Del Monte sales fall 8%

MANILA, Philippines — Food and beverage conglomerate Del Monte Pacific Ltd. (DMPL) reported an eight percent decline in its Philippine sales for the fiscal year ending April due to the transition in its distributor network.

In a disclosure to the Philippine Stock Exchange, DMPL said the decline in sales in the domestic market was mainly in the general trade, beverage and culinary categories.

“The short-term decline in sales was mainly due to the transition to new distributors with the aim of enlarging and strengthening the group’s distributor network in the Philippines,” the company said.

DMPL generated sales of $2 billion during the year, an 11 percent decrease from a year ago. The company attributed the decline to the sale of its Sager Creek vegetable business as well as lower sales in the US, which dropped 14 percent.

In contrast, sales in South and West Asia grew nine percent during the period, due to strong sales of fresh pineapple, which offset lower packaged sales

The company reported a net income of $20.3 million, a turnaround from a net loss the previous year.

In the fourth quarter of its fiscal year, DMPL registered sales of $432.6 million, 13 percent lower than the prior year.

DMPL said it continues to diversify beyond the canned goods line, a declining category, as it introduced four new innovative products in the growing categories of refrigerated produce and frozen food to cater to demand for health and wellness, snacking and convenience.

Among these new products are the Del Monte Citrus Bowls, Del Monte Fruit Crunch Parfaits, Del Monte Veggieful Bites and Contadina Pizzettas.

“We are encouraged by the accelerated pace of innovation and new product launches especially in the United States, taking us into new categories and formats outside the can which is not growing,” DMPL CEO Joselito Campos Jr. said.

“At the same time, we have proactively reduced costs within our control amidst headwinds of rising tin prices. We are pleased to deliver a full year net income for DMPL, driven by our results in Asia, while we invest in transforming our US business,” he added.