Singapore Exchange Mainboard and Philippine Stock Exchange dual-listed Del Monte Pacific D03 Limited (DMPL) has posted a net loss of US$127.3 million for FY2024 ended April 30, down from a net profit of US$17 million the year prior.
DMPL’s gross profit declined by 30% y-o-y to US$422.2 million on higher costs, while ebitda fell 60% y-o-y to US$133.2 million.
For the financial year, the group generated a net loss on lower operating results and US$13.3 million of one-off expenses. Its fourth quarter results also included US$11.7 million of one-off expenses at international subsidiary Del Monte Foods, Inc. (DMFI) for severance pay and higher professional fees.
That said, the group says Del Monte in the US and Philippines have each maintained its leading market position in its key categories, and DMPL sales were maintained at US$2.4 billion on stable US and Philippines sales.
For FY2025, the group’s main priorities include the “selective sale of assets and injection of equity through strategic partnerships”.
The group has also set up a task force to reduce inventory and consolidate manufacturing footprint in the US, while laying off some staff and reducing fixed costs.
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The group also plans to “further invest in the growth of fresh business in North Asia and other export markets”.
According to DMPL, the results of these initiatives “will only be fully reflected in FY2026” and the group expects to incur a lower net loss in FY2025.
DMPL’s managing director and CEO Joselito Campos Jr. says: “We are extremely disappointed with our performance in the fourth quarter mainly brought about by four inventory issues in the US. We will be relentless in improving our operating and financial performance across all businesses, particularly in the US.”
Shares in Del Monte closed 0.3 cents higher, or 35 up, at 10.3 cents on June 28.
