Latest news with #DelMontePacific
Straits Times
09-07-2025
- Business
- Straits Times
Del Monte Pacific says business in Singapore not affected by US unit's bankruptcy filing
Sign up now: Get ST's newsletters delivered to your inbox Del Monte Asia, which is not affiliated with the Del Monte Pacific group, holds the trademarks for the Asia-Pacific region, including Singapore. SINGAPORE - The sale of Del Monte-branded products here will remain unaffected despite a bankruptcy filing by its US unit, according to its Singapore-listed parent company Del Monte Pacific. Saddled with US$1.2 billion (S$1.5 billion) in secured debt, Del Monte Foods filed for Chapter 11 bankruptcy protection on July 1 to support a planned sale of the business and restructuring of its finances. The company has secured US$912.5 million (S$1.17 billion) in emergency funding to maintain operations during the process. Certain companies of the Del Monte Pacific group have the exclusive rights to use the Del Monte trademark in the United States, South America, the Philippines, Indian subcontinent and Myanmar. Subsidiary Del Monte Foods sells processed food products such as canned fruits, vegetables and juices mainly in the US. But Del Monte also licenses its Del Monte trademarks to unaffiliated companies, as is the case with Singapore. Del Monte Asia, wholly-owned by Japan's Kikkoman Group, distributes processed food products under the Del Monte brand in the Asia-Pacific region - including Singapore but excluding the Philippines. Del Monte Asia distributes a wide range of Del Monte-branded products in Singapore - canned foods like sardines, sweet corn, tomatoes and pineapple, as well as dried fruits, juices and ketchups. It also runs its own factories in Asia. As a result, disruptions to sales here are unlikely. Top stories Swipe. Select. Stay informed. Singapore Singapore to hire 1,000 new educators annually in the next few years, up from 700 Singapore COE prices rise for all categories Business Temasek reports $45 billion rise in net portfolio value to $434 billion Business Singapore finance employers pledge 300 places for trainees and interns from polytechnics Singapore $43k fine for undischarged bankrupt doctor who failed to disclose assets worth over $4m Singapore Female primary school teacher allegedly committed sex acts with underage male student Singapore Goodbye fraudsters? Dating app Coffee Meets Bagel rolls out identity verification Singapore Pritam's appeal against conviction, sentence over lying to Parliament set for Nov 4 Singapore shareholders of Del Monte Pacific though will be affected by Del Monte Food's bankruptcy filing as its restructuring will result in a deconsolidation of the subsidiary from its parent. Del Monte Pacific also disclosed in an exchange filing on July 7 that it expects to book a capital deficit on its balance sheet from write-offs in relation to Del Monte Foods. Its equity investment in Del Monte Foods and certain receivables due from the US subsidiary are also expected to be subject to impairment. As at Jan 31, Del Monte Pacific's net investment value in Del Monte Foods was US$579 million. It also has US$169 million in net receivables from Del Monte Foods and its subsidiaries. In 2024, the US company accounted for 70 per cent of Del Monte Pacific's 2024 sales. Del Monte Foods' net loss position also caused the group to slip into the red. On July 7, Del Monte Philippines, another subsidiary of Del Monte Pacific, said operating profit for the year ended May 31 surged 40 per cent year on year to 8.6 billion pesos (S$194.8 million) . Total sales grew 14 per cent to 44.2 billion pesos. Del Monte Pacific will issue its year-end results by July 31, and address how Del Monte Foods' Chapter 11 filing in the US will impact the group's financials, the company said. Any impact will be reflected in Del Monte Pacific's first-quarter results for the 2026 financial year. Shares of Del Monte Pacific, which had fallen by 11 per cent to 5.6 cents at the close of last week, have since rebounded. On July 9, they closed up 4.5 per cent at 7 cents, making for a 25 per cent gain since last Friday (July 4).
