Del Monte Pacific back in the black, but remains in net capital deficit of US$589 million

[SINGAPORE] Canned-food brand Del Monte Pacific on Thursday (Jun 25) reported a Q4 net profit of US$10.1 million, a sharp reversal from the US$704.1 million loss for the previous corresponding period.

The big improvement was due mainly to the absence of a massive US$703.5 million impairment incurred in the previous corresponding period. The write-off resulted from the group’s US unit, Del Monte Food Holdings, filing for Chapter 11 bankruptcy in 2025.

The Singapore and Philippine-listed group said in a bourse filing on Thursday that it has since deconsolidated the US subsidiary, reducing its consolidated liabilities by around US$1.5 billion.

For the final quarter ended Apr 30, the group reported stronger operations across all market segments.

Excluding a US$40.8 million gain from an India share swap transaction in the previous period, net profit was US$10.1 million.

Meanwhile, overall sales rose 11.4 per cent to US$213.7 million, driven by higher international market sales and the Philippines, where turnover grew 5.9 per cent in pesos and 3.8 per cent in US dollars to US$75.1 million, reflecting a weakening currency against the greenback. 

For the year, net profit was US$48.4 million, compared with a US$796 million loss previously. Sales increased 13.5 per cent to US$896.1 million. 

Despite FY2026’s stronger earnings Del Monte Pacific said the US$703.5 million write-down of its US business at the end of FY2025 led to a negative equity. As at April 30 this year, the group’s net capital deficit stood at US$589 million, with current liabilities exceeding current assets by US$787 million.

“The group cannot declare dividends due to its negative equity position,” it said. 

SEE ALSO

Del Monte Pacific submits US$1.2 billion restructuring plan after US unit’s bankruptcy

Del Monte Pacific reaches settlement with US unit’s creditors, is not expected to recover equity interests

Separately, the group said a US bankruptcy court in February approved a settlement and sale of substantially all operating assets of the US unit’s relevant entities as part of the Chapter 11 restructuring process. This framework will address Del Monte Pacific’s debt obligations of about US$1.2 billion.  

The US court confirmed the reorganisation plan in May, but “certain minority lenders” appealed the decision. 

In June, the US court denied the appeal. A US district court also indicated that it was unlikely to grant further relief. Barring any intervention from higher courts, Del Monte Pacific said the reorganisation is expected to take effect shortly. 

It added that it does not expect to recover any value from its equity interests in the affected entities, which had already been fully impaired and deconsolidated. 

These proceedings also are not expected to materially impact previously disclosed financials.

In June, Del Monte Pacific’s indirect subsidiary completed the sale of its remaining 1.9 million shares in India’s publicly listed Sundrop Brands through a put option, generating gross proceeds of about US$14.1 million. 

This will be used to support the group’s working capital and debt obligations, the group said.

Shares of Del Monte Pacific closed flat at S$0.083 on Thursday, prior to the announcement.