Del Monte Pacific Ltd. reported a wider net loss of USD22.2 million for the quarter ended October, up from last year’s USD8.5 million. The bulk of the loss was attributed to its U.S. unit, Del Monte Foods Inc., which reported a USD27 million net loss, a sharp increase from the USD3.5 million loss in the same period last year. The U.S. division, which accounts for 69 percent of revenue, has faced operational challenges.
Meanwhile, Del Monte Philippines Inc., which represents about 15 percent of revenue, posted strong results, nearly doubling its net profit to USD20.3 million. This growth is seen as a positive sign, as the company anticipates continued improvement in fiscal 2025.
For the first half of its fiscal year, the company’s net loss increased to USD56.3 million from USD21.6 million in the prior year. Despite these challenges, Del Monte is optimistic about a recovery in 2026-2027, with plans to address issues in the U.S. operations.
Luis Alejandro, the company’s COO, acknowledged the struggles in the U.S. but highlighted the success of Del Monte Philippines. “We are encouraged by the robust performance of Del Monte Philippines, which reflects our effective strategies and market engagement. However, we acknowledge the challenges faced by our U.S. business and are committed to addressing these issues,” he said.
To stabilize its financial performance, Del Monte started the selective sale of U.S. assets and capital-raising efforts, aiming to reduce debt and streamline operations. Additionally, the company is working to cut inventory by 30 percent through reduced production and expects to benefit from a more efficient manufacturing footprint by the second half of the fiscal year.
Despite the challenges, Del Monte is pushing forward with new business initiatives, including its Joyba Boba Tea and Kitchen Basics Stock brands, along with growth strategies in e-commerce and foodservice channels
