SINGAPORE (Dec 13): Del Monte Pacific (DMPL) reported a 2Q earnings of US$8.4 million ($11.5 million), a turnaround from the US$2.8 million loss last year. This brings 1H earnings to US$11.4 million, reversing from the loss of US$2.1 million last year.
DMPL generated second quarter sales of US$556.3 million, 11% lower than prior year quarter mainly due to the planned divestment of the Sager Creek vegetable business in September 2017 and lower sales in the United States. Stripping out Sager Creek’s sales, second quarter group sales would have been lower by 6%.
US subsidiary Del Monte Foods Inc (DMFI) contributed US$418.5 million or 75% of group sales. DMFI sales declined by 14% mainly due to the divestment of Sager Creek and lower retail sales including private label, in line with DMFI’s strategy to shift its focus away from non-profitable businesses.