SINGAPORE (June 2017): Del Monte Pacific reported a 57.2% fall in FY17 earnings to US$24.4 million ($33.8 million) from US$57 million a year ago.

This was due to the one-time net gain of US$31.7 million mainly from Del Monte Food Industries’ retirement plan amendment and working capital adjustment last year.

Meanwhile, FY17 results included the US$21.1 million of one-off expenses that were primarily severance, closure of North Carolina plant, and write-off of deferred tax assets.

Excluding one-off items, earnings would have grown 80.1% to US$45.5 million.

For the full year, revenue fell 0.9% to US$2.25 billion from US$2.27 billion a year ago.

Del Monte Food Industries generated US$1.7 billion or 75.3% of group sales. This was lower by 4.6% versus prior year due to the impact of unsuccessful low-margin US Department of Agriculture bids from the second half of FY2016 plus reduced sales in private label and foodservice business lines following closure of the North Carolina plant.

There was an overall 6.2% increase in the Philippine market sales in peso terms, which was driven by strong momentum across major categories of packaged fruit, beverages and culinary driven by an expanded user base and expanded household penetration supported by new advertising campaigns and consumer communication.

Sales of S&W branded products in Asia rose double-digit versus last year on higher sales from both the fresh and packaged segments. This was driven by improved distribution and expansion in Asia through partnership and other initiatives.

Del Monte Pacific have declared dividends of 0.61 US cents per share for FY17, compared to 1.33 US cents declared a year ago.

The group said it expects its US business to improve its financial performance through procurement synergies and transformation, footprint rationalisation and optimisation of G&A (general and administrative) costs through the multiyear restructuring initiative that started in FY2016.

In the mid-to-long term, it said it would continue to strengthen its core business and develop new products in the US to unlock the growth potential of its products and brands.

The group expects its FY2018 financial performance to improve.

Shares in Del Monte Pacific closed at 34 US cents on Thursday.