Food and beverage giant Del Monte Pacific Ltd. (DMPL) saw its net loss widen by 161 percent in the first quarter of its 2025 fiscal year as its American business remained weak, seeing efforts to plug the bleeding expected to pay off by the next year.
Campos-led Del Monte, which is listed in both the Philippine and Singapore bourses, on Wednesday reported a $34.2-million net loss in the quarter ending in July 31. This dropped from $13.1 million in the same period last year.
This was attributed largely to “unfavorable results” from California-headquartered Del Monte Pacific Foods Inc. (DMFI), which experienced a slowdown of sales in the healthy snacking category.
READ: Del Monte expects to bite the bullet through 2025
This offset higher sales in Joyba bubble tea, resulting in a flat top line for the US subsidiary at $356.5 million. This represented two-thirds of group-wide turnover.
According to the parent firm, it will reduce inventory levels at the US business by 30 percent to help cut losses. It will likewise reduce warehousing and distribution costs and consolidate its manufacturing plants.
Higher sales in the Philippines and exports of packaged and fresh pineapple caused a modest 4-percent growth in Del Monte’s overall sales to $536.9 million, the firm said in a regulatory filing.
Sales under Del Monte Philippines Inc. inched up by 2 percent to $77.2 million due to the stronger performance of packaged fruit, beverage and culinary categories.
Local e-commerce sales “more than doubled,” according to Del Monte, although it did not provide exact figures.
According to Del Monte, the Philippine market improved due to increased shopper demand and the company’s added investments in marketing.
READ: Del Monte’s US units cutting two plants
Despite the group’s overall performance, Del Monte Philippines Inc. booked a 52-percent surge in net profit to $17.3 million on improved shopper demand and added marketing investments.
Other international markets booked 20-percent higher sales, according to Del Monte, as all product categories improved.
Processed exports to Europe, Middle East, Africa and Asia were higher, while sales of fresh products increased in China, South Korea and Japan.
“We are executing priorities we have set to improve our operating and financial performance across all businesses,” DMPL chief operating officer Luis Alejandro said in a statement.
“This is most evident in Del Monte Philippines, where profitability has significantly increased,” Alejandro added.
Although efforts to swing back to a net income are already in the works, the COO clarified that its losses would only turn around by the 2026 fiscal year, which starts on May 1, 2025. INQ