PC Lee  6/09/2019, 1:38pm

SINGAPORE (Sept 6): Del Monte Pacific reported a net attributable loss of US$38.3 million, or loss of 2.22 US cents per share, for 1Q20 ended July, compared to earnings of US$3 million in 1Q19, on lower sales and one-off tax expense.

Revenue for 1Q20 came in at US$375.9 million, down 14% from a year ago mainly due to the divestiture of the Sager Creek vegetable business in September 2017, lower sales in the US and lower exports of processed pineapple products, partly offset by higher sales in the Philippines and S& W business in Asia.

Stripping out Sager Creek&rsquo s sales, Del Monte Pacific said group revenue for 1Q20 would have been lower by just 9.2%.

In preparation for its capital raising initiatives, Del Monte Pacific&rsquo s Philippine subsidiary, Del Monte Philippines Inc, also declared a dividend to its parent company which was taxed at US$39.6 million   - an amount that contributed to its net loss.

Excluding one-off items, Del Monte Pacific would have posted a recurring net income of US$4.1 million, a turnaround from the net loss of US$3.7 million in 1Q19.

Geographically, Del Monte Pacific&rsquo s US subsidiary, Del Monte Foods, Inc (DMFI) generated US$241.4 million or 64.2% of group sales. The drop of 21.7% from US$308.3 million a year ago was mainly driven by the Sager Creek divestiture, and lower private label and USDA sales. Volume decline in packaged fruit was due to the impact of pricing.

 

 

Reversing a decline in FY19, sales in the Philippines domestic market grew by 2% in peso terms and 4% in US dollar terms due to peso appreciation. Retail sales grew by 4% in volume and 9% in peso sales value.

Sales of the S& W branded business in Asia and the Middle East grew strongly by 19% in the first quarter mainly driven by higher sales of fresh pineapple in North Asia. Fresh sales, both branded and non-branded, improved by 28%. S& W packaged product also delivered higher volume and sales. The S& W business generated a much higher operating income, up 22% due to higher volume.

In its outlook statement, Del Monte Pacific expects to be profitable in FY20 on a recurring basis.

Apart from strengthening its product offerings and entering new categories, Del Monte Pacific said it will grow its branded business and reduce non-strategic, non-branded business segments.

The group will also continue to review its manufacturing and distribution footprint in the US to further improve operational efficiency, reduce costs and increase margins amid expected cost headwinds including rising metal packaging prices and impact of tariffs imposed by the US.

Meanwhile, certain one-off expenses are expected in FY20 from streamlining of operations. On Aug 20, DMFI announced the closure and sale of facilities in four locations. Most of the production in these locations will be transferred to other facilities within the US.

&ldquo The restructuring is a necessary step for us to remain competitive in a rapidly changing marketplace,&rdquo says Joselito D Campos, Jr, DMPL&rsquo s managing director and CEO, &ldquo our asset-light strategy will lead to more efficient and lower cost operations.&rdquo

Del Monte Pacific did not declare dividends in 1Q20, with the last dividend declaration being in June, based on FY19 results.

As at 1.20pm, shares in Del Monte Pacific are trading at 14 cents, down 4 cents year to date.

SINGAPORE (Mar 8): Del Monte Pacific has announced a net profit of US$2.6 million ($3.5 million) for the 3Q ended Jan, turning around from the US$38.4 million loss a year ago due to improved margins

Excluding one-off items, the group would have registered a 3Q net income of US$3 million, down 11.2% from US$3.4 million a year ago due to the change in the US tax rate.

EBITDA grew 13% to US$39.7 million from US$35.1 million a year ago, although without the one-off expenses related to plant closures in the US, its recurring EBITDA would have been US$40.6 million versus US$46.4 million a year ago.

In the latest quarter under review, Del Monte generated US$528.7 million in revenues, down 12% from US$599.8 million the year before due to lower sales from the divested Sager Creek business, as well as lower private label sales.

While e-commerce sales in the US grew by double-digit volumes in 3Q, sales in the Phillipines domestic market fell 6% in peso terms and 10% in US dollar terms, mainly in the general trade and mixed fruit category due to operational issues in that channel.

Meanwhile, Del Monte says it continues to address these issues as its key foodservice channels continue to grow.

Gross margin nonetheless improved by 2.2 percentage points to 22.1% mainly driven by a better sales mix for the S& W business, which also saw higher sales due to higher sale volumes of fresh pineapple in North Asia, which offset sales declines in packaged products.

For the 9M ended Jan, Del Monte reported earnings of US$14 million against a loss of US$40.5 million. Excluding one-off items, 9M earnings would have been US$6.6 million, down 55.7% million from US$14.9 million a year ago.

While the group says it continues to face headwinds due to shifts in consumer demographics, Del Monte maintains it has the potential to greatly extend the reach of the Del Monte brand to its growing store perimeter, while allowing both Del Monte Foods, Inc and Fresh Del Monte Produce to optimise economies of scale.

