Del Monte Pacific (D03) AGM 2024 Presentation summary

FY2024 performance overview

• Group revenues remained stable at US$2.43bn, but EBITDA dropped 60% to US$130.5m and net profit swung to a US$129m loss due to higher costs and one-off expenses.

• Gross margin declined to 17% from 25%, driven by inflation, operational inefficiencies, and lower pineapple supply and productivity.

• DMPI revenue fell 5.6% to Php38.7bn, with international packaged exports down 9.4% and Philippine market flat; fresh exports grew 9.2%.

• DMFI US sales were flat at US$1.74bn, but gross profit fell 39% and net loss widened to US$111m due to high inventory costs and operational challenges.

• Group inventory decreased 3% in FY2024 after a 57% spike in FY2023, reflecting improved working capital management.

Key operational challenges and responses

• DMPI faced record-low productivity in the C74 pineapple variety due to severe weather and field management lapses; a rehabilitation task force is implementing climate-resilient farming, SOP resets, and supervisor retraining.

• Philippine distributor sales fundamentals are being addressed with new leadership, increased distributors, expanded sales management, and enhanced technology support.

• DMFI struggled with inflation, excess high-cost inventory, plant inefficiencies, and increased competition from private labels.

• Cost reduction initiatives include workforce cuts, plant consolidations, procurement savings, and strategic price increases, targeting US$40m+ in annual savings.

Market position and growth initiatives

• Maintained or grew market leadership in core Philippine categories (e.g., 95% share in packaged pineapple, 80% in canned mixed fruit).

• International fresh pineapple market share improved, especially in China (68%) and North Asia (48%).

• In the US, Del Monte leads canned vegetables (25.2% share) and remains a top brand in canned fruit, fruit cups, and broth.

• New product platforms focus on global flavors, health, and value, with expanded distribution across more retail channels and e-commerce.