Despite recognizing significant losses from its struggling US division, Del Monte Pacific Limited reported a profit for its latest fiscal year after reclassifying its American operations as discontinued.

“Considering the board changes and the voluntary Chapter 11 filing of DMFHL (Del Monte Foods Holdings Limited) that includes a contemplated sale process, the DMPL Board had decided to classify the U.S. operations as discontinued operations…as of April 30, 2025,” DMPL said in a disclosure to the Philippine Stock Exchange.

Assets and liabilities, specifically associated with the discontinued business, are classified as “Non-current assets held for sale” and “Liabilities directly associated with assets held for sale” in the consolidated balance sheet at the end of fiscal year 2025.

“In view of the losses of DMFHL’s operating subsidiary DMFC (Del Monte Foods Corporation II Inc.) in FY2024 and FY2025, and continuing adverse U.S. macroeconomic conditions, the Group has recognized a full impairment of related current and long-term assets in DMFHL amounting to $703.5 million, resulting in a complete write-down of its investment and other assets in the U.S. subsidiaries,” said DMPL.

Following the complete asset impairment of $703.5 million, a net loss of $892.4 million was recorded for FY2025 for DMPL’s Discontinued Operations (defined as the U.S. business).

Deconsolidation of DMFHL reduced the Group's total liabilities by $1.5 billion as of 1 May 1, 2025.

“Going forward, DMPL will report solely on its Continuing Operations (Asia-focused business and international), enabling full strategic focus on driving growth and profitability within its resilient Asian and overseas markets.

“Barring unforeseen circumstances, the Group expects to be profitable in FY2026 from Continuing Operations, driven primarily by its subsidiary Del Monte Philippines, Inc. (DMPI).

“This marks a pivotal milestone, reflecting the strength and momentum of the Philippines and international businesses,” DMPL said.

DMPL's Continuing Operations (ex-U.S. business) demonstrated significant improvement in the fourth quarter and full year FY2025, and the firm said this lays a solid foundation for future growth.

It reported a five percent year-on-year increase in sales to $192.0 million for the quarter due to higher sales in the Philippines.

Bottom line also turned around to a net profit of $5.7 million from a net loss of $7.0 million, driven by improved sales and margins.

For FY2025, sales grew 11 percent to $789.5 million and EBITDA surged 36 percent to $140.3 million. Net profit reached $10.9 million, reversing a net loss of $24.9 million in FY2024.