Del Monte expects to stay profitable in 2027
Del Monte Pacific Ltd. (DMPL) expects to remain profitable in fiscal year 2027 despite mounting cost pressures and a heavy debt load, banking on its Asian operations and restructuring efforts to sustain its turnaround.
The food and beverage company said Thursday its underlying business remained strong even as the operating environment continued to be challenging.
It expects targeted operational improvements and a “disciplined restructuring plan” to support long-term growth.
DMPL entered fiscal year 2027 on stronger footing. Net profit from continuing operations nearly tripled to $16.1 million in the quarter ended July from $5.5 million a year earlier.
Sales grew 9 percent to $222.1 million, driven by international markets. Earnings before interest, taxes, depreciation and amortization, or Ebitda, climbed 25.7 percent to $49.3 million.
Gross margin improved to 33.7 percent from 32.5 percent.
The improvement came despite softer demand at home. Philippine sales reached $82.6 million, up 2.2 percent in peso terms but down 6.9 percent in dollar terms due to the peso’s depreciation.
DMPL said measured price increases supported local sales, although volumes in its core segments remained soft as consumers felt the impact of economic volatility.
International sales jumped 21.4 percent to $118 million on higher volumes of fresh pineapple, packaged products and not-from-concentrate juice.
The company maintained a 54-percent share of the imported fresh pineapple market in North Asia.
Still, DMPL faces significant financial challenges. The $703-million write-down of its US business at the end of fiscal year 2025 left the group with negative equity of about $579 million as of July.
