Fruit canner Del Monte Philippines Inc., an indirect Philippine unit of Campos-led listed firm Del Monte Pacific Ltd., on Tuesday said its net income for fiscal year (FY) 2021 ending April rose 33 percent to P4.6 billion from last year’s P3.5 billion.
Del Monte attributed the increase to improved sales, lower costs and expenses and greater efficiency. The company said sales during its fiscal year, which starts in May, were up 8 percent to P34.5 billion from last year’s P31.9 billion.
About two-thirds of the company’s sales came from the Philippines, while the international market accounted for the rest.
“In the year of our 95th anniversary, I am pleased with the strong performance delivered by the company, demonstrating the resilience of our business and the strategy we have in place,” Joselito D. Campos Jr., the company’s CEO, said.
“During FY2021, we focused on adapting to consumer trends through product innovation and digital marketing, while, at the same time, strengthening our operations and maximizing efficiencies. These initiatives translated into sales growth in both our Philippines and international markets. This gives us confidence as we are well positioned to take full advantage of our market leadership and further accelerate our strategy across the region.”
The company’s local sales grew by 10 percent to P19.2 billion, as strong retail sales more than offset the decline in food service sales due to the quarantine. Sales volume rose in its convenience cooking and dessert, and healthy beverages and snacks segments.
The company’s spaghetti sauce, pasta, ketchup and packaged fruit products performed well as a result of an increase in home cooking, anchored on quality and nutrition, and communications targeting specific use recipes and occasions. Beverage sales also improved, with Del Monte’s equity associated with healthy and immunity-boosting products, it said.
The company entered into the fast-growing ready-to-drink milk and biscuits categories with the launch of its two new products, which generated incremental revenue and profit for the company with no cannibalization on core categories, while expanding the brand footprint into daily snacking as a new consumption occasion.
The company said its sales volume in premium fresh fruit also increased, but the strengthening of the peso against the United States dollar trimmed the revenue growth to 1 percent for this segment.
The company said its export sales of packaged fruit and beverages rose 15 percent with better sales across the Americas, North Asia and Southeast Asia. The US market was the main driver of sales.
Del Monte Philippines in April has revived its plan to go public as it resubmitted its registration papers for its initial public offering with the Securities and Exchange Commission, hoping to raise as much as P44 billion.
Documents it submitted to the agency showed that the company will sell some 699.33 million in secondary common shares and an over-allotment option of 104.89 million common shares at P54.80 per share.
