Fruit grower and canner Del Monte Pacific Ltd. said Monday net income in nine months ending January 2016 hit $41.9 million, a turnaround from the $23.9-million net loss recorded a year earlier.
Del Monte Pacific’s fiscal year starts May and ends April of the following year, in line with the financial report of US subsidiary Del Monte Foods Inc.
Del Monte Pacific said in a disclosure to the stock exchange revenues grew 6 percent in the nine-month period ending January to $1.7 billion, on higher sales from the US, the Philippines and Asia.
US subsidiary Del Monte Foods accounted for 80 percent of group sales and generated revenue of $1.4 billion, up 8 percent from a year ago.
The Philippine market also delivered good results with sales up 7 percent, driven by expanded penetration and increased consumption for juices, tomato-based sauces and packaged pineapple products.
Sales of the S&W branded business in Asia and the Middle East grew16 percent on higher sales from both the fresh and packaged segments.
Del Monte Pacific said barring unforeseen circumstances, it was poised to report a profit for the full fiscal year ending April 2016, a significant turnaround from the loss position a year ago.
The group said in the third quarter of its fiscal year alone, covering November to January, it generated sales of $594.1 million, down by 7 percent due to lower sales in Del Monte Foods of 9 percent mainly from unsuccessful government and co-pack contract bids.
Sales in Philippines rose 6 percent with effective holiday season advertising campaigns.
The rest of Asia under the S&W brand performed strongly and rose 35 percent. China and Japan markets grew significantly on higher sales of canned tropical fruit and fresh fruit.
“In the United States, lower sales to the government and co-pack sectors unfavorably impacted our third-quarter sales and may continue to impact our fourth quarter sales. We are reviewing our strategy for these channels as part of our long range plan to optimize sustainable sales and profits for the company in the coming year,” Del Monte Pacific managing director and group chief executive Joselito Campos Jr. said.
Del Monte said as a part of the group’s deleveraging plan, it intended to issue $360-million denominated perpetual preference shares in the Philippine capital market, to be listed in the Philippine Stock Exchange.
The group said it expected to launch the offering this year, subject to regulatory approval and market condition.