Del Monte Pacific Ltd., the global food and beverage brand listed in the Philippines and Singapore stock exchanges, said Monday had a net loss of USD76.7 million in its fourth quarter ended 30 April, wider than the net loss of USD11.9 million in the same period last year.
It said gross profit decreased by 48 percent to USD61.8 million with a gross margin halved to 10 percent. This decline was mainly due to inventory-related waste, variable costs, and distribution expenses at DMFI.
It said sales in its fourth quarter ended 30 April saw a 2 percent growth to USD597.3 million, driven by strong S&W fresh and packaged pineapple sales in Asia that offset lower sales in the US from its subsidiary Del Monte Foods Inc.
DMFI contributed USD420.0 million in sales, representing 70 percent of Del Monte’s turnover, despite a 2 percent decrease. This decline was attributed to a strategic shift away from lower-margin co-pack products and a decrease in packaged fruit sales. This development was partially offset by growth in the sales of products like Joyba bubble tea, Kitchen Basics, and College Inn broth and stock.
In the Philippines, sales reached USD68.8 million, up 3 percent in peso terms but flat in US dollar terms. This growth was driven by higher sales of packaged fruit and beverages due to new campaigns and promotional activities, including the launch of Del Monte Fruity Zing, a competitively-priced dual flavor juice aimed at Gen Z consumers.
International markets saw a 9 percent increase in sales, fueled by a 33 percent growth in the fresh segment. This growth was driven by increased volumes to South Korea and China, boosted by higher-margin products like S&W Deluxe pineapple. However, packaged sales declined primarily in the USA due to inventory adjustments at DMFI, despite higher sales of packaged pineapple in South Korea.
For the full year, Del Monte maintained sales at USD2.4 billion, but gross profit dropped 30 percent to USD422.2 million due to higher costs.
Earning before interest, taxes, depreciation and amortization fell 60 percent to USD133.2 million, and the Group incurred a net loss of USD127.3 million, including one-off expenses of USD13.3 million.
Looking ahead, Del Monte said its priorities include restoring gross margins, particularly in the US market, by reducing inventory, minimizing waste, optimizing warehousing and distribution, and enhancing manufacturing efficiency.
The Group plans to invest further in its fresh business in North Asia and other export markets, aiming for full realization of these initiatives by the fiscal year end April 30, 2026 and expecting a net loss in the current fiscal year ending April 30, 2025.
“We are extremely disappointed with our performance in the fourth quarter mainly brought about by 4 inventory issues in the U.S. We will be relentless in improving our operating and financial performance across all businesses, particularly in the U.S.,” said Del Monte managing director and chief executive officer Joselito Campos Jr.
