LISTED food and beverage producer Del Monte Pacific Ltd. (DMPL) said it anticipates financial improvement for fiscal years (FY) 2026 and 2027 as it continues cost optimization and operational efficiency measures.
“The group expects to incur a net loss in FY2025 but projects gradual improvement in FY2026, continuing into FY2027 as it executes its strategic initiatives,” DMPL said in a statement to the stock exchange on Thursday.
DMPL said this as its net loss for the third quarter (November–January) of FY2025, ending in April, widened by 24% to $35.9 million from $29 million the prior year, driven by higher costs.
“The group incurred a net loss of $35.9 million, primarily due to higher operational costs and increased interest expenses at its US subsidiary, Del Monte Foods Corp. II, Inc. (DMFC),” DMPL said.
Sales for the period rose by 3% to $663 million. The company’s domestic unit, Del Monte Philippines, Inc. (DMPI), recorded an 83% increase in net profit to $21 million as sales grew by 10% to $199 million.
Domestic sales reached $106.9 million, reflecting a 4% increase in peso terms but a 1% decline in dollar terms, driven by the beverage, packaged fruit, and culinary segments. International sales rose 29% due to stronger demand for fresh pineapple and packaged products.
“Del Monte Philippines is experiencing good momentum, a testament to our team’s unwavering commitment to consumer engagement and cost optimization,” DMPL Group Chief Operating Officer Luis F. Alejandro said.
DMFC, for its part, posted a $40.5 million loss during the period, 75% higher than the $23.1 million loss recorded the prior year, due to higher operational costs, increased interest expenses, and unfavorable fixed-cost absorption.
DMFC generated $461.3 million in sales, down 1% due to lower retail volume and an unfavorable sales mix.
“In our US business, we continue to address the challenges we face and are diligently working towards the goals we have set. Our steadfast focus remains on executing our strategic priorities to increase operational efficiency and deliver sustainable financial outcomes,” Mr. Alejandro said.
For the first nine months, DMPL’s net loss widened by 82% to $92.2 million from $50.6 million the prior year, due to the weaker performance of DMFC.
Sales rose by 3% to $1.9 billion, driven by higher exports of fresh pineapple and packaged products.
Meanwhile, DMPL said it is reducing its US manufacturing footprint to lower costs and improve margins in FY2026 and FY2027. It is also implementing a comprehensive cost-reduction program through a new organizational structure and supply chain framework established in FY2025.
The company also plans to further reduce surplus inventory in the coming quarters.
“DMFC will continue to expand its newer businesses, as well as the food service and e-commerce channels, while maintaining its leading market share in the Del Monte vegetable business,” DMPL said.
On Thursday, DMPL stocks rose by 8.31% or P0.26 to P3.39 apiece. — Revin Mikhael D. Ochave
