Del Monte Philippines Earns P1.3 Billion
Del Monte Philippines, Inc. (DMPI or the Company) grew sales significantly to P8.6 billion in the first quarter of FY2022 ending July, up by 16% compared to the prior-year quarter led by the international market.
Photo Insert: Del Monte Philippines pineapple field in Bukidnon
DMPI achieved much higher earnings growth, with net income increasing by 33% to P1.3 billion on improved sales and lower costs. More than half of DMPI’s sales are in the Philippines, with the balance in the international market.
DMPI’s sales in the international market grew by 37% to P3.3 billion on robust sales of Packaged Fruit and Beverages including premium packaged pineapple (Del Monte Deluxe Gold) in the USA, and S&W packaged products in Asia.
The Premium Fresh Fruit segment mostly branded S&W MD2 pineapple, increased sales by 29% as it continued its recovery from the first quarter last year which was impacted by the pandemic in China.
It achieved strong sales in the current quarter on the back of expanded distribution coverage with 747 new stores for the Company’s top three distributors in China. 3,000 Goodme and 1,000 ChaBaiDao fruit tea shops also used S&W pineapple in their offerings.
S&W fresh-cut pineapple was also the best-selling among fresh-cut pineapple products on South Korea’s largest e-commerce platform, Coupang.
DMPI delivered sales in the Philippines of P4.4 billion, slightly lower by 2%, as the 7% growth behind DMPI has forged a strategic alliance with Vietnam Dairy Products JSC (Vinamilk), a leading regional dairy company. DMPI and Vinamilk entered into a joint venture (JV) to expand further into the dairy sector in the Philippines, synergizing Vinamilk’s strength in dairy manufacturing and technology with Del Monte’s strength in marketing and distribution in the Philippines.
The JV will import products from Vietnam, and market them under a co-branded label through DMPI, leveraging the trust and affinity built for the Del Monte brand among Filipino consumers, as well as DMPI’s extensive distribution network and long-standing relationships with leading retailers and distributors throughout the country.