Del Monte Philippines lines up measures to trim losses

MANILA, Philippines — Del Monte Pacific Ltd. (DMPL), a Singapore and Philippine listed company, has lined up various initiatives in order to trim losses after the company swung in the red in its 2024 fiscal year.

DMPL incurred a net loss of $127.3 million for its fiscal year 2024 ending April, a turnaround from a net profit of $17 million recorded in the prior year.

The net loss was attributed to lower operating results and $13.3 million of one-off expenses during the year.

Sales, however, were maintained at $2.4 billion on stable turnover in the US and the Philippines.

“We are extremely disappointed with our performance in the fourth quarter mainly brought about by inventory issues in the US. We will be relentless in improving our operating and financial performance across all businesses, particularly in the US,”  DMPL managing director and CEO Joselito Campos Jr. said.

During the fourth quarter, DMPL saw sales increase by two percent year-on-year to $597.3 million as robust S&W fresh and packaged pineapple sales in Asia offset lower sales in the US by subsidiary Del Monte Foods Inc.

For its 2025 fiscal year, DMPL said the group still expects to incur a net loss although at a reduced amount.

The group intends to pursue various initiatives but noted that the results will only be fully reflected in fiscal year 2026.

Among these initiatives are plans for the selective sale of assets and injection of equity through strategic partnerships.

It will also right-size workforce and reduce fixed costs while further investing in the growth of Fresh business in North Asia and other export markets.

DMPL said a task force has likewise been formed to restore gross margins both in the US and the rest of the group from the second half of fiscal year 2025 as it expects to still be carrying over high inflationary costs from last year during the first half.

Meanwhile, particular measures in the US will include reducing inventory, warehousing and distribution costs, consolidating manufacturing footprint, improve planning through digitization and clear organization accountability and restoring productivity for processed pineapple C74 variety in the next 12 to 24 months.