Del Monte Pacific Ltd. (DMPL) plans to sell off additional assets following recent divestments in the United States and India, forming part of a broader restructuring strategy to address a significant capital deficit and stabilize its financial standing.
In its first-quarter financial report for the fiscal year ending April 2027, the dual-listed canned food giant stated it aims to manage its debt liabilities and rebuild its balance sheet through a combination of operational adjustments, debt restructuring, asset sales, and investor backing.
DMPL noted that its recovery strategy relies on a comprehensive approach rather than a single funding measure. The group has engaged external financial advisers to establish a comprehensive restructuring plan while conducting negotiations with primary creditors to relieve short-term liquidity demands, fortify its core subsidiary Del Monte Philippines Inc. (DMPI), and secure a sustainable long-term debt structure.
Impairments linked to its former U.S. operations severely impacted equity at the holding company level, leaving DMPL with a negative equity of $579 million alongside total liabilities of $1.2 billion.
Management noted that while DMPI remains profitable and cash-generative, its earnings alone cannot satisfy the parent company’s total financial obligations.
Despite structural capital pressures, DMPL reported a first-quarter net income of $16.1 million, up from $5.5 million during the same period last year. The profit growth was driven by higher revenue, improved gross margins, increased operating income, and reduced financing costs.
Group revenue for the quarter rose 9% to $222.1 million, bolstered by a 21.4% surge in international sales to $118 million. Global demand drove a 20.3% increase in premium fresh pineapple shipments and a 23.3% rise in packaged pineapple exports.
Domestic performance experienced foreign exchange headwinds. Philippine sales reached $82.6 million—reflecting a 2.2% gain in local currency terms, but a 6.9% decline in U.S. dollar terms due to peso depreciation.
Although price increases helped stabilize domestic revenue, consumer demand across key food and beverage segments slowed under high inflation and broader market caution linked to Middle Eastern geopolitical conflicts.
DMPL management confirmed that internal stress tests show the group can absorb moderate market volatility, though it remains cautious regarding potential risks from global geopolitical tensions and adverse weather events like El Niño.
The company expects to sustain operating profitability throughout fiscal year 2027.