In the fourth quarter, DMPL generated fourth quarter sales of US$499.0 million, 8.5% lower than a year ago. While sales were higher in the Philippines, these were offset mainly by lower, cyclical PJC prices in international markets, decreased exports of processed pineapple, and lower sales in the US. The group has been shifting to more branded consumer beverage given the volatile nature of industrial and commodity PJC.
For the fiscal year ended April, DMPL posted a net loss of US$28 million due to one-off expenses amounting to US$74 million for two plant closures in the USA as part of a planned programme to achieve operational efficiency and reduce cost in its US subsidiary, Del Monte Foods Inc (DMFI), plus the write-off of deferred tax assets due to a change in US tax rates.
With the divestiture of Sager Creek and closure of plants in the US, this will lead to improvement in margins starting FY2019 as well as stronger cash flow through lower inventories. Barring unforeseen circumstances, the DMPL Group is expected to be profitable in FY2019.
Shares in DMPL closed 0.4 cent higher at 18 cents.