Business Times
07-07-2025
- Business
- Business Times
Del Monte Philippines' FY2025 Ebitda rises 40%, as exports growth drives sales
[SINGAPORE] Del Monte Philippines said earnings for the year ended May 2025 rose, powered by higher domestic and international sales. The subsidiary of Philippine and Singapore-listed Del Monte Pacific said Monday (Jul 7) that Ebitda (earnings before interest, taxation, depreciation and amortisation) surged 40 per cent year on year to 8.6 billion Philippine peso (S$194 million). Total sales grew 14 per cent to 44.2 billion peso, as global sales jumped 22 per cent, fuelled by exports of fresh pineapple and packaged products. Domestically, sales rose 6 per cent, amid 'solid demand' across its key product categories, including beverages and packaged fruits. Describing the performance as 'strong', Del Monte Philippines' president and chief operating officer Luis Alejandro said the result reflects the company's 'focus on consumer engagement, innovation and cost efficiency'. The report comes as the company's Singapore-listed parent, Del Monte Pacific, is dealing with the fallout of a bankruptcy filing of its US subsidiary Del Monte Foods (DMF). BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Earlier on Monday, Del Monte Pacific said it expects to book a capital deficit on its balance sheet from write-offs in relation to DMF. The Singapore-based company said its equity investment in DMF and certain receivables due from the US subsidiary are expected to be subject to impairment. As at Jan 31, 2025, the Singapore-listed parent's net investment value in DMF was US$579 million. In a statement last week, it also said it had US$169 million in net receivables from DMF and its subsidiaries. Del Monte Pacific also said that the developments are not expected to disrupt its operations beyond the US. Last week, the company said it would have to deconsolidate DMF from its accounts as it no longer controls the US company. Del Monte Pacific's share price rose S$0.016 or 28.6 per cent to close at S$0.072 on Monday.
Straits Times
07-07-2025
- Business
- Straits Times
Del Monte Pacific expects capital deficit from write-offs of US unit's bankruptcy
Sign up now: Get ST's newsletters delivered to your inbox Del Monte Pacific, which has a market capitalisation of about $100 million, said its net investment value in its US unit was US$579 million, as at Jan 31. SINGAPORE - Singapore-listed canned food company Del Monte Pacific expects to record a capital deficit on its balance sheet from write-offs in relation to its US subsidiary Del Monte Foods (DMF), which last week filed for bankruptcy. Del Monte Pacific's equity investment in DMF and certain receivables due from the US subsidiary are expected to be subject to impairment, the group said on July 7 in a response to queries from Singapore Exchange about its ability to continue as a going concern. As at Jan 31, Del Monte Pacific's net investment value in DMF was US$579 million. In a statement last week, it also said it had US$169 million in net receivables from DMF and its subsidiaries. The company has a current market capitalisation of about $100 million. However, the company said that the developments are not expected to disrupt its operations beyond the US, even as the extent of the impairments and other material impacts are currently being finalised and will be disclosed by Jul 31, 2025. According to Del Monte Pacific's annual report for FY2024, DMF's sales accounted for more than 70 per cent of the group's sales. Del Monte Pacific clarified that it has not guaranteed any loans for DMF or its subsidiaries and that it has no contingent liability with respect to their financial obligations. The company will be stripping the US subsidiary from its consolidated accounts as it no longer controls the US unit after debtors replace majority of the latter's board. Top stories Swipe. Select. Stay informed. World Trump says US nears trade deals as tariff effective date delayed Singapore MPs should not ask questions to 'clock numbers'; focus should be improving S'poreans' lives: Seah Kian Peng Singapore Sequencing and standards: Indranee on role of Leader of the House Singapore NUS College draws 10,000 applications for 400 places, showing strong liberal arts interest Life Rock band My Chemical Romance to perform in Singapore in April 2026 Singapore Life After... blazing biomedical research trail in S'pore: Renowned scientist breaks new ground at 59 Singapore More students in Singapore juggle studying and working to support their families Life Star Awards 2025: 11 looks that shocked and charmed on the red carpet
Business Times
07-07-2025
- Business
- Business Times
Del Monte Pacific expects capital deficit from write-offs of US unit's bankruptcy
[SINGAPORE] Del Monte Pacific expects to record a capital deficit on its balance sheet from write-offs in relation to its US subsidiary Del Monte Foods (DMF), which recently filed for bankruptcy. Del Monte Pacific's equity investment in DMF and certain receivables due from the US subsidiary are expected to be subject to impairment, the group said on Monday (Jul 7) in a response to queries from Singapore Exchange about its ability to continue as a going concern. As at Jan 31, 2025, the Singapore-listed parent's net investment value in DMF was US$579 million. In a statement last week, it also said it had US$169 million in net receivables from DMF and its subsidiaries. The company has a current market capitalisation of about S$100 million. However, the company said that the developments are not expected to disrupt its operations beyond the US, even as the extent of the impairments and other material impacts are currently being finalised and will be disclosed by Jul 31, 2025. According to Del Monte Pacific's annual report for FY2024, DMF's sales accounted for more than 70 per cent of the group's sales. Del Monte Pacific clarified that it has not guaranteed any loans for DMF or its subsidiaries and that it has no contingent liability with respect to their financial obligations. The company will be stripping the US subsidiary from its consolidated accounts as it no longer controls the US unit after debtors replace the majority of the latter's board. Shares of DMP ended Friday unchanged at S$0.056.
