Q1 2025 Del Monte Pacific Ltd Earnings Call Transcript
Key Points
- Del Monte Philippines saw a 13% increase in sales in Q1, driven by strong marketing efforts and a resurgence in market operations.
- The international market experienced 20% growth, particularly in fresh fruit operations in China, South Korea, and Japan.
- Operating profit increased by 46% and net profit by 52% in Q1, indicating strong financial performance.
- The company has implemented corrective measures in plantation operations, expecting full recovery in productivity within two years.
- Del Monte Foods in the US has taken proactive steps to cut costs and reduce labor, showing improvement in pack season performance.
- Del Monte Foods in the US is facing financial and operational difficulties, requiring new financing and support from the parent company.
- High inventory costs from previous years are still impacting financial performance, with significant profit leaks due to excess inventory.
- The company has stretched payables, indicating pressure on maintaining commitments with vendors.
- The Philippine unit's plantation productivity was severely impacted by record-breaking rainfall in 2022, with full recovery expected only in two years.
- The US market is seeing a shift in consumer preference from packaged to fresh and refrigerated fruits, impacting the center store fruit business.
Okay. It's 9:00 in the morning. Good mo rning, and thank you for joining Del Monte Pacific's results briefing for FY25 first quarter ending July. Representing Del Monte in this call are Luis Alejandro, Group COO of Del Monte Pacific, DMPL and President of Del Monte Philippines; Parag Sachdeva, Group CFO of DMPL; Greg Longstreet, President and CEO of Del Monte Foods in the US; and I am Iggy Sison, Chief Corporate Officer of DMPL.
In the interest of time, we will now go directly to Q&A, which will be moderated by our colleague, Jennifer Luy.
Questions & Answers
Good morning, everyone. (Event Instructions) We don't have any type in questions yet. So maybe I can start for Cito for Del Monte Philippines. Can you share with us what were the measures you took to turn around Del Monte Philippines? And do you think these will be sustained?
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