Del Monte Philippines income up 33% in its FY ending April

MANILA, Philippines — Campos-owned Del Monte Philippines Inc. (DMPI) saw its net income grow 33 percent to P4.6 billion for its fiscal yearending April 2021.

Sales rose by eight percent to P34.5 billion.Close to two-thirds of DMPI’s sales are in the Philippines, with the balance coming from the international market.

The company focused on adapting to consumer trends through product innovation and digital marketing while at the same time strengthening operations and maximizing efficiencies.

“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,” Campos said.

Aside from strong sales, DMPI also initiated its entry into the fast-growing ready-to-drink milk and biscuits categories with the launch of Del Monte Mr. Milk, a fruit- and yoghurt-flavored milk drink, and Del Monte Potato Crisp Biscuits.

This generated incremental revenue and profit for the company with no cannibalization of core categories, while expanding the brand footprint into daily snacking as a new consumption occasion.

DMPI’s sales volume in Premium Fresh Fruit likewise increased, but the stronger peso versus the dollar trimmed the revenue growth to one percent for this segment, a positive performance nonetheless despite the challenges due to COVID-19 in the early part of the financial year and given the robust recovery and sales momentum later in the year.

Coming from a decline in the first quarter ending July, the segment turned around and delivered significant sales growth of 24 percent in the second half as logistics and retail restrictions in China and other North Asian markets eased.

This allowed DMPI to meet strong demand for premium fresh pineapples.

DMPI’s export sales of packaged fruit and beverages grew 15 percent with better sales across the Americas, North Asia and Southeast Asia.  The US market was the main driver of sales.

The company’s affiliate and customer Del Monte Foods Inc. launched the Deluxe Gold pineapple, a premium variety of pineapple grown by DMPI.

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.

In the Philippines, DMPI is the market leader in packaged pineapple and mixed fruit, ready-to-drink juices, tomato sauce and spaghetti sauce categories in the Philippines.