Del Monte reverses losses

    271

    Del Monte Pacific Ltd. said its profit for nine months ending Jan. 31, 2021 reached $48.8 million, a reversal from a $69 million loss the prior year.

    Sales reached $1.7 billion, up 12 percent from last year’s $1.52 billion.

    Del Monte said US-based unit Del Monte Food Inc. (DMFI) posted sales of $1.2 billion, up 12 percent, accounting for 69 percent of group sales.

    “The group achieved close to a 3-fold increase in EBITDA (earnings before interest tax depreciation and amortization) to $235.8 million from US$86.3 million,” the company said.

    “DMFI’s asset-light strategy and other cost saving initiatives yielded about $34-35 million savings in the first nine months of this year, on track to recouping within two years the one-off expenses incurred from the plant closures last year,” Del Monte said.

    In the third quarter, Del Monte said sales reached $628.4 million, up 13 percent, driven by increased sales in the US, Philippines and international markets.

    DMFI generated 70 percent of the group revenues, at $440 million, up 12 percent, mainly driven by robust sales growth of 26 percent in the branded retail segment amidst the coronavirus pandemic.

    “Core categories of vegetable and fruit delivered substantial growth as consumers chose trusted, healthy and shelf-stable products for their meal preparation at home. E-commerce sales saw significant increase continuing the strong growth momentum,” the company said.