Campos-led Del Monte Pacific Limited (DMPL) continued to report losses for the first nine months of its fiscal year ending on April 30, 2025 (FY2025) but sees a return to profitability in the coming years.

In a disclosure to the Philippine Stock Exchange, the firm said it expects to incur a net loss in FY2025 but projects gradual improvement in FY2026, continuing into FY2027 as it executes its strategic initiatives.
 

“Del Monte Philippines is experiencing good momentum, a testament to our team’s unwavering commitment to consumer engagement and cost optimization,” said DMPL Group COO and Del Monte Philippines Inc. (DMPI) President and COO Luis Alejandro.

He added that, “In our U.S. 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."

The Del Monte Group recorded an 82 percent jump in net loss to $92 million in the first nine months of FY2025 from $50.6 million in the same period last fiscal year.

This is largely attributable to US subsidiary Del Monte Food Corporation II’s (DMFC) underperformance, partially offset by DMPI’s 80 percent net profit growth to 61 million.

Group sales for the first nine months of FY2025 grew by three percent to $1.9 billion, with DMPI contributing a 13 percent increase to $582 million.

For the third quarter alone, the DMPL Group incurred a net loss of $36 million from $29 million in FY2024, primarily due to higher operational costs and increased interest expenses of DMFC which negated the strong performance of DMPI whose net profit rose 83 percent to $21.4 million for the quarter.

The Group reported a three percent year-on-year increase in sales to $663 million for the quarter, driven by DMPI which achieved a 10 percent sales growth to $199 million. 

For the nine-month period, DMPL grew sales by three percent to $1.9 billion on 13 percent higher sales in DMPI, which offset the two percent decline in DMFC. 

However, gross profit declined by five percent to $340.9 million on higher costs in DMFC. EBITDA decreased by 13 percent to $134.9 million, resulting in the Group’s net loss of $92.2 million. 

DMFC’s net loss was partly offset by DMPI’s increase in sales to $581.9 million and cost reduction, that led to an 80% net profit growth to US$60.8 million.

The Group said it remains focused on its strategic priorities to drive long-term growth and profitability, including the consolidation of underutilized assets. DMFC is reducing its U.S. manufacturing footprint to lower costs and improve margins in FY2026 and FY2027.

It will also continue to reduce surplus inventory and DMFC has achieved a 25 percent year-on-year or a $291 million reduction in inventory at the end of the third quarter, with further reductions planned over the coming quarters.

Meanwhile, the group will streamline selling, general, and administrative expenses, warehousing, distribution and operational costs through a new organizational structure and supply chain established in FY2025.

DMFC will also continue to expand its newer businesses as well as the foodservice and e-commerce channels, while maintaining its leading market share in the Del Monte Vegetable business.