Del Monte Pacific (D03) Q3 2025 earnings summary

Executive summary

• Group turnover for Q3 FY2025 rose 2.5% to $663 million, led by 29% growth in international fresh pineapple and packaged products sales.

• Net loss attributable to owners widened to $35.9 million in Q3, up from $29 million last year, mainly due to higher costs and increased interest expenses in the U.S. business.

• For the nine months, turnover increased 3.5% to $1.89 billion, but net loss deepened to $92.2 million from $50.6 million, primarily from DMFC's underperformance.

• Achieved $312 million group inventory reduction, improving days inventory by 42 days year-over-year.

• Completed sale and closure of Hanford Plant for $56 million, transitioning to a co-pack model to improve margins.

Financial highlights

• Q3 EBITDA rose 3.3% to $41.9 million, but nine-month EBITDA fell 13.3% to $134.9 million.

• Free cash flow of $145 million generated, reversing a $90 million outflow from the prior year.

• U.S. operations reduced inventory by $291 million, group total $312 million.

• Gross margin in DMPI improved ahead of plan, while U.S. gross margin declined from 17.6% to 13.4% due to inflation and higher distribution costs.

• Cash flow from operations for the nine months surged 128.5% to $260.9 million, driven by inventory reduction.

Outlook and guidance

• Group expects a net loss for FY2025 but projects gradual improvement in FY2026 and FY2027 as strategic initiatives take effect.

• Continued focus on inventory reduction, margin restoration, and network optimization in fiscal 2026.

• Full impact of asset-light model and margin improvements expected in fiscal 2027.

• Comprehensive cost reduction initiatives underway, including SG&A, warehousing, and operational streamlining.

• DMFC is consolidating underutilized assets and reducing U.S. manufacturing footprint.