Campos-led Del Monte Pacific Limited is planning to raise funds via the selective sale of assets in the U.S. and injection of equity in the Group through strategic partnerships to lower leverage.
However, the firm said in a disclosure to the Philippine Stock Exchange that the Group expects to incur a net loss in this fiscal year ending in April 2025 although at a reduced amount compared to fiscal year 2024 due to losses of its US unit and increased interest expense.
“First quarter margins have increased against the fourth quarter, resulting in lower first quarter losses than the fourth quarter,” DMPL’s COO Luis Alejandro said.
He noted that, “We are executing the priorities we have set to improve our operating and financial performance across all businesses. 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 fiscal year 2026, with DMPI leading the way as it bounces back in fiscal year 2025.”
DMPL’s net loss jumped 161 percent to $34.2 million in the first quarter of fiscal year 2025 (May to July, 2024) from the net loss of $13.1 million in the same period last year, largely driven by unfavorable results from US subsidiary Del Monte Foods Inc. and increased interest expenses.
However, on a quarter-on-quarter comparison, the net loss was reduced by more than half versus fourth quarter fiscal year 2024 loss of $78.6 million as Del Monte Philippines, Inc. (DMPI) increased its net profit by 52 percent against last year, with its turnaround program firmly on track.
DMPL generated sales of $536.9 million, up four percent on robust exports of packaged and fresh pineapple as well as higher sales in the Philippines. DMFI generated sales of $356.6 million or 66 percent of Group turnover.
DMFI’s sales were stable as strong bubble tea sales from expanded nationwide distribution and growth in broth and stock portfolio were offset by a slowdown in healthy snacking category sales.
The Philippine market delivered sales of $77.2 million, two percent and six percent higher in US dollar and peso terms, respectively, as all key categories of packaged fruit, beverage and culinary performed better against targets and prior year quarter.
DMPI has seen resurgence under the new sales leadership, increased modern trade shopper demand, improving general trade/distributor operations, and reinvestments in marketing which shored up brand offtake against rising food costs.
E-commerce sales more than doubled through ads optimization, strengthened distributor operations and new media forms of live selling and short videos.
Beverage is showing recovery with back-to-back programs across brands while the culinary segment grew led by Pasta and Spaghetti sauce driven by occasion advertising. Mixed fruits rose double digit amid regional religious and local government celebrations.
Total company market share grew four percentage points to 80.3 percent.
Sales in the international markets grew by 20 percent in peso terms driven by improved performance across all product categories - processed, fresh, frozen and juice.
Processed exports to EMEA and Asia were higher, while increased fresh sales were led by higher volume in China, South Korea and Japan, as well as favorable mix.