This is primarily due to higher operational costs and increased interest expenses at its US subsidiary, which negated the strong performance of its Philippines unit, says group
[SINGAPORE] Canned-food brand Del Monte Pacific reported a net loss of US$35.9 million for the quarter ended Jan 31, as its losses widened from US$29 million in the corresponding period in the previous year.
The net loss was primarily due to higher operational costs and increased interest expenses at its US subsidiary Del Monte Foods Corp (DMFC), which negated the strong performance of its Philippines subsidiary Del Monte Philippines, said the group in a bourse filing on Wednesday (Mar 12).
Revenue for its third quarter stood at US$663 million, a 2.5 per cent increase from the year before.
The group said that it remains focused on its strategic priorities to drive long-term growth and profitability, which would include the consolidation of underutilised assets, reduction of surplus inventory and lowering of comprehensive costs.
DMFC is reducing its manufacturing footprint in the United States to decrease costs and improve margins in the 2026 and 2027 financial years, added the group.
DMFC will continue to expand its newer businesses as well as the food service and e-commerce channels, while maintaining its leading market share in Del Monte’s vegetable business.
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The group noted that Del Monte Philippines is experiencing good momentum, adding that this is a testament to the group’s commitment to consumer engagement and cost optimisation.
For Q3, Del Monte reported a loss per share of 1.85 US cents, compared with a loss per share of 1.49 US cents in the same period in the prior year.
No dividends were declared for this quarter, unchanged from before.
Shares of Del Monte closed up 1.4 per cent or S$0.001 at S$0.075 on Wednesday before the announcement.
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