Its financial report for the first quarter of its 2025 fiscal year, which covers the months of May to July 2024, showed losses ballooning to $34.2 million from $13.1 million a year ago while gross profit slumped over 19 percent to $87.6 million.
Del Monte Pacific, which is listed in the Philippines and Singapore, has lined up several programs to restore its finances, noting that challenges were amplified by debts of $2.23 billion.
In a series of filings on Wednesday, it noted that these would result in a “positive financial impact” that will be fully reflected in its 2026 full year resets.
“Under current conditions, the group anticipates a net loss in [full-year] 2025, albeit at a lower level than in [full year] 2024,” the company said.
Recovery plan
Its its disclosure, Del Monte said the main priorities include the selective sale of assets in the US and equity injection through strategic partnerships. Proceeds from these transactions will be used to lower leverage.
The weak performance of its US subsidiary, Del Monte Foods Inc. (DMFI), continues to weigh on its financial performance.
“The group is also focused on restoring gross margins, with a key priority being DMFI,” the company said.
“This involves a 30 percent reduction in inventory levels through a production cutback during the current pack season, consolidation of its manufacturing footprint by the third quarter, and reducing warehousing, distribution costs, waste, and inventory write-offs,” it added.
Management’s view
“First quarter margins have increased against the fourth quarter, resulting in lower first quarter losses than the fourth quarter. We are executing the priorities we have set to improve our operating and financial performance across all businesses,” said Luis Alejandro, the company’s chief operating officer.
“This is most evident in Del Monte Philippines where profitability has significantly increased. We are optimistic that the group’s performance will continue to improve, paring losses on track for a group turnaround in FY2026, with DMPI leading the way as it bounces back in FY2025,” he added.