Looking ahead, it expects to remain profitable in FY19 as it explores e-commerce opportunities for its range of products across markets.

As at 3.11pm, shares in Del Monte are trading flat at 15 cents.

SINGAPORE (Dec 13): Del Monte Pacific (DMPL) reported a 2Q earnings of US$8.4 million ($11.5 million), a turnaround from the US$2.8 million loss last year. This brings 1H earnings to US$11.4 million, reversing from the loss of US$2.1 million last year.

DMPL generated second quarter sales of US$556.3 million, 11% lower than prior year quarter mainly due to the planned divestment of the Sager Creek vegetable business in September 2017 and lower sales in the United States. Stripping out Sager Creek&rsquo s sales, second quarter group sales would have been lower by 6%.

US subsidiary Del Monte Foods Inc (DMFI) contributed US$418.5 million or 75% of group sales. DMFI sales declined by 14% mainly due to the divestment of Sager Creek and lower retail sales including private label, in line with DMFI&rsquo s strategy to shift its focus away from non-profitable businesses.

DMPL ex-DMFI generated lower sales of US$147.9 million. Sales in the Philippines domestic market decreased by 3% in peso terms and by 8% in US dollar terms as the group continues to address operational issues in the general trade and mixed fruit category. Sales of the S& W branded business in Asia and the Middle East improved by 17% in the second quarter due to strong sales of fresh pineapple in North Asia.

The group&rsquo s EBITDA of US$46.3 million was 62% higher than prior year quarter&rsquo s EBITDA of US$28.6 million. This quarter&rsquo s EBITDA included a US$1.3 million one-off credit from sale of assets written down from the closures of several facilities in the US.

In the same period last year, these plant closures and Sager Creek divestiture also resulted in one-off expenses amounting to US$23.6 million pre-tax.

In its outlook, DMPL says it faces headwinds due to shifts in consumer demographics, shifts in the way US consumers are eating and shopping, as well as shifts in consumer preferences. However, the group is expected to be profitable in FY2019.

Year to date, shares in DMPL are down nearly half to close at 15 cents on Wednesday.

https://www.theedgesingapore.com/del-monte-pacific-swings-back-black-2q-absence-one-expenses

The initial public offering (IPO) was shelved in June due to &ldquo volatile market conditions&rdquo . It will relaunch this as the equity markets improve, it added.

Shares in Del Monte closed at 17.4 Singapore cents on Wednesday, unchanged.

https://www.businesstimes.com.sg/companies-markets/one-off-gain-lifts-del-monte-pacific-q1-income
 

SINGAPORE (Mar 8): Del Monte Pacific (DMPL) announced a 3Q18 loss of US$38.4 million ($50.5 million) due to one-off expenses, mainly due to a US$39.8 million write-off of deferred tax assets in the US, due to the change in US Federal income tax rate from 35% to 21%.

Without the overall one-off expenses, the group would have posted remained profitable with earnings of US$3.4 million ($4.5 million), down 70.6% from US$11.6 million a year ago on lower operating margin.

DMPL says companies in the US with deferred tax assets have similar write-offs due to the reduction in income tax rates. However, this should be more than offset by the reduced tax rates in future years which will be " substantial" .

Turnover for the quarter fell 0.7% to US$599.8 million compared to 3Q17&rsquo s restated revenue of US$604.2 million on lower contributions from Asia Pacific, which saw an overall 0.6% fall in contributions to US$140.1 million mainly due to a 19% decline in contributions from packaged fruit.

Nonetheless, the group notes that its US subsidiary, Del Monte Foods (DMFI) saw a marginal 0.2% growth in sales with positive sales performance seen for its new products, and higher market shares in the canned vegetable and fruit, plastic fruit cup and broth categories.

DMPL attributes this to increased marketing investments, compelling innovations, and strong execution against fundamentals at retail.

Total one-off expenses for 3Q amounted to US$41.8 million post-tax.

Aside from the aforemetioned write-off of deferred tax assets on a non-cash basis, DMFI also booked an additional one-off expense of US$6.8 million following the 2Q divestment of its underperforming Sager Creek vegetable business.

For 9M18, the group generated a net loss of US$40.5 million compared to its earnings of US$21.5 million a year ago.

&ldquo Our innovation and marketing initiatives, to build relevance through product differentiation, address consumer trends and expand distribution in key growth areas, especially in the United States are beginning to pay off,&rdquo says Joselito D Campos, Jr, managing director and CEO of DMPL.

&ldquo We also are focused on reducing our debt and on streamlining operations to become more competitive. Such measures are geared to work in tandem with revenue-enhancing initiatives to ensure a profitable and sustainable business in the long run,&rdquo he adds.

Shares in DMPL closed flat at 25 cents on Wednesday.

https://www.theedgesingapore.com/del-monte-pacific-posts-3q-loss-us384-mil-one-expenses-new-us-tax-rates