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 percent rise in first quarter (Q1) sales totaling P10.2 billion, fueled by a 20 percent surge in international sales as a result of strong exports of fresh and packaged pineapple. The Philippine market also rebounded impressively, with DMPI’s net profit soaring by 52 percent to P1.0 billion, indicating a powerful turnaround over the same period.
The Philippine market delivered sales of P4.5 billion, reflecting a 6.5 percent 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.
New sales leadership
Under new sales leadership, DMPI revitalized its brand presence with improved offtake, responding to 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 Del Monte Phl’s strategies.
Also experiencing vibrant recovery is the beverage segment, with back-to-back marketing campaigns across various brands. The Group kicked off the year with its “Give in to Goodness” simmer campaign, effectively addressing the heat wave affecting the country.
The 100 percent Pineapple Juice line has thrived under the successful “HeartSmart” campaign, promoting its cholesterol-lowering benefits. Additionally, Fit ‘n Right Green Apple flavor, featuring L-Carnitine and Green Coffee Extract which aids in fat-burning, was introduced.
Culinary segment
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 popular ingredient for desserts and the Today’s brand enhancing its presence in regional festivities. This strategy has resulted in a significant four 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 Europe, Middle East, Africa (EMEA) and Asia have risen, with 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.
Impressive performance
Commenting on DMPI’s impressive performance, Luis Alejandro, DMPI president and chief operating Officer said, “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,” he said.