Del Monte Philippines, Inc. reported a 33 percent jump in net income to P4.6 billion for its fiscal year 2021 ending April on improved sales, favorable mix, lower costs and expenses, and greater efficiency.
In a disclosure to the Philippine Stock Exchange, DMPI sales improved 8 percent to P34.5 billion. Close to two-thirds of DMPI’s sales are in the Philippines, with the balance in the international market.
“In the year of our 95th anniversary, I am pleased with the strong performance delivered by the company, demonstrating the resilience of our business and the strategy we have in place,” said DMPI Chief Executive Officer Joselito D. Campos, Jr.
He added that, “During FY2021, we focused on adapting to consumer trends through product innovation and digital marketing, while, at the same time, strengthening our operations and maximizing efficiencies.”
Campos noted that, “These initiatives translated into sales growth in both our Philippines and international markets. This gives us confidence as we are well positioned to take full advantage of our market leadership and further accelerate our strategy across the region.”
DMPI’s sales in the Philippines grew by 10 percent to P19.2 billion, as strong retail sales more than offset the decline in food service sales due to the quarantine.
Sales volume rose in its Convenience Cooking and Dessert, and Healthy Beverages and Snacks segments. The Company’s spaghetti sauce, pasta, ketchup and packaged fruit products performed well as a result of an increase in home cooking.
Beverage sales likewise improved, with Del Monte’s equity associated with healthy and immunity-boosting products.
DMPI also initiated entry into the fast-growing ready-to-drink milk and biscuits categories which generated incremental revenue and profit for the company.
DMPI’s sales volume in Premium Fresh Fruit increased, but the stronger peso versus the U.S. dollar trimmed the revenue growth to 1 percent for this segment despite the challenges due to COVID-19 in the early part of the financial year and given the robust recovery and sales momentum later in the year.
Meanwhile, DMPI’s export sales of Packaged Fruit and Beverages surged 15 percent with better sales across the Americas, North Asia and Southeast Asia. The U.S. market was the main driver of sales.