DMPL has 6,300 regular employees in the Group, close to 4,700 seasonal employees in the U.S. and about 17,700 service providers who work in different areas of our operations in the Philippines.

 

DMFI’s relationships with farmers extend to more than three generations.    Vegetables, fruits and tomatoes are contractually grown on farms. Some Del Monte fruit growers include farm families that have produced for Del Monte for over 70 years. Our Company’s growth has a positive benefit on farms across the U.S.

 

Our pineapple plantations in southern Philippines encompass 3 cities and 25 municipalities in Bukidnon and Misamis Oriental, Mindanao. Around 20,000 families or approximately 100,000 individuals directly or indirectly depend on the Company’s operations including fruit growers, harvesters, truckers, and maintenance crews.

 

1. Del Monte Pacific grew sales by 3% to US$2.4 billion on higher US and international sales.

 

2. Gross profit and EBITDA were down by 2.5% and 6.2% to US$607 million and US$329.7 million, respectively, on higher costs.

 

3. DMFI generated US$1.73 billion of sales or about 72% of Group sales, higher by 5%, driven by sustained growth across almost all categories, attributed to pricing adjustments, distribution gains for vegetable and JOYBA bubble tea, increased sales of fruit cups, as well as incremental sales of US$35.1 million from Kitchen Basics.

4. Philippine market sales were up 7% in peso terms, but down 4% in U.S. dollar terms, on higher culinary, beverage and new product sales, while the international business delivered 11.5% higher sales on increased fresh and packaged product sales.

 

5. Net income declined to US$16.9 million from US$100.0 million due to one-off costs of US$55.2 million (post tax and non-controlling interest), of which US$50.2 million was booked in the first quarter as DMFI redeemed its Notes and refinanced it with a long-term credit facility that has lower interest rates.

 

Without these one-off costs, DMPL EBITDA and net income would have been US$337.2 million and US$72.2 million, lower by 4% and 28%, respectively.

 

For more information on our performance, please refer to the Operating and Financial Review on pages 37to 44 of Del Monte Pacific’s FY2023 Annual Report.

 

 

 Directors and management attending DMFI's innovation activity

The Group recognizes the importance of building a strong partnership with its suppliers. DMPL conducts business with its customers conforming to integrity, mutual interest, and fairness.

 

1. The Group performs periodic audits of contract manufacturers and direct suppliers, including independent and unannounced audits to ensure quality assurance and compliance.

 

2. The Group expects suppliers to comply with its Supplier Code of Conduct. This includes, but is not limited to, the rights of their workers and people working for their suppliers, as well as the communities affected by their operations, and those raising any human rights concerns associated with them.

 

For details please refer to the policy at https://www.delmontepacific.com/hubfs/pdf/Supplier%20Code%20of%20Conduct.pdf

         

3. Del Monte Foods, Inc. (DMFI) is one of the largest producers, distributors, and marketers of premium quality, branded vegetables, fruits and tomatoes for the U.S. retail market. DMFI contracts with about 740 growers across the U.S. and Mexico, which supply about 870,000 tons of produce.

 

 

4. Del Monte in the U.S. has a Supplier Diversity Program that enables small and diverse businesses to be considered fairly as subcontractors and suppliers.

 

 

5. Close to 60% of DMPI’s suppliers are considered small and medium enterprises. These suppliers undergo the supplier accreditation process of the Company and are evaluated based on performance - quality, delivery, and competitiveness.

 

6. In selecting suppliers, DMPI applies its Supplier Quality Management Program to assess the quality and delivery performance, feedback, and continuous improvement programs for all material suppliers and toll manufacturers.