Del Monte Pacific submits financial restructuring plan (original) (raw)

DEL Monte Pacific Ltd. (DMPL) on Tuesday said its Philippine operations remained profitable despite ongoing financial recovery efforts following the collapse of a former United States subsidiary.

The Singapore- and Philippine-listed food and beverage firm submitted a capital and financial recovery plan to the Philippine Stock Exchange (PSE), where it emphasized that its principal operating unit, Del Monte Philippines Inc. (DMPI), continued to generate profit and cash flow even as the parent company was taking all efforts to restore its balance sheet.

“DMPI is not in financial distress. It continues to operate profitably with strong revenue growth, expanding margins, and robust operating cash generation,” Del Monte Pacific said.

It added that it was pursuing a comprehensive restructuring framework covering around $1.2 billion in debt across different levels of the group to address balance sheet challenges and refinance liabilities.

The plan includes refinancing credit facilities at DMPI, restructuring holding company debt, resolving hybrid financial instruments and exploring capital-raising and asset-disposal initiatives.

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Del Monte Pacific said it expected to finalize its restructuring framework by July, negotiate with lenders and stakeholders from August to November and complete refinancing efforts by 2027.

The company said its financial difficulties arose mainly from the bankruptcy of Del Monte Foods Holdings Ltd., which filed for Chapter 11 protection in July 2025 after prolonged financial and operational challenges.

Del Monte Pacific said the Chapter 11 proceedings involving the former US subsidiary were not expected to disrupt Del Monte Philippines’ operations, supply chains, or customer relationships.

The company said it recognized a full impairment of approximately $703.5 million related to its investment in and receivables from the US business, resulting in a capital deficit at the holding company level.

Del Monte Pacific said that the setback was structural and linked to the US operations, rather than the underlying performance of the Philippine business.

Del Monte Philippines was said to remain profitable, supported by strong domestic demand, improved pineapple plantation productivity, and disciplined cost management.

In the first nine months of the fiscal year ended January 2026, the Philippine unit posted sales of 657.9million,up13percentyearonyearinpesoterms,whilenetprofitclimbed41percentto657.9 million, up 13 percent year on year in peso terms, while net profit climbed 41 percent to 657.9million,up13percentyearonyearinpesoterms,whilenetprofitclimbed41percentto85.9 million.

The company added that it remained committed to complying with disclosure requirements of both the PSE and the Singapore Exchange throughout the restructuring period.

Del Monte Pacific shares dropped P0.03, or 0.63 percent, to close at P4.70 each on Tuesday.