Del Monte posts Q4 profit of $16.8m on one-off gain

For the full year, Del Monte Pacific posted a net loss of US$28.2 million, reversing from a net profit of US$24.4 million, due to the one-off expenses incurred in DMFI's two plant closures, and the write-off of deferred tax assets due to a change in
For the full year, Del Monte Pacific posted a net loss of US$28.2 million, reversing from a net profit of US$24.4 million, due to the one-off expenses incurred in DMFI's two plant closures, and the write-off of deferred tax assets due to a change in US tax rates.PHOTO: BLOOMBERG

If one-off excluded, it would have had loss of US$2.1m, due to lower export sales, among other things

Mainboard-listed Del Monte Pacific has reported a fourth-quarter net profit of US$12.3 million (S$16.8 million), up from US$2.9 million in the year-ago period, as a result of a one-off gain from the purchase of Del Monte Foods Inc (DMFI) loans at a discount in the secondary market, the group said yesterday.

DMFI is the group's subsidiary in the United States.

For the three months to April 30, earnings per share came in at 0.38 US cent, from 0.11 US cent last year.

However, excluding a net one-off gain of US$14.3 million, the group would have incurred a net loss of US$2.1 million against a net profit of US$17.2 million last year. This was due to lower export sales, significantly reduced pineapple juice concentrate(PJC) prices, and investments in trade spending and marketing to strengthen its core business in the US.

Turnover for the quarter was down 8.5 per cent to US$499 million.

"While sales were higher in the Philippines, these were offset mainly by lower, cyclical PJC prices in international markets, decreased exports of processed pineapple, and lower sales in the US," Del Monte said.

In April, the company paid dividends to holders of its Series A-1 and Series A-2 preference shares at a rate of 6.625 per cent and 6.5 per cent, respectively, per annum .

  • AT A GLANCE

  • REVENUE: US$499 million (-8.5%)

  • NET PROFIT: US$12.3 million (+321.5%)

  • DIVIDEND PER SHARE: nil (2017: 0.61 US cent)

No dividend for ordinary shares was proposed.

For the full year, the group generated a net loss of US$28.2 million, reversing from a net profit of US$24.4 million, due to the one-off expenses incurred in DMFI's two plant closures, and the write-off of deferred tax assets due to a change in US tax rates.

Excluding one-off items, the company would have registered a net profit of US$92.3 million, down 36.7 per cent from a year ago.

Total sales for the year came in at US$2.2 billion, 2.5 per cent less than the previous year, as higher sales in Asia were offset by lower sales in the US.

Del Monte shares yesterday fell 0.3 cent to 17.7 cents.

A version of this article appeared in the print edition of The Straits Times on June 30, 2018, with the headline 'Del Monte posts Q4 profit of $16.8m on one-off gain'. Print Edition | Subscribe