Philippines: Del Monte losses more than double

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Del Monte Pacific Ltd. (DMPL), a Singapore and Philippine-listed company, saw its losses more than double in the first quarter of fiscal year 2025 due to higher interest expenses and unfavorable results from its US subsidiary.

DMPL reported a net loss of $34.2 million from May to July 2024, 161 percent higher than the $13.1 million incurred in the same period last year.

On a quarter-on-quarter basis, however, the company's net loss was slashed by more than half compared to the fourth quarter fiscal year 2024 loss of $78.6 million.

Sales generated for the first quarter stood at $536.9 million, a four-percent improvement year-on-year as a result of robust exports of packaged and fresh pineapple coupled with higher sales in the Philippines.

The net loss of US subsidiary Del Monte Foods Inc. (DMFI) widened to $37.2 million during the period from last year's $9.3 million.

DMFI sales reached $356.6 million as slowdown in healthy snacking category sales offset strong Joyba bubble tea sales from expanded nationwide distribution and growth in broth and stock portfolio.

The Philippine market, meanwhile, delivered sales of $77.2 million as all key categories of packaged fruit, beverage and culinary performed better.

DMPL said Del Monte Philippines Inc. (DMPI) has seen a resurgence under the new sales leadership, increased modern trade shopper demand, improving general trade/distributor operations and reinvestments in marketing, which shored up brand off-take against rising food costs.

'First quarter margins have increased against the fourth quarter, resulting in lower first quarter losses than the fourth quarter. 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,' DMPL COO Luis Alejandro said.

DMPL said plans are underway for the selective sale of assets in the US and injection of equity in the group through strategic partnerships.

The proceeds from the transactions are intended to be utilized to lower leverage.

The group intends to continue accelerating the resurgence of domestic and international sales of DMPI, which is expected to do better this fiscal year versus prior year.

Under current conditions, DMPL said it expects to incur a net loss in fiscal year 2025 although at a reduced amount compared to fiscal year 2024.