DEL MONTE Pacific Ltd. announced that its net profit for the nine-month period in 2021 was up 64% or $80 million due to higher sales and exports.
In the third quarter of 2021, Del Monte Pacific sales grew by 5% to $659.4 million on higher sales in the United States and fresh pineapple exports.
US subsidiary Del Monte Foods, Inc.’s net profit tripled to $35.2 million, while Del Monte Philippines, Inc. rose 15% to $81.5 million.
“Del Monte Foods, Inc. sales increased by 6% on higher branded retail primarily canned vegetable and fruit which more than offset the planned reduction of low-margin private label,” the company said in a statement on Thursday.
“Del Monte canned vegetables, which had the highest contribution to branded retail sales, saw a four point increase in market share on the back of strong commercial execution, increased distribution on core products, new products including multi-packs, and superior supply chain service. Canned fruit and fruit cup snacks also registered a higher share,” it added.
Meanwhile, Del Monte Philippines, Inc., achieved sales of $197.1 million, on higher exports of fresh pineapple to North Asia.
“Sales in the Philippines recovered after two quarters of decline coming off a very strong financial year in 2021 … driven by good performance of both core categories, packaged fruit and beverage, and new products. Beverage increased by 7% behind consumer upsizing to better value multi-serve carton packs,” the company said.
“Cost headwinds in the third quarter were quite significant impacting margins and profits. Our strong results for the first nine months allowed us to be substantially ahead of last year. While the road ahead has many challenges, we remain relentless in our revenue-enhancement and razor-focused on cost-saving initiatives,” said Del Monte Philippines’ Chief Executive Officer Joselito D. Campos, Jr. — Luisa Maria Jacinta C. Jocson