The improvements reflect strong operational efficiency and market demand, says the dual-listed group

 

[SINGAPORE] Mainboard-listed Del Monte Pacific on Monday (Nov 17) reported a net profit of US$16.8 million for its second quarter of FY2026. This marked an increase of 630.4 per cent from the US$2.3 million posted a year earlier.

 

The improvements reflected strong operational efficiency and market demand, the canned food brand said in its Q2 business update, ahead of its investor presentation due for release on Dec 10. 

 

Shares of Del Monte Pacific rose to a two-month high of S$0.104 by 9.01 am on Monday, up 20.9 per cent or S$0.018 from its closing price on Nov 14. The counter last traded higher on Sep 12. 

 

It later pared some gains to end the day at S$0.10, up 16.3 per cent, with nearly 8.3 million shares traded.

 

The group, listed in Singapore and the Philippines, said total sales in Q2 grew 10 per cent year on year to US$234.9 million. This was driven by both domestic Philippines and international businesses, particularly fresh pineapple exports.

 

Its Philippines sales increased 9 per cent in peso terms and 7 per cent in US dollar terms to US$121.7 million on higher volume and better pricing. 

 

&ldquo Strong demand for packaged pineapple and the expanded year-round use of mixed fruits led the Philippine growth,&rdquo said Del Monte Pacific.

 

&ldquo Nutrition-led initiatives positioning pineapple as an everyday super fruit further strengthened consumer preference for natural, immunity-building options.&rdquo

 

Del Monte Pacific&rsquo s international sales grew 7 per cent to US$90.6 million, fuelled by &ldquo robust exports&rdquo of fresh pineapple. The group recorded increased sales volumes for fresh pineapple, NFC juice and frozen pineapple. 

 

The group noted that the fresh fruit business led the growth, with a 23 per cent expansion from continued sales, and improved sales mix and strong pricing. The NFC juice segment grew 49 per cent amid higher China and Europe sales, and sales of frozen pineapple climbed 21 per cent due to a favourable product mix and strong pricing. 

 

Del Monte Pacific&rsquo s gross margin improved by close to 700 basis points to 34.2 per cent from 27.6 per cent in the previous corresponding period, amid higher sales and lower production costs. 

 

The group also grew its North Asia market share for imported pineapples to 51 per cent, which it said has strengthened its leading position as a fresh pineapple supplier. 

 

For the first half of FY2026, Del Monte Pacific&rsquo s net profit jumped to US$22.3 million from US$2.7 million due to higher sales and strong margin expansion. 

 

For the six-month period, its sales rose by 11 per cent year on year to US$438.6 million amid a 16 per cent surge in fresh pineapple sales and 10 per cent growth from the Philippines business. 

 

Its gross margin for the half-year improved 580 basis points to 33.4 per cent, from 27.6 per cent in the year-ago period, driven by improved pricing across all segments and lower production costs from higher pineapple recovery. 

 

Philippine Stock Exchange suspension lifted

Trading of Del Monte Pacific shares on the Philippine Stock Exchange (PSE) resumed on Sep 22, the day its trading suspension was lifted after being imposed on Sep 16 due to its failure to submit its annual report by an extended deadline.  

 

The extension was required as Del Monte Pacific could not obtain sufficient appropriate audit evidence concerning its US subsidiary, Del Monte Foods (DMF), which faces bankruptcy proceedings, its independent auditor EY said. 

 

The company submitted its annual report the following day, on Sep 17, but trading in its shares remained suspended till Sep 22 due to an audit disclaimer in its audited financial statements. 

 

The disclaimer pertained to the carrying values of assets and liabilities of DMF and arose as auditors could not obtain sufficient evidence on the recoverable values of these.  

 

On Sep 18, Del Monte Pacific acknowledged that an audit disclaimer in its audited financials would normally constitute automatic grounds for suspension on the PSE, but noted that the Singapore Exchange had no similar policy. 

 

It filed a waiver request to the PSE to lift the suspension, on account of the audit disclaimer pertaining only to discontinued operations of DMF for FY2025 ended Apr 30. 

 

It added that DMF was deconsolidated from its financial accounts from May 1, and that the consolidated financial statements of its continuing operations are unaffected and remain reliable. 

 

Del Monte Pacific in July said it would deconsolidate DMF from its accounts, having lost control of the US unit, which filed for bankruptcy.