Del Monte Pacific Ltd. (DMPL) plans to “substantially increase” its MD2 fresh pineapple production to support higher exports, the company told shareholders in a meeting in Singapore on Tuesday.
The company expects to post higher profit this fiscal year ending April 2024 after recording a net income of $16.9 million the previous year despite a still challenging environment.
Del Monte Pacific said it will also work to improve on its working capital utilization, particularly in reducing inventory and lowering debt, to generate more cash flow and strengthen the balance sheet.
“Barring unforeseen circumstances, the Group expects to generate higher net profit in fiscal year 2024,” the company said in its presentation to shareholders submitted to regulators.
Del Monte said the global environment remains unstable with certain cost pressures and consumers becoming more cautious with their spending. It also expects its first quarter to be “adversely impacted by higher costs associated with prior year inventory and interest expense.”
Del Monte said it expects to see sales growth in Mexico, South America and Canada as it expands distribution channels in the markets.
In the US, it will also work to increase penetration in high growth channels.
