Del Monte Pacific Ltd. (DMPL) has shifted its focus toward its Asian operations after divesting its loss-making United States business. In a disclosure to the Philippine Stock Exchange on March 12, the company stated that "the company can now concentrate fully on driving growth within its profitable core business."
DMPL said its subsidiary, Del Monte Philippines Inc., continues to record stable performance supported by consumer demand and supply chain operations. The group's priorities include reinforcing market leadership in the Philippines in beverage, culinary, and packaged fruit categories. The company also plans to introduce products in new segments and expand distribution through convenience stores, away-from-home channels, drugstores, and schools.
© Del Monte
In international markets, the company aims to maintain market leadership in fresh pineapples across North Asia. It also plans to increase the productivity of C74 pineapple, a variety used in packaged pineapple products, by more than 15 per cent compared with fiscal year 2025. Inventory levels are expected to remain below 70 days.
DMPL said it will also prioritize raising equity to reduce leverage and capital deficits linked to the impairment recorded in 2025 related to investments and assets in its U.S. operations. The group also plans to divest its remaining stake in Sundrop Brands Ltd. in India as part of efforts to optimize capital allocation.
For the first nine months of its fiscal year ending June 2026, DMPL reported net profit of US$32.3 million, compared with US$5.2 million in the same period a year earlier. Sales increased 14.2 per cent to US$682.4 million from US$597.5 million.
The growth was driven by higher exports of fresh and packaged pineapple products and higher sales in the Philippines. The results also reflected higher gross margins supported by increased volumes, product mix, and pricing adjustments in line with inflation. Lower interest costs contributed to the results, while unrealized foreign exchange losses related to a weaker Philippine peso partially offset the gains.
Sales in the Philippine market reached US$322.7 million, representing growth of 8.3 per cent in peso terms and 8.4 per cent in U.S. dollar terms. The increase was supported by demand across general trade, modern trade, and food service channels, particularly for packaged fruit and beverage products.
International sales increased 15.2 per cent to US$298.6 million, supported by demand for fresh pineapples in China, Japan, and the Middle East. In Japan, fresh pineapple sales increased 19 per cent, linked to demand for fresh-cut pineapple and the introduction of S&W Deluxe pineapple to a new customer.
Gross margin reached 33.2 per cent compared with 27.9 per cent in the same period a year earlier. The increase was linked to pricing actions, export volumes, and a higher share of S&W Deluxe fresh pineapple exports.
Source: Manila Bulletin
