Singapore Exchange (SGX) Mainboard and Philippine Stock Exchange dual-listed Del Monte Pacific D03 Limited (DMPL) has reported a loss of US$34.2 million ($44.6 million) for 1QFY2025 ended July 31, as compared to a loss of US$13.1 million in 1QFY2024.
Earnings per share also fell to a loss of 1.76 US cents in 1QFY2025 from a loss of 0.67 US cents in the same period last year.
For the period, the group generated a net loss on unfavourable results from Del Monte Foods, Inc (DMFI) and increased interest expenses. That said, the group says that on a q-o-q comparison, the net loss was reduced by more than half as compared to a loss of US$78.6 million in 4QFY2024.
However, the group generated sales of US$536.9 million in 1QFY2025, up 4% y-o-y, on “robust” exports of packaged and fresh pineapple as well as higher sales in the Philippines.
Similarly, the group’s subsidiary in the US, DMFI, also generated sales of US$356.6 million or 66% of the group’s turnover.
According to the group, DMFI’s sales were “stable as strong Joyba bubble tea sales from expanded nationwide distribution and growth in broth and stock portfolio were offset by a slowdown in healthy snacking category sales”.
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The group’s Philippine market also delivered sales of US$77.2 million, up by 2% y-o-y and 6% y-o-y in US dollar and peso terms, respectively.
For 1QFY205, DMPL’s gross profit dropped to US$87.6 million, declining by 19% y-o-y, driven by DMFI’s high cost of inventory and inflationary impact from production in the year prior.
The group’s ebitda similarly fell by 37.5% y-o-y to US$31.9 in 1QFY2025.
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That said, the group says that its gross profit margin of 16% was “a commendable improvement” as compared to the 10% profit margin recorded in 4QFY2024, due to cost-cutting initiatives taking effect.
Moving forward, the group intends to undertake initiatives focused on the selective sale of assets in the US and the restoring of its gross margins.
Luis Alejandro, DMPL’s chief operating officer, says: “We are executing the priorities we have set to improve our operating and financial performance across all businesses.”
He adds: “We are optimistic that the group’s performance will continue to improve, paring losses on track for a Group turnaround in FY2026, with DMPI leading the way as it bounces back in FY2025.”
Shares in DMPL closed at 0.1 cents lower or down 1.12% at 8.8 cents on Sept 10.
