Del Monte losses balloon by 82% on US costs
MANILA, Philippines — Losses at canned food maker Del Monte Pacific Ltd. ballooned by 82 percent to $92.24 million during the first nine months of its fiscal year covering May 2024 to January 2025, as higher costs at its US subsidiary offset gains in the Philippines.
In a stock exchange filing on Thursday, Del Monte said its sales inched up by 3 percent to $1.9 billion thanks to double-digit growth at Del Monte Philippines Inc. (DMPI).
Sales at DMPI reached $582 million, up by 13 percent, driven by growth in both the domestic and international markets.
READ: Del Monte H1 losses ballooned to $56.3M
As for US subsidiary Del Monte Foods Corp. II Inc. (DMFC), sales were flat at $461.3 million on the back of low retail volume and unfavorable sales mix.
DMFC’s gross profit also dipped by 20 percent to $58.2 million due to “unfavorable fixed cost absorption, increased warehousing and transfer freight costs.”
“Del Monte Philippines is experiencing good momentum, a testament to our team’s unwavering commitment to consumer engagement and cost optimization,” Del Monte chief operating officer Luis Alejandro said in a statement.
Alejandro, who is also DMPI’s president and COO, added that they were addressing challenges at DMFC.
