Del Monte Pacific Ltd. registered a net loss of $40.4 million in a nine-month period ending January 2018, a turnaround from a net income of $21.5 million a year ago, following one-off expenses for DMFI’s plant closure and the write-off of deferred tax assets.
The fruit producer said excluding the one-off expenses, mainly the $39.8-million write-off of deferred tax assets in the US due to new tax rates, the group would have generated a net income of $14.9 million.
DPML in a disclosure to the stock exchange that despite the poor nine-month performance, it was expecting to be profitable in the fiscal year 2018.
Consolidated revenues in the nine-month period reached $1.7 billion, down from a year ago, as higher sales in Asia were offset by lower sales in the US.
DMPL’s second largest subsidiary, Del Monte Philippines Inc., generated sales of $420 million, up 8 percent in peso terms and 2 percent in US dollar terms from the same period last year.
DMPI’s sales comprised Philippine sales and exports under the S&W brand and private label.
The Philippine market sales in the first nine months went up, as the group continued to invest in driving inclusion of Del Monte products in consumers’ weekly menu behind 360-degree campaigns across brands.
Foodservice sales in the Philippines also continued to expand, riding on the rapid expansion of quick service restaurants and convenience stores.
DMPL managing director and chief executive Joselito Campos Jr. said the company was making strategic investments in trade spending and marketing to strengthen its core business in the US.
The group is also focused on reducing debt and 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,” Campos said.
DMPL said last month it planned to list wholly-owned subsidiary DMPI on the Philippine Stock Exchange to raise up to $320 million in proceeds.