Del Monte boosts profit sans bankrupt US arm

Canned fruit maker Del Monte Pacific Ltd. recorded a sevenfold income growth in the second quarter of its fiscal year ending in October, thanks to strong demand here and abroad.

The company on Monday said its net profit had soared to $16.8 million during the quarter, significantly higher than $2.3 million a year ago. This brought its net income in the first half to $22.3 million from $2.7 million.

Gross margin also improved by almost 700 basis points to 34.2 percent from 27.6 percent on higher sales and cheaper production expenses.

Total sales rose 10 percent to $234.9 million, as its local and international operations improved sales, especially for fresh pineapple.

In the Philippines, sales climbed 7 percent to $121.7 million.

Sales from its business abroad also improved by 7 percent to $90.6 million on an increase in exports of fresh pineapple. Robust demand for NFC (not from concentrate) juice and frozen pineapple likewise provided further support.

Sales growth of the NFC juice segment hit 49 percent, propelled by the China and Europe markets. Frozen pineapple sales also had elevated sales, growing 21 percent in the second quarter.

Del Monte said the company secured a larger market share in North Asia, solidifying its status as “the preferred fresh pineapple supplier.”

“Strong demand for packaged pineapple and the expanded year-round use of mixed fruits led the Philippine growth,” it said.

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“Nutrition-led initiatives positioning pineapple as an everyday super fruit further strengthened consumer preference for natural, immunity-building options,” the firm added.

Del Monte is confident it will post better financials, especially after it deconsolidated its bankrupt US arm, Del Monte Foods Corp. II Inc. (DMFC). This means that DMFC is no longer counted in the group’s financial statements.

Due to economic challenges in America, the group previously logged a $703.5-million impairment loss.

Del Monte chief operating officer Luis Alejandro earlier expressed optimism that the group could keep the growth engine running after swinging back to profitability during its 2025 fiscal year that ended in April.