Del Monte Pacific wraps up Sundrop buy-in
Del Monte Pacific Ltd. has firmed up the expansion of its portfolio in India, having completed the acquisition of a stake in a consumer food product firm based in the world’s most populous country.
In a disclosure on Friday, Del Monte said that it now holds 14-percent indirect equity interest in Agro Tech Foods Ltd. (ATFL)—now named Sundrop Brands Ltd.—which is based in the city of Gurgaon, part of the National Capital Territory of Delhi.
ATFL, in turn, bought 100 percent of all shares in Del Monte Foods Private Ltd., which is based in the city of Gurugram in Haryana state.
Earlier, Del Monte said its investment in ATFL would allow it to tap into a “broader business that includes profitable product categories, which have yielded shareholder returns for several years.”
ATFL, which has a market capitalization of $274 million, is engaged in the food and edible oils industry.
With the acquisition of Del Monte Foods in India, ATFL rebranded as Sundrop Brands, representing one of its popular products—Sundrop edible oil.
Trimming losses
In the first half of its fiscal year that ended Oct. 31, 2024, the Campos-led canned food maker saw its losses soar by 160 percent to $56.3 million from $21.6 million in the same period the year prior.
The top-line figures improved by 4 percent to $1.2 billion, thanks to its Philippine operations.
Del Monte Philippines grew its net income by 78 percent to $40 million for the period. However, its US operations registered a 2-percent decline in sales.
In a bid to trim its losses, the company intends to lower its inventory level this year by 30 percent as it scales down production.
