Singapore Exchange (SGX) Mainboard and Philippine Stock Exchange dual-listed Del Monte Pacific Limited (DMPL) has reported a loss of US$22.2 million ($29.8 million) for 2QFY2025 ended October, as compared to a loss of US$8.5 million in 2QFY2024.
Earnings per share for the period fell to a loss of 1.14 US cents from a loss of 0.44 US cents in 2QFY2024.
This came on the back of higher costs in the group’s US subsidiary, Del Monte Foods, Inc. (DMFI), coupled with increased interest expense.
However, the group generated sales of US$694 million, up 4% y-o-y. This was due to an “impressive” growth for fresh and packaged pineapple exports as well as higher sales in the Philippines, says DMPL.
Net profit for Del Monte Philippines surged 98% y-o-y to US$20.3 million for 2QFY2025. The group adds that this offset the decline in the US.
The group’s Philippine market also delivered sales of US$113.5 million, up 5% y-o-y and 6% y-o-y in US dollar and peso terms, respectively. This was due to “robust” growth in beverage and packaged fruit.
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For the 2QFY2025, DMPL’s gross profit was up 2% y-o-y to $137.5 million with gross profit margin of 20%, in line with 2QFY2024.
The group’s ebitda fell by 4.4% y-o-y to US$61.1 million in 2QFY2025.
Meanwhile, DMFI’s gross profit declined to US$78.5 million from US$94.4 million mainly due to higher costs driven by rising manufacturing costs, and higher costs due to excess inventory.
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Moving forward, the group expects to incur a net loss in FY2025, due to current conditions.
That said, the group adds that it will continue to accelerate the resurgence of domestic and international sales of Del Monte Philippines, which is expected to do better in FY2025 as compared to the previous year.
Luis Alejandro, DMPL’s chief operating officer, says: “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 adds: “Our unwavering focus remains on executing our strategic priorities to enhance operational efficiency and financial results across all subsidiaries."
Shares in Del Monte Pacific Limited closed flat at 8 cents on Dec 11.
