double that of last year's.

"Our performance in the second quarter reflects the fundamentals that have been restored since the group's acquisition, coupled with effective promotion of our products in the retail channel along with cost optimisation programmes," said DMFI chief executive Nils Lommerin.

"We expect to maintain the momentum in the second half of our fiscal year having established Del Monte as the brand of choice for festive occasions. As we continue to unlock the growth potential of our products, accelerate our penetration of the food service sector and enter new vegetable market segments through Sager Creek, our results will improve further."