In a disclosure to the Singapore Mainboard and Philippine Stock Exchange, DMPL said it posted sales of $446 million in the first quarter of its fiscal year 2015, with $340 million contributed by Del Monte Foods, Inc (DMFI).
The acquisition-related costs included higher interest expenses from a long-term loan to acquire DMFI and short-term bridge financing of DMPL, which will be refinanced with an equity offering in the Philippines.
"While first quarter sales decreased by 1% versus the prior year period, this was a marked improvement from the 17% decline during the Transition Period of February to April 2014, where sales were affected by inherited higher product pricing and changes to product labels,” said Nils Lommerin, Chief Executive Officer of Del Monte Foods.
Lommerin said the company has adjusted the price of its products to "competitive" levels, re-introduced the classic label and undertook aggressive promo campaigns to regain market share.
"In the Packaged Vegetable and Tomato segments, we have stabilised market shares while in Packaged Fruit, we have improved it," he said.
DMFI said it will also outsource back office functions to the Philippines in February 2015, a move that is expected to improve the group's gross margin for its fiscal year 2016.
Meanwhile, DMPL said Del Monte sales in the Philippines and S&W branded products in the rest of Asia jumped 10 percent. The branded business in Asia and export sales globally generated sales of $120.6 million and net profit of $6.4 million, before acquisition-related expenses.
"The Philippine market performed well and the S&W brand has continued on its growth momentum in Asia... We are also encouraged by the good progress thus far made in the integration of DMFI along with the business development and cost savings initiatives," Joselito D Campos, Jr, Chief Executive Officer and Managing Director of DMPL, said.
source: www.abs-cbnnews.com
