DEL MONTE Philippines, Inc. reported a 33 percent increase in earnings for its fiscal year ended April 30 due to higher sales, a better mix, lower costs, and increased efficiency.
The company’s net income increased to P4.6 billion from P3.47 billion the previous year, while gross profit increased by 21.5 percent to P10.4 billion.
“We concentrated on responding to consumer trends via product innovation and digital marketing, while also improving our operations and optimizing efficiencies,” Del Monte Philippines CEO Joselito D. Campos said in a statement on Tuesday.
Sales increased by 8% to P34.5 billion, with the Philippines accounting for two-thirds of the total. Sales in the nation increased by 10% to P19.2 billion, with retail sales offsetting a decrease in food service sales.
Sales volume rose for products in the company’s convenience cooking and dessert, healthy drinks, and snack sectors.
“The Company’s spaghetti sauce, pasta, ketchup, and packaged fruit goods did well as a consequence of a rise in home cooking, anchored on quality and nutrition, and communications targeting particular usage recipes and occasions,” according to Del Monte Philippines.
Despite the company’s low investment in new product promotion, its recently released fruit and yogurt-flavored Del Monte Mr. Milk drink and Del Monte Potato Crisp Biscuits achieved “high yearly sales levels.”
Meanwhile, the company’s premium fresh fruit sector witnessed increased sales volume, but a strong peso versus the US dollar limited revenue growth to 1%.
Due to the relaxation of logistical and retail limitations in China and other North Asian countries, the fresh fruit sector saw a 24 percent increase in sales in the second half. This enabled the business to fulfill demand for fresh pineapples while also adjusting product pricing.
Del Monte Foods, Inc., an affiliate company, has launched its deluxe gold pineapple, a “premium” pineapple produced by Del Monte Philippines. According to the business, it is a “top three exporter” of fresh pineapple to expanding North Asian markets.
Export sales of packaged food and drinks increased by 15% due to increased sales in the Americas, North Asia, and Southeast Asia, with the United States serving as the primary sales driver.
The firm attributed foreign customers’ increased at-home consumption to tight limitations imposed by the health situation.
Del Monte Philippines filed a registration statement with the Securities and Exchange Commission in April for a public offering of 699.33 million secondary common shares, with an option to sell up to 104.899 million common shares.
The offer comprises of existing shares held by subsidiaries of the publicly traded Del Monte Pacific Ltd.
Del Monte Philippines said it hopes to raise up to P44 billion from the offer, which is priced at P54.80 a share. The profits will be used by parent firm Del Monte Pacific to settle debts and redeem preferred shares, according to the business.