Del Monte Pacific (D03) Q1 2026 earnings summary

Executive summary

• Sales reached $203.7 million, up 13% year-over-year, driven by strong growth in the Philippines and international markets.

• Net profit rose to $5.5 million from $0.4 million, reflecting improved sales and margins after deconsolidating the U.S. business effective May 1, 2025.

• U.S. business was deconsolidated effective May 1, 2025, reducing liabilities by $1.5 billion and resulting in a full impairment of $703.5 million in U.S. assets.

• Focus remains on Asian operations, with resilient demand and a stable supply chain supporting performance.

Financial highlights

• Turnover grew 12.9% year-over-year to $203.7 million, with gross profit up 32.8% to $66.1 million and gross margin rising to 32.5%.

• EBITDA improved by 10.7% to $37.3 million; operating profit up 38.5% to $35.9 million.

• Net margin increased to 2.7% from 0.2% year-over-year.

• Net debt reduced by 5% to $1.02 billion, with net debt-to-EBITDA improving to 7.1x from 9.7x.

• Cash flow from operations rose significantly to $76.8 million.

Outlook and guidance

• Profitability is expected to be sustained for FY2026, driven by the Philippine subsidiary, with no contingent liabilities from the U.S. business.

• Margin improvements are anticipated to continue, supported by stable revenue and cost trends.

• Focus remains on growing Asian operations, launching new products, and reinforcing market leadership in core categories.

• Key priorities include productivity improvements, cost management, and raising equity to reduce leverage.