Del Monte Pacific hit by nearly US$800 million in losses from US unit collapse

[SINGAPORE] Del Monte Pacific, which is dual-listed on the Singapore Exchange and Philippine Stock Exchange, on Thursday (Jul 31) unveiled a net loss of US$742.1 million for its fourth quarter ended Apr 30, 2025, bringing its full-year net loss for FY2025 to US$892.4 million.

This came on the back of US$787.8 million in losses booked from the group’s discontinued operations, including a “full impairment of related current and long-term assets” totalling US$703.5 million from its failed US subsidiary, Del Monte Foods Holdings (DMF).

DMF filed for Chapter 11 restructuring in June. Del Monte Pacific on Jul 7 said it expected to post a capital deficit on its balance sheet due to the write-downs linked to the US unit’s bankruptcy.

The group in a bourse filing on Thursday noted that it has not guaranteed any loans of DMH or its subsidiaries; it added that it “does not believe it has liability… with respect to (their) financial obligations arising out of its voluntary Chapter 11 filing or otherwise”.

Excluding its discontinued operations, Del Monte Pacific reported a net profit of US$5.7 million for Q4, reversing a net loss of US$7 million a year earlier. The turnaround was driven by stronger sales and improved margins, it said.

The group also reported a 5 per cent year-on-year increase in sales to US$191.9 million for the quarter, supported by higher sales in the Philippines.

Gross margin increased to 29.7 per cent, from 25 per cent in Q4 FY2024. This was attributed to a favourable sales mix, contributions from the group’s premium S&W Deluxe pineapple product, better pricing and higher Philippine pineapple juice sales.

Earnings before interest, tax, depreciation and amortisation (Ebitda) climbed 18 per cent year on year to US$32.7 million.

For the full FY2025, Del Monte’s sales for its continuing operations rose 11 per cent year on year to US$789.5 million, and Ebitda increased 36 per cent to US$140.3 million. Net profit came in at US$10.9 million, compared with a net loss of US$24.9 million for FY2024.

Looking ahead, Del Monte Pacific said it will focus on its continuing operations, comprising its Asia-focused and international businesses, which will now form the basis for financial reporting and strategic growth. It believes this will “sharpen its strategic efforts on growing its resilient markets outside the US”.

Del Monte Pacific expects to be profitable from FY2026, “barring unforeseen circumstances and with the US business deconsolidated”, and noted that this will be driven by its Philippine subsidiary, Del Monte Philippines.

The group added that the deconsolidation reduced the group’s total liabilities by US$1.5 billion as at May 1, 2025.

Del Monte Pacific shares closed S$0.004 or 4.3 per cent lower at S$0.089 on Thursday, before the group’s announcement.