Philstar.com
September 13, 2024 | 3:00pm
MANILA, Philippines — Del Monte Philippines Inc. (DMPI), a subsidiary of Singapore-listed and PSE-listed Del Monte Pacific Limited (DMPL), announced strong financial results for the first quarter, marking a significant leap towards sustainable growth and profitability.
DMPI achieved a 13% increase in first quarter sales to P10.2 billion, fueled by a robust 20% surge in international sales driven by strong exports of fresh and packaged pineapple.
The Philippine market also rebounded impressively, with DMPI’s net profit soaring by 52% to P1.0 billion, illustrating a powerful turnaround over the same period.
The Philippine market delivered sales of P4.5 billion, reflecting a 6.5% expansion. This growth was supported by all key categories of packaged fruit, beverage and culinary products exceeding targets and outperforming the same quarter last year.
Under new sales leadership, DMPI has revitalized its brand presence with improved offtake, responding to the growing demand in modern trade and general trade/distributor operations, while successfully navigating rising food costs.
Notably, e-commerce sales have more than doubled, highlighting the effectiveness of the company’s strategies.
The beverage segment is also experiencing a vibrant recovery, with back-to-back marketing campaigns across various brands. The Group kicked off the year with the energizing “Give in to Goodness” summer campaign, effectively addressing the heat wave affecting the country.
The 100% Pineapple Juice line has thrived under the successful “HeartSmart” campaign, promoting its cholesterol-lowering benefits. Additionally, the introduction of the Fit ‘n Right Green Apple flavor, featuring L-carnitine and green coffee extract, is set to aid in fat burning.
In the culinary segment, Pasta Sauce is leading growth with a comprehensive program centered on birthday celebrations. The Mixed Fruit category is also thriving, driven by the popularity of the Del Monte Fiesta brand as a delightful ingredient for desserts and the Today’s brand enhancing its presence in regional festivities. This strategy has resulted in a significant 4% point increase in Del Monte’s market share in Mixed Fruit to an impressive 80.3%.
Internationally, sales grew by an outstanding 20% to P5 billion, with all product categories—fresh, processed, frozen and NFC juice—demonstrating improved performance.
Export sales to EMEA and Asia have risen, with fresh sales flourishing in China, South Korea and Japan, bolstered by a heightened volume of premium S&W Deluxe pineapple.
Notably, S&W launched the Sweet 16 Pineapple Fresh Cut in all six Costco stores in East China in May 2024, while McDonald’s Hong Kong showcased the group’s pineapple slices and fruit cocktail in their summer offerings, including the ebi burger and refreshing pineapple soda.
DMPI president and COO Luis Alejandro commented on the impressive performance: “Our entire team at Del Monte has embraced the challenge, proactively addressing shortcomings, uncovering new opportunities and working tirelessly to execute our turnaround plan.”
Alejandro added, “Although DMPI’s parent company DMPL faced a first-quarter loss due to its US subsidiary’s performance, the commendable improvement in margins over the previous quarter is promising. We are diligently executing our strategic priorities to enhance operational and financial performance across all businesses. The significant increase in profitability for DMPI is a strong affirmation that we are on the right track.”
Del Monte remains steadfast in its commitment to strengthen its position and drive towards a sustainable and profitable future, with optimism and determination paving the way ahead.
Editor’s Note: This press release is sponsored by Del Monte Philippines. It is published by the Advertising Content Team that is independent from our Editorial Newsroom.
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