Del Monte Pacific Ltd. (DMPL) returned to stronger profitability in the fourth quarter ended April 30, 2026, as higher exports, firmer pricing and improved margins lifted earnings despite lingering inflationary pressures.
The performance signals that the food and beverage maker’s core Asian operations continue to gain traction following last year’s massive write-down of its discontinued US business, although its weakened balance sheet remains a key overhang for investors.
Quarterly sales rose 11 percent to USD213.7 million from USD191.9 million a year earlier, driven by a 17-percent increase in international revenues as demand for fresh and packaged pineapple products strengthened. Fresh pineapple sales climbed 18 percent, buoyed by higher shipments of the premium S&W Deluxe Pineapple.
The Philippine business also delivered steady growth, with sales rising 5.9 percent in peso terms on stronger demand for beverages, culinary products, dairy and snacks, supported by price increases and new product launches.
Improved pricing and a richer product mix lifted gross margin to 33 percent from 30 percent a year earlier despite higher logistics costs. EBITDA surged 43 percent to USD47.6 million, while comparable operating profit climbed 74 percent after excluding a one-off gain from an India share swap recorded in the prior-year quarter. Net profit reached USD10.1 million, more than triple the comparable USD2.9 million earned a year earlier.
The results reinforce management’s strategy of pivoting toward higher-margin fresh exports and branded consumer products in Asia, particularly as demand from China, Japan and other international markets remains resilient.
However, the company’s financial position remains a key investor concern. DMPL ended the fiscal year with a net capital deficit of USD589.9 million and negative shareholders’ equity following the impairment of its discontinued US operations. Although management has continued to pare debt and monetize non-core assets to improve liquidity, restoring its capital structure remains critical to sustaining the group’s earnings recovery and strengthening investor confidence.
