Del Monte Pacific 1Q FY2026 Results: 13% Sales Growth, Strong Philippine & International Performance (No Dividend Announced)

Del Monte Pacific Limited (DMPL) 1Q FY2026 Financial Results: Strong Growth After U.S. Deconsolidation

Del Monte Pacific Limited (DMPL) has reported its results for the first quarter of fiscal year 2026 (1 May – 31 July 2025), marking a new phase for the group following the deconsolidation of its U.S. business. The company’s focus now centers on its robust Philippine and international operations, which have delivered notable improvements across revenue, margins, and profitability.

Key Financial Metrics and Performance Comparison

Metric	1Q FY2026	4Q FY2025	1Q FY2025	YoY Change	QoQ Change
Revenue (US\$m)	203.7	N/A	180.4	+12.9%	N/A
Gross Profit (US\$m)	66.1	N/A	49.8	+32.8%	N/A
Gross Margin (%)	32.5	N/A	27.6	+4.9 ppts	N/A
EBITDA (US\$m)	37.3	N/A	33.7	+10.7%	N/A
Net Profit (US\$m)	5.5	N/A	0.4	NM*	N/A
Net Margin (%)	2.7	N/A	0.2	+2.5 ppts	N/A
Net Debt (US\$m)	1,020.8	N/A	1,079.6	-5.4%	N/A
Net Debt/EBITDA (x)	7.1	N/A	9.7	-2.6x	N/A
Cash Flow from Operations (US\$m)	76.8	N/A	43.5	+76.6%	N/A
Dividend	Not Disclosed	Not Disclosed	Not Disclosed	–	–

*NM: Not meaningful due to low base in 1Q FY2025.

Historical Performance Trends

DMPL’s financial performance this quarter represents a significant turnaround from the same period last year, with revenue growth of nearly 13%, gross profit up by nearly 33%, and net profit moving sharply higher after a weak 1Q FY2025. The improvement followed the exit of the loss-making U.S. business, which also led to a reduction in net debt and a marked improvement in net debt/EBITDA.

Exceptional Earnings and One-Offs

The report highlights the deconsolidation of the U.S. business from 1 May 2025, in line with IFRS 10. This move follows the previous year’s unfavorable results, including asset impairments and write-downs. Current results reflect only continuing operations in Asia and international markets, creating a cleaner baseline for future performance.

Operational Highlights

Philippines: Sales rose 10% in peso terms (+15% in USD), driven by strong demand in beverages, culinary, and packaged fruits. Strategic product innovations and health-focused campaigns reinforced market leadership across multiple product categories.
International: International sales grew 6% to US\$97.2m, supported by strong fresh pineapple demand in China and Japan. S&W Deluxe Pineapple gained traction, and the company won recognition as Supplier of the Year from Goodme in China.

Strategic Priorities & Outlook

DMPL is focused on defending and expanding its Asian operations, emphasizing market leadership in beverages, culinary products, and packaged fruit, while launching products in new segments and channels. Productivity improvements, cost management, and an equity raise to address capital deficiency after U.S. impairments are immediate priorities.

Management expects the company to remain profitable for FY2026, barring unforeseen circumstances, and sees this as a pivotal milestone reflecting the strength of its core operations.

Sustainability and Recognition

The group continues to prioritize sustainability, with notable progress in solar power generation and water use efficiency. DMPI received a top award for innovation in advancing environmental sustainability and digital transformation in agriculture.

Divestments, Fundraising, and Capital Structure

DMPL has deconsolidated its U.S. business, which was a significant drag on profitability. The group’s capital structure remains a focus, with plans to raise equity to reduce leverage and offset the capital deficit resulting from past U.S. write-downs.

Events Impacting the Business

No mention is made of legal disputes, natural disasters, or significant macroeconomic events. The company highlights resilience in supply chain and stable demand in its key Asian and international markets.

Shareholder Actions

No share buybacks, unusual fund flows, or director remuneration disclosures are provided in the report.

Conclusion and Investment Recommendation

Overall Assessment: DMPL’s 1Q FY2026 results are strong, showing a decisive recovery in profitability and margins after the strategic exit from the U.S. market. The company’s focus on its competitive strengths in Asia and international markets is bearing fruit, with robust growth, improved operational efficiency, and a clear pathway to profitability. However, leverage remains elevated and management is prioritizing an equity raise to address this.

Investor Recommendations

If you currently hold DMPL shares: The improved financials, profitable outlook, and strong market positions suggest holding your shares is justified. Continue monitoring progress on the planned equity raise and deliverables on cost management and growth initiatives.
If you do not currently hold DMPL shares: The company’s turnaround is compelling, but prospective investors should await further clarity on the equity fundraising and evidence of sustained profitability before considering an entry. Watch for future quarters to confirm the durability of this recovery.

Disclaimer: This analysis is based strictly on the company’s reported information and does not constitute investment advice. Please consult your financial advisor and consider your risk tolerance before making any investment decisions.