Del Monte earnings skyrocket after shedding losing unit
The deconsolidation of its loss-making US unit, as well as strong sales and margins, resulted in the first-quarter net income of Del Monte Pacific Ltd. (DMPL) to skyrocket by more than 1,000 percent.
In a regulatory filing on Thursday, the Campos-led canned fruit maker said its net profit from May to July—the first quarter of its 2026 fiscal year—reached $5.5 million from $400,000 in the same period last year.
At the same time, sales jumped by 13 percent to $203.7 million. This was driven by growth in both the domestic and international markets.
“With strengthened brand equity, expanded market share and deeper household penetration, the company is well-positioned to sustain its growth momentum,” DMPL chief operating officer Luis Alejandro said in a statement.
DMPL’s Philippine business finished the quarter with $88.4 million in sales. This meant an increase of 10 percent on the back of strong demand across beverages, culinary essentials and packaged fruits.
International sales rose by 6 percent to $97.2 million. This was due to higher fresh pineapple sales in China and Japan, as well as an improved product mix and better pricing, according to DMPL.
“We remain sharply focused on our priorities, which include strengthening our balance sheet and ensuring the long-term stability of the business,” Alejandro said.
DMPL earlier said it was expecting to remain profitable during its 2026 fiscal year as it moves to leverage on the strength of its core Asian markets.
This, after it deconsolidated US arm Del Monte Foods Corp. II Inc. (DMFC). This means that DMFC is no longer counted in the group’s financial statements.
Bleeding in DMFC and adverse macroeconomic conditions in the United States resulted in a $703.5-million impairment loss for the group.
DMFC parent firm Del Monte Food Holdings Ltd. (DMFHL) filed for bankruptcy in July and put “all or substantially all” its assets for sale as part of a deal with lenders.
It received a commitment for $912.5-million debtor-in-possession financing to help sustain its operations while looking for other ways to settle its debts.
