DMPL, creditors in talks to extend debt payment deadline
Food manufacturing giant Del Monte Pacific Ltd. (DMPL) is in talks with creditors to extend the maturity of debts falling due in fiscal year 2026, alongside plans to raise fresh equity as it grapples with a $600-million capital deficiency.
Nonetheless, DMPL said it was confident in its ability to maintain uninterrupted business operations and meet obligations as they fall due over the foreseeable future.
“The group is in discussion with partner banks to extend maturities or refinance existing debt including amortizations that are falling due in fiscal year 2026,” DMPL disclosed to the Philippine Stock Exchange on Wednesday.
In addition, the Campos family-led consumer firm said it continued to find new sources of funding to improve cash management.
The company has received new proposals from reputable financial institutions for new long-term loans and continues to get incremental short-term lines from partner banks to meet its short-term obligations, according to the disclosure.
“The Group is also embarking on equity raising initiatives and has appointed financial advisors to support the process,” it added.
As of July 31, the group reported net capital deficiency of $600.4 million. The significant decline in equity was attributed to the unfavorable results from its US operation, as well as the full impairment of investment and other assets in its US subsidiaries. Its loss-making American unit, Del Monte Foods, filed for bankruptcy court protection in July.
Current liabilities of the group exceeded current assets by $600.4 million, largely due to the revolving nature of the local banks’ facilities tapped by its Philippine subsidiary, Del Monte Philippines Inc., the disclosure said. The loan proceeds were primarily used in pineapple-growing operations.
Volatile market
But DMPL reported that its continuing operations had generated net operating cash flows of $76.8 million for the three months ended July 2025. It vowed to remain vigilant in managing its costs and protecting its margins amid a volatile macroeconomic and geopolitical environment.
In addition, it said lowering inventory and optimizing capital would remain a significant focus.
“Improving profits and free cash flow will continue to be a major priority for the group in the upcoming years,” DMPL said.
“Management had undertaken various measures to improve operating profits such as, investments in the cannery to improve efficiency, productivity and minimize wastage, increased efficiency in distribution centers and the implementation of certain price increases that would counter/offset the impact of inflation across all market segments,” it noted.
DMPL also continues to receive dividends from its subsidiaries and expects these to continue over the next 12 months.
The company said its Philippine unit, along with Asian and international businesses, continued to “perform well with resilient consumer demand, supported by a strong and stable supply chain.”
