Del Monte Pacific (D03) Q2 2026 earnings summary

Executive summary

• Revenue grew 10% in Q2 and 11.3% in the first half, driven by strong sales in the Philippines and international markets, especially fresh pineapple exports.

• Net profit surged to $16.8M in Q2, a 631.6% increase year-over-year, and reached $22.3M for the first half, reflecting robust operating results and margin improvements.

• U.S. operations were deconsolidated effective 1 May 2025, reducing consolidated liabilities by $1.5B and resulting in a full write-down of U.S. assets.

• EBITDA rose 39.2% in Q2 to $51.5M; first half EBITDA up 26.2% to $90.7M.

• Results now reflect continuing operations, providing a clear baseline for future performance.

Financial highlights

• Q2 turnover: $234.9M (+9.9% YoY); H1 turnover: $438.6M (+11.3% YoY).

• Gross margin improved to 34.2% in Q2 from 27.6% YoY, and by 580 bps in the first half, due to higher volume, better pricing, and lower costs.

• Net debt reduced to $994.9M, with net debt/EBITDA improving to 6.1x from 8.3x.

• Cash flow from operations for H1: $162.7M, slightly lower year-over-year due to inventory buildup.

• Net margin increased to 7.2% in Q2 FY2026 from 1.1% year-over-year.

Outlook and guidance

• Gross margin is expected to remain sustainable, supported by ongoing productivity improvements and cost controls.

• Focus remains on growing Asian operations, reinforcing market leadership in the Philippines, and maintaining international market share in fresh pineapples.

• Key priorities include new product launches, channel expansion, productivity improvements, cost control, and raising equity to reduce leverage.

• Second half earnings are projected to be strong but lower than the first half, due to increased investments and macroeconomic headwinds in the Philippines.

• Profitability expected for FY2026 barring unforeseen circumstances.