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Richmond Mercurio - The Philippine Star
March 15, 2025 | 12:00am
DMPL incurred a net loss of $92.2 million during the nine-month period of its fiscal year ending on April 30, 2025, higher than the $50.6 million net loss recorded in the same period the previous fiscal year.
STAR / File
MANILA, Philippines — Del Monte Pacific Ltd. (DMPL), a Singapore and Philippine-listed company, widened its losses in the first three quarters of its fiscal year 2025 primarily due to the underperformance of its US subsidiary.
DMPL incurred a net loss of $92.2 million during the nine-month period of its fiscal year ending on April 30, 2025, higher than the $50.6 million net loss recorded in the same period the previous fiscal year.
Group sales improved by three percent year-on-year to $1.9 billion, with Del Monte Philippines Inc. (DMPI) contributing $582 million.
DMPL said the 13-percent higher sales in DMPI for the period offset the two-percent decline in sales of US subsidiary, Del Monte Foods Corp. II Inc. (DMFC).
In the third quarter alone, DMPI registered an 83-percent jump in net profit to $21 million on the back of export growth, favorable sales mix and cost reduction.
DMFC, meanwhile, reported a net loss of $40.5 million due to higher operational costs, unfavorable fixed cost absorption and increased interest expenses.
DMPL expects to incur a net loss in its fiscal year 2025, but projects gradual improvement in the following years as the company 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,” DMPL Group COO and DMPI president and COO Luis Alejandro said.
For its US business, Alejandro said the group continues to address the challenges and are diligently working toward the goals it has set.
“Our steadfast focus remains on executing our strategic priorities to increase operational efficiency and deliver sustainable financial outcomes,” he said.
DMFC plans to continue expanding its newer businesses as well as the food service and e-commerce channels, while maintaining its leading market share in the Del Monte Vegetable business.
As part of the group’s strategic priorities to drive long-term growth and profitability, DMFC is reducing its US manufacturing footprint to lower costs and improve margins the coming years.
