Del Monte posts Q4 net loss despite stronger sales

Del Monte Pacific posted a net loss of US$14.1 million (S$19.03 million) in its fourth quarter ended April 30, despite stronger sales of food and beverages.
Del Monte Pacific posted a net loss of US$14.1 million (S$19.03 million) in its fourth quarter ended April 30, despite stronger sales of food and beverages.PHOTO: BLOOMBERG

SINGAPORE - Despite stronger sales of food and beverages, Del Monte Pacific posted a net loss of US$14.1 million (S$19.03 million) in its fourth quarter ended April 30.

A bulk of losses were non-recurring expenses. These included a write-off of Del Monte's Venezuelan business amid unstable economic conditions and additional currency devaluation as well as the implementation of a new Enterprise Resource Planning (ERP) system across its various departments.

The net loss attributable to shareholders of US$14.1 million was also smaller than the net loss of US$38.7 million in the fourth quarter last year.

Del Monte posted fourth quarter sales of US$528.2 million ($712.8 million), up 45 per cent over the same period a year ago.

United States subsidiary Del Monte Foods Inc (DMFI) contributed a hefty US$423.4 million ($571.4 million) to total sales. The group had acquired DMFI in February last year.

Meanwhile, Del Monte's base business - comprising its branded business in Asia, the Middle East and global export sales - generated a turnover of US$121.7 million ($90.2 million) in the fourth quarter, up 54 per cent from a year ago.

Group operating profit in the fourth quarter was US$7.47 million ($5.54 million), reversing an operating loss of US$45.3 million ($33.6 million) a year ago.

For the full year ended April 30, Del Monte posted a net loss of US$38 million ($51.3 million) after acquisition and non-recurring expenses. Total sales stood at US$2.16 billion ($1.60 billion), up from US$743.3 million ($550.8 million) in 2014.

Del Monte is listed on the Singapore Exchange Mainboard and the Philippine Stock Exchange. Results were announced after the market closed.

The counter closed down 1.5 cents or 4.23 per cent at 34 cents on Monday.