Del Monte Pacific Ltd. reported a near-tripling of first-quarter fiscal 2027 net profit, lifted by strong demand in its international pineapple business that offset a decline in its home market.
Net profit for the quarter ended July 31 rose to US$16.1 million from US$5.5 million a year earlier, while total sales climbed 9% to US$222.1 million. International market revenue jumped 21% to US$118 million, driven largely by fresh and packaged pineapple exports. Sales in the Philippines fell 7% in dollar terms to US$82.6 million, though they gained 2% in local currency.
The profit expansion was accompanied by margin improvement. Gross profit reached US$74.7 million, up 13%, and gross margin expanded 120 basis points to 33.7%. EBITDA rose 25.7% to US$49.3 million. Net profit margin widened to 7.3% from 2.7% in the prior-year period.
Operating cash flow dropped 25% to US$57.6 million from US$76.8 million. The company continues to carry a substantial balance-sheet burden following a US$703 million write-down on its U.S. operations at the end of fiscal 2025. As of July 31, negative equity stood at US$579 million, resulting in a negative net debt-to-equity ratio of 1.7x. Net debt declined 5% to US$969.7 million, and the net debt-to-EBITDA ratio improved to 5.1x from 6.9x.
In the Philippines, Del Monte retained dominant positions in several categories. Tomato sauce market share held at 83.8%, while spaghetti sauce share remained at 42.6%. Ready-to-drink juice share, excluding foil pouches, fell 3.6 percentage points to 38.8%.
Internationally, S&W brand fresh pineapple sales grew 20%, and packaged pineapple exports advanced 23%. In North Asia, S&W captured 54% of imported fresh pineapple volume, with particularly strong penetration in China at 74% by mid-2026, Korea at 43%, and Japan at 24%.
The company highlighted sustainability savings of 39.3 million Philippine pesos from solar power systems in fiscal 2026 and noted improved water efficiency, using 11.50 liters per kilogram of products manufactured. Its "100 Years of Nourishing Goodness" centennial campaign won four trophies at the 20th Asia Pacific Tambuli Awards.
Foodservice and retail expansions included a partnership with McDonald’s Hong Kong featuring S&W Fiesta Fruit Cocktail and Pineapple Slices across more than 250 outlets. A new 1.4 kg stand-up pouch of Today’s Mixed Fruits was tested, and S&W Deluxe Fresh Pineapples expanded from five to 20 S&R membership clubs within two months.
