DMPL earnings down for FY 2023

MANILA, Philippines — Del Monte Pacific Ltd. (DMPL) reported a net income of $16.9 million for fiscal year 2023, down from $100 million a year ago due to one-off costs.

Sales grew by three percent to $2.4 billion.

DMPL’s US subsidiary Del Monte Foods Inc. generated $1.73 billion worth of sales or about 72 percent of group sales. This was higher by five percent, driven by sustained growth across almost all categories, due to pricing adjustments to mitigate inflation, distribution gains for vegetable club and Joyba bubble tea, increased sales of fruit cups, as well as incremental sales of $35.1 million from Kitchen Basics.

Philippine market sales, meanwhile, were up by seven percent in peso terms, but down four percent in US 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., DMPL’s managing director and CEO.

“Barring unforeseen circumstances, the group expects to generate a higher net profit in fiscal year 2024,” DMPL said in a filing yesterday.

Moving forward, Campos said, the company is focused on widening distribution and expanding 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 said.

Campos also said the global environment remains unstable with certain cost pressures and consumers becoming more cautious with their spending.

As such, DMPL will remain vigilant in managing its operating expenses which include packaging materials optimization; power and fuel initiatives; investments to improve efficiency, productivity and minimize wastage, and product bundling initiatives in distribution centers.