Del Monte Pacific reports net profit of US$5.7 mil for fourth quarter, after deconsolidating US operations from May 1

FY2025 net loss of US$834.4m million includes a full impairment of US$703.5 million from its failed subsidiary

 

[SINGAPORE] Del Monte Pacific : D03 -4.3%, which is dual-listed on the Singapore Exchange and Philippine Stock Exchange, on Thursday (Jul 31) unveiled a net loss of US$742.2 million for its fourth quarter ended Apr 30, 2025, bringing its full-year net loss for FY2025 to US$834.4 million.

 

This came on the back of US$787.8 million in losses booked from the group&rsquo s discontinued operations, including a &ldquo full impairment of related current and long-term assets&rdquo 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 that it expected to post a capital deficit on its balance sheet due to the write-downs linked to the US unit&rsquo 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 &ldquo does not believe it has liability&hellip with respect to (their) financial obligations arising out of its voluntary Chapter 11 filing or otherwise&rdquo .

 

No dividend was declared for FY2025, as was the case a year earlier &ldquo due to the net loss position&rdquo , the group said.

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 5.4 per cent year-on-year increase in sales to US$191.9 million for the quarter, supported by higher sales in the Philippines. 

 

Del Monte Foods says in its statement that the restructuring support agreement contemplates the company undertaking a going-concern sale process for all or substantially all of its assets.

Del Monte Foods files for bankruptcy SGX-listed parent has over US$700 million exposure to US unit 

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&rsquo s 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&rsquo 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 that 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 that this will &ldquo sharpen its strategic efforts on growing its resilient markets outside the US&rdquo .

 

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

 

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