Del Monte Pacific’s Q4 net profit sinks 76.9%

[SINGAPORE] Canned-food brand Del Monte Pacific on Thursday (Jun 25) reported a 76.9 per cent decrease in net profit to US$10.1 million in the fourth quarter ended Apr 30, 2026, from US$43.7 million the previous quarter. 

The results reflected a massive US$703.5 million impairment recognised in FY2025, which was tied to its US unit, Del Monte Food Holdings, that filed for Chapter 11 bankruptcy in June 2025. The impairment followed continued losses at its operating unit in FY2024 and FY2025, alongside adverse macroeconomic conditions in the US, Del Monte Pacific said in a bourse filing on Thursday (Jun 25). 

The group has since deconsolidated the US subsidiary, reducing its consolidated liabilities by around US$1.5 billion.

Additionally, Del Monte Pacific pointed to a US$40.8 million gain from an India share swap transaction in the previous year. 

Excluding these, net profit rose 3.5 times to US$10.1 million in Q4, from US$2.9 million in the prior quarter.

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. 

For the year, net profit was down a slight 0.9 per cent to US$48.4 million. Sales increased 13.5 per cent to US$896.1 million. 

Despite FY2026’s stronger profitability, 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 of US$587 million and net debt to equity ratio of -1.7 times as at Apr 30, 2026. 

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

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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.