Del Monte Phl reports strong sales, profit growth

Del Monte Philippines Inc. (DMPI), a subsidiary of Singapore-listed and PSE-listed Del Monte Pacific Limited (DMPL), reported strong first-quarter financial results, highlighting a significant step towards sustainable growth and profitability.

DMPI's sales grew by 13 percent to P10.2 billion, driven by a 20 percent increase in international sales from robust exports of fresh and packaged pineapple. The Philippine market also showed impressive recovery, with net profit soaring 52 percent to P1.0 billion, reflecting a strong turnaround.

The Philippine market generated sales of P4.5 billion, marking a 6.5 percent increase. This growth was driven by strong performance across all key categories, including packaged fruit, beverages, and culinary products, which surpassed targets and outperformed the previous year’s figures.

With new sales leadership, DMPI has revitalized its brand presence, enhancing offtake and addressing rising food costs. The company has effectively tapped into growing demand in both modern and general trade channels. Notably, e-commerce sales have more than doubled, underscoring the success of its strategic initiatives.

The beverage segment is seeing a dynamic recovery, driven by consecutive marketing campaigns across multiple brands. The Group launched the "Give in to Goodness" summer campaign to tackle the country's heat wave effectively. The 100 percent Pineapple Juice line has flourished under the “HeartSmart” campaign, highlighting its cholesterol-lowering benefits. Additionally, the new Fit ‘n Right Green Apple flavor, which includes L-Carnitine and Green Coffee Extract, is poised to support fat burning.

In the culinary segment, Pasta Sauce is leading growth with a comprehensive program centered around 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 percentage point increase in Del Monte’s market share in Mixed Fruit to an impressive 80.3 percent.

Internationally, sales grew by an outstanding 20 percent 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.

Luis Alejandro, DMPI President & Chief Operating Officer, 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 U.S. 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.