Fruit grower and canner Del Monte Philippines Inc. said Tuesday net income in the fiscal year 2021 ending April climbed 33 percent to P4.6 billion from a year ago on improved sales and lower expenses.
DMPI, which is planning to conduct a P44-billion initial public offering later this year, said sales also climbed 8 percent to P34.5 billion.
Nearly two-thirds of DMPI’s sales are in the Philippines, with the balance in the international market.
“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,” DMPI chief executive Joselito Campos Jr. said.
“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,” he said.
DMPI’s sales in the Philippines grew by 10 percent to P19.2 billion, as strong retail sales more than offset the decline in food service sales because of the quarantine restrictions.
DMPI said sales volume of convenience cooking and dessert, beverages and snacks segments rose while spaghetti sauce, pasta, ketchup and packaged fruit products also performed well as a result of an increase in home cooking.
Export sales of packaged fruit and beverages rose 15 percent on higher demand across the Americas, North Asia and Southeast Asia.
“Across international markets, the increase in at-home consumption caused by lockdowns and related restrictions due to the COVID-19 pandemic increased the demand from the company’s international customers,” the company said.
DMPI is the market leader in packaged pineapple and mixed fruit, ready-to-drink juices (excluding foil pouches), tomato sauce and spaghetti sauce categories in the Philippines.
The company plans to sell up to 699.33 million secondary common shares with an over-allotment option for another 104.899 million shares at an offer price of up to P54.80 apiece.
Net proceeds from the offering of secondary shares will be used by parent firm Del Monte Pacific Limited to partially repay debts.
DMPI named BDO Capital & Investment Corp. and BPI Capital Corp. as joint local lead underwriters and bookrunners.
