Del Monte Pacific swings into the red in Q3

Food and beverage firm Del Monte Pacific announced last month a planned initial public offering of its subsidiary, Del Monte Philippines Inc, on the Philippines Stock Exchange.
Food and beverage firm Del Monte Pacific announced last month a planned initial public offering of its subsidiary, Del Monte Philippines Inc, on the Philippines Stock Exchange.PHOTO: BLOOMBERG

Tax-related write-offs, costs over US plant closure lead to $51m loss

One-off costs related to a plant closure in the United States and the tax-related write-offs sent food and beverage firm Del Monte Pacific into the red for the third quarter.

The group incurred a net loss of US$38.4 million (S$51 million) for the three months to Jan 31, compared with a net profit of US$8.5 million last year.

The net loss included US$41.8 million in one-off expenses as Del Monte continued the shutdown of its tomato production facility in Plymouth, Indiana.

And its Del Monte Foods unit in the US wrote off US$39.8 million of deferred tax assets due to a change in the US federal income tax rate from 35 per cent to 21 per cent.

Excluding one-off expenses, third-quarter net profit stood at US$3.4 million, down from US$11.6 million in the previous year.

Sales for the quarter fell 0.7 per cent to US$599.8 million from last year, mainly due to a decline in the exports of its pineapple products.

Loss per share for the quarter was 2.2 US cents from earnings per share of 0.44 US cent in the same period last year.

  • AT A GLANCE

    REVENUE: US$599.8 million (-0.7%)

    NET LOSS: US$38.4 million

The mainboard-listed group announced last month a planned initial public offering (IPO) of its subsidiary, Del Monte Philippines Inc, on the Philippines Stock Exchange.

The IPO proceeds of up to US$320 million will be used primarily for debt repayment and general corporate purposes, which will reduce the group's leverage, Del Monte said.

Del Monte shares closed down 0.5 cent to 25 cents yesterday.

A version of this article appeared in the print edition of The Straits Times on March 09, 2018, with the headline 'Del Monte Pacific swings into the red in Q3'. Print Edition | Subscribe