Wednesday, June 29, 2016

Del Monte Pacific back in the black with FY16 earnings of US$51.5 mil

Del Monte Pacific has swung back to profitability in FY16 on one-off gains.

For the 12 months ended April, earnings came in at US$51.5 million ($69.7 million) compared to a loss of $32.2 million in FY15.

This was mainly due to one-off net favourable adjustments of US$31.7 million after tax mainly due to DMFI’s retirement plan amendment in the second quarter and working capital adjustment in the fourth quarter.

Excluding non-recurring items, core net income in FY2016 was US$19.8 million, still a big improvement from the reported loss of US$43.2 million last year.

Full-year revenue came in 3.7% higher at US$2.27 billion from US$2.19 billion a year ago.

Del Monte Pacific says its US subsidiary, Del Monte Foods, which accounted for 78% of Group sales, generated revenue of US$1.8 billion, 4% better than prior year.

DMFI increased its market share in the US canned vegetable and fruit segments amidst industry contraction.

The Philippine market also delivered a record performance for the full year with sales up 6% as all product categories – packaged fruit, beverage and culinary – posted higher sales, driven by an expanded user base and household penetration.

Sales of the S&W branded business in Asia and the Middle East also posted a record performance, growing by 10% on higher sales from both the fresh and packaged segments. China generated strong growth in fresh, driven by distribution expansion.

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