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Del Monte net income up 33% to P1.3 billion

Del Monte Philippines Inc. (DMPI) reported a double-digit climb in its bottom line in the first quarter of its financial year, driven mainly by higher sales during the period.

The company's net income jumped 33% to P1.3 billion as sales climbed 16% to P8.6 billion, mainly driven by higher international top line figures overseas and the reduction of corporate taxes under the CREATE Law.

International sales grew 37% to P3.3 billion, with pineapple sales up 29% as the company expanded its distribution coverage with 747 new stores for its top distributors in China.

Philippine sales, however, slipped 2% to P4.4 billion due to the drop in the healthy beverages and snacks category which offset the growth behind the convenience cooking and dessert category which covers packaged fruit, tomato sauce, and spaghetti sauce.

“We are committed to offering more value to our consumers as we enter new segments such as dairy with out joint venture partner Vinamilk,” CEO Joselito Campos Jr. said in a statement.

DMPI and Vinamilk in August announced a joint venture to expand further into the Philippine dairy sector, and import products from Vietnam and market them under a co-branded label.

DMPI was initially scheduled to hold its initial public offering in August with its debut on the local bourse on August 23, but this was delayed due to market volatility.

The company plans to raise as much as P44 billion through offering 2.797 billion common shares. — BM, GMA News