DEL Monte Pacific Ltd. (DMPL) reported stronger first-quarter earnings driven by higher sales but announced that it has started restructuring discussions with its principal creditors and other stakeholders to address its balance sheet problems.
At the group level, DMPL said sales in the first quarter of fiscal year ending March 2027 rose 9 percent to $222.1 million, resulting in net profit nearly tripling to $16.1 million from $5.5 million a year earlier.
Gross profit increased 13 percent to $74.7 million, while earnings before interest, taxes, depreciation and amortization rose 25.7 percent to $49.3 million.
The company attributed the improvement to higher sales and margins, including pricing actions to offset inflation, favorable foreign exchange and a better sales mix in its fresh produce business.
Despite the improved financial results, DMPL said restructuring was needed and would focus on near-term liquidity and maturity pressures, including possible asset sales.
The company is looking to combine debt restructuring, operational initiatives, asset monetization, shareholder support, and other capital measures to strengthen its balance sheet and cash-generating capacity.
Amid its negative equity position, DMPL acknowledged that its Philippine business remained resilient.
Del Monte Philippines Inc. (DMPI) reported sales of $82.6 million in the quarter ended July 31, up 2 percent in peso terms but down 7 percent in US dollar terms, as measured price increases helped offset weaker volumes in the company’s core segments.
“DMPI continues to perform well, with resilient consumer demand in international markets, supported by a strong and stable supply chain,” DMPL said in its first-quarter presentation.
The company attributed the softer volumes in the Philippines to economic volatility caused by the US-Iran war, while noting that its beverage business benefited from consumer demand for Del Monte Juice Drinks during the summer months.
At the group level, international markets were the main growth driver in the first quarter, with sales increasing 21 percent to $118 million. Fresh pineapple sales grew 20 percent, while exports of packaged pineapple rose 23 percent.
“However, despite the strong profitability, the Group cannot declare dividends due to its negative equity position,” DMPL said.
The company remains burdened by a negative equity position of $579 million as of July 31, stemming largely from the $703-million write-down of its US business at the end of fiscal 2025.
Despite the challenges facing the company, DMPL said it expects to remain profitable in the current fiscal year.
“The Group expects the business to maintain profitability in FY2027, although the operating environment remains challenging,” the company said, citing its underlying business, targeted operational improvements and restructuring plan as factors that should support long-term growth.
DMPL shares on Thursday dropped P0.20, or 5.41 percent, to close at P3.50 each. Nazylen Joy Mabanglo
