Del Monte Pacific (D03) investor relations material

Executive summary

• Achieved turnover of $222.1 million, up 9% year-over-year, driven by strong international market performance, partially offset by softer Philippine market.

• Net profit surged to $16.1 million (7.3% margin), up 192.6% from $5.5 million, reflecting improved sales, margins, and lower financial costs.

• Gross margin improved by 120 basis points to 33.7% due to pricing actions, favorable FX, and sales mix.

• Results exclude the deconsolidated U.S. business, providing a clear baseline for ongoing operations.

• Strong cash flow from operations at $57.6 million despite commodity cost volatility.

Financial highlights

• EBITDA reached $49.3 million, up 25.7% year-over-year.

• Net debt reduced to $969.7 million due to loan repayments, with net debt/EBITDA improved to 5.1x from 6.9x.

• Negative equity of $579 million and net debt/equity ratio of -1.68x due to prior U.S. business write-down.

• Interest expense for the quarter was $16 million, with an average interest rate of 6.73% p.a.

• EPS increased to 0.83 US cents from 0.28 US cents, up 196.4%.

Outlook and guidance

• Focus remains on growing Asian operations, expanding product lines, and maintaining profitability in FY2027 despite a challenging environment.

• Pricing actions, productivity initiatives, and cost controls are being implemented to mitigate input cost pressures.

• Margin impact expected in the second half due to commodity headwinds and potential El Niño effects.

• Ongoing restructuring discussions with creditors to address liquidity and capital structure.

• No dividends expected while negative equity persists.