The troubled subsidiary, Del Monte Foods Holdings Ltd. (DMFHL), was written off for $703.4 million, which is about P2.6 billion lower than the $748 million (P42.65 billion) exposure the Campos-led group warned of in early July.
However, its external auditor warned it could not confirm if the losses fully captured the damage while US bankruptcy proceedings remain underway.
Red flag
Ernst & Young, through local affiliate SGV & Co., issued a rare disclaimer of opinion in the company’s latest annual report.
In accounting terms, this is essentially a red flag telling investors they cannot fully trust the numbers.
“[W]e have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements,” domestic accounting giant SGV noted in the report.
The late submission of the report also prompted the Philippine Stock Exchange to suspend trading of DMPL shares (DELM) on Sept. 16 this year.
This marks another high-profile instance of auditors pushing back on management’s numbers, after Punongbayan & Araullo rejected a more than P1-trillion land revaluation estimate for tycoon Manuel Villar Jr.’s Villar Land assets.
What happened before?
Del Monte Pacific, best known for its packaged fruits, vegetables, tomato sauces, and condiments, is led by tycoon Joselito Campos, who belongs to one of the country’s richest clans.
However, heavy debts, fierce competition from store brands, and tough economic conditions eroded its appeal in the US, leading to its Chapter 11 proceedings that was the largest since PAL entered and successfully exited bankruptcy during the COVID-19 pandemic.
DMPL deconsolidated its US arm on May 1, 2025, removing the bankrupt unit from its books after losing control of the business to creditors.
This closes a troubled chapter for the group, which paid $1.68 billion in 2014 to acquire the century-old US food giant Del Monte Foods.
Full-year results
The US write-off was the biggest factor behind Del Monte Pacific’s steep net loss of $844 million for the year ended April 30, 2025, a 539 percent drop from the $132 million loss a year earlier.
The financial report showed revenue up 11 percent to $789 million and operating profit more than doubling to $147 million.
Finance costs amounted to $79.9 million versus $78.2 million in 2024, underscoring how debt expenses continue to weigh on the bottom line.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
