Del Monte Pacific Limited (DMPL), a Singapore and Philippine-listed canned fruit maker, reported a net income of $5.5 million for the first quarter ending July, a sharp rebound from $400,000 a year ago, lifted by stronger sales and improved margins.

In a stock exchange report on Thursday, the company said revenues rose 13 percent to $203.7 million, driven by double-digit growth in the Philippines and steady gains in international markets.

The results excluded DMPL’s US operations, which were deconsolidated in May.

Gross margin, meanwhile, climbed to 32.5 percent from 27.6 percent last year, supported by higher sales volume, better pricing, lower cannery costs from improved pineapple recovery, and reduced plantation costs with the higher-yielding C74 pineapple variety.

Operating cash flow also rose to $76.8 million from $43.5 million, reflecting stronger profitability.

Strong Q1 performance

“Our strong first quarter performance underscores Del Monte’s ability to deliver consistent growth by balancing innovation, health and nutrition relevance, and affordability,” DMPL chief operating officer Luis Alejandro said.

“With strengthened brand equity, expanded market share and deeper household penetration, the company is well-positioned to sustain its growth momentum. We remain sharply focused on our priorities which include strengthening our balance sheet and ensuring the long-term stability of the business,” he added.