MANILA, SINGAPORE - Del Monte Pacific has reported its Q1 2016 financial results, showing sales increases in many categories such as Del Monte Foods, and Del Monte in the Philippines. The company says it expects this to be just the beginning of its financial gains this year.
“Our financial performance tends to be skewed towards the second half of our fiscal year when Del Monte is the brand of choice for festive occasions. As we continue to unlock the growth potential of our products, accelerate our penetration of the food service sector and ethnic Asian market as well as enter new vegetable segments, our results will improve further,” said Nils Lommerin, CEO of Del Monte Foods.
Overall, the company achieved 6% higher sales, hitting as high as $472.8 million, causing last year’s net losses of $21.9 million in Q1 to narrow down to only $12 million. Despite the net loss, Del Monte Pacific recorded significant growth in EBITDA equal to $17.3 million and achieved a turnaround from the $12.1 million operating loss last year.
According to a press release, Del Monte Pacific attributes its net loss to its first quarter being the seasonally weakest, in addition to expenses from the SAP implementation. The El Niño weather pattern also caused reduced pineapple supply in plantations in the Philippines leading to lower exports.
Other highlights from Del Monte Pacific’s Q1 report include:
- Achieved sales of $473 million, 6% higher year on year
- Sales of Del Monte Foods in the US grew by 10%
- Sales of Del Monte in the Philippines grew by 7%
- Recorded Group EBITDA of $17 million
- Narrowed net loss to $12 million versus prior year’s loss of $22 million
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