Del Monte Pacific Ltd. closed its 2023 fiscal year ending April with a profit of $16.9 million, down 83.1 percent from $100 million the previous fiscal year.
Sales grew 3.4 percent to $2.42 billion from $2.34 billion.
The diversified food company said earnings before interest tax depreciation and amortization was at $329.7 million, down 6 percent from $351.5 million.
The company said it realized a $50.7- million refinancing cost related to US unit Del Monte Foods Inc. (DMFI) that dragged the bottomline lower, as DMFI refinanced its loan with a long-term credit facility that has lower interest rates.
“DMFI generated $1.73 billion of sales or about 72 percent of group sales, higher by 5 percent driven by sustained growth across almost all categories,” it said.
Del Monte said its Philippine sales was up 7 percent in peso terms but down 4 percent in dollar terms on higher culinary, beverage and new product sales, while the international business delivered 11.5 percent higher sales on increased fresh and packaged product sales.
“The group’s increase in sales and leading market share across core products is an impressive achievement amid a highly challenging inflationary environment. As with most food companies, our margins were under pressure and impacted the Group’s profitability,” said Joselito Campos Jr., Del Monte chief executive officer.
“We are focused on widening our distribution and expanding our reach into other market segments. We are also paying extra attention to managing costs, minimizing waste by continuously improving processes, and leveraging technology to enhance efficiency and lower expenses. A major priority is to reduce leverage, strengthen our capital structure and bring down interest expense in the coming year,” he added.
Campos said Del Monte remains vigilant in managing its operating expenses as the global environment remains unstable “with certain cost pressures and consumers becoming more cautious with their spending.” – Ruelle Castro
