Del Monte (DMC) Q1 2026 earnings summary

Executive summary

• Closed the Del Monte Foods acquisition, reuniting the brand under one owner for the first time in nearly 40 years, with initial contribution in Q1 and a focus on long-term value creation and integration.

• Operating segments were realigned, establishing Prepared Foods as a distinct segment following the acquisition.

• The operating environment is challenged by geopolitical conflict in the Middle East, driving up costs across energy, fertilizers, packaging, and transportation.

• Q1 2026 results reflect disciplined execution and resilience amid a complex environment, with portfolio expansion and initial Del Monte Foods contribution.

Financial highlights

• Net sales were $1,044.1 million, down 4.9% year-over-year, mainly due to the Mann Packing divestiture and lower avocado sales, partially offset by Del Monte Foods acquisition and favorable FX.

• Gross profit was $89.0 million; adjusted gross profit was $91.0 million, with gross margin at 8.5% and adjusted gross margin at 8.7%.

• Operating income was $20.1 million; adjusted operating income was $40.2 million.

• Net income attributable to shareholders was $10.0 million; adjusted net income was $29.9 million. EPS was $0.21; adjusted EPS was $0.63.

• Adjusted EBITDA was $58.4 million, with a 5.6% margin.

Outlook and guidance

• Net sales expected to increase 13%-15% year-over-year in 2026, with $600 million contribution from Del Monte Foods.

• Cost pressures from energy, shipping, and commodities estimated at $40-$45 million, impacting Q2 onward.

• Additional $20-$25 million in headwinds expected, half from FX impacts, half from higher US logistics costs.

• Gross margin guidance: Fresh and Value-Added Products 11%-12%, Bananas 3%-4%, Prepared Foods 13%-14%, Other Products and Services 12%-13%.

• SG&A expected at $270-$280 million; capital expenditures at $85-$95 million; operating cash flow at $40-$50 million.