Yahoo
04-07-2025
- Business
- Yahoo
It's gone pear-shaped at Del Monte Foods
How can a century(plus)-old brand fall into the position where Chapter 11 appears the best option to help the business? That's the question hanging over Del Monte Foods, the nearly 140-year-old company that this week announced it was entering Chapter 11 proceedings and is looking for a new owner. 'This is a strategic step forward for Del Monte Foods,' president and CEO Greg Longstreet said on Tuesday. 'A court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods.' The company, best known for its namesake brand of canned fruit and vegetables, has been owned since 2014 by Singapore and Philippines-listed Del Monte Pacific. Based in California, Del Monte Foods is also home to brands including College Inn broths and stocks and Joyba teas. With sales having recently come under pressure, laden with excess inventory and carrying debt from the Del Monte Pacific deal, the company has struck a 'restructuring support agreement' with creditors to pursue a 'going-concern sale process for all or substantially all' of its assets. Del Monte Foods says it has secured a commitment from its lenders for $912.5m in debtor-in-possession financing to keep the business going while a potential suitor is sought. It includes $165m in new funding, which is subject to court approval. The group has four factories – two in the US and two in Mexico. In May, the company shut a plant in Washington state. The closure followed three others last year. 'With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success,' Longstreet added. It's important to note that Del Monte Foods is distinct from the publicly listed – and fresh-foods-focused – Fresh Del Monte Produce. That company felt compelled to issue its own statement yesterday to underline it's not affiliated to Del Monte Foods. 'Fresh Del Monte Produce Inc.'s financial or operational performance is not impacted by that separate, unaffiliated company's announced legal or financial proceedings,' it said. 'The company remains financially strong, strategically aligned, and committed to delivering long-term value.' Fresh Del Monte Produce does own the Del Monte brand for prepared food products in Europe, Africa, and the Middle East – but Del Monte Foods holds the rights to the Del Monte brand for prepared food products in the US. And therein lies part of the reason for Del Monte Foods' woes. The company's range of shelf-stable products appeal less to the rising number of consumers in the US who are looking instead for minimally-processed, fresh-cut options. For Eddie Pearson, partner at US consultancy BeyondBrands, Del Monte Foods' move into Chapter 11 'isn't just a bankruptcy story – it's a snapshot of how quickly consumer preferences are rewriting the food aisle'. 'After nearly 140 years of keeping America shelf-stable, the iconic canned food brand is restructuring. Why? Because consumers have officially broken up with the can opener,' Pearson wrote on LinkedIn this week. 'The modern shopper wants fresh over shelf life, organic over artificial, farmers' market vibes over 'non-BPA liner' labels. Sure, Joyba bubble tea is still having its moment. But canned peaches? They're getting ghosted.' Del Monte Foods may also have been squeezed in a different way. Those US shoppers who are regular buyers of its type of canned fare may, in recent months, have been more attracted to the lower-price offerings sold under retailer own labels, especially at a time when consumer confidence has been under pressure. The company does manufacture products for US retailers' own labels but, as the Chapter 11 filings conceded, that side of the business 'has contracted substantially' after the recent plant closures. The recent tension over tariffs, especially the cost of inputs to make cans, would likely not have helped either. US industry body Consumer Brands Association has been vocal in its concerns about the US move to put tariffs on steel and aluminium. On top of all that, Del Monte Foods has held excess inventory in the wake of the Covid-19 pandemic. The company's sales were boosted during the worst of the pandemic amid the spike in at-home consumption and the temporary flight to well-known and staple brands. That elevated demand did not last. Then there are internal factors. Del Monte Foods has carried a pile of debt from the sale to Del Monte Pacific more than a decade ago. In the company's Chapter 11 filing, it said its annual cash interest costs stood at $66m in its 2020 fiscal year – but jumped to $125m in fiscal 2025 as its capital structure was refinanced and interest rates increased. In the wake of Del Monte Foods' statement on Tuesday, the price of Del Monte Pacific's shares listed in Singapore fell. Del Monte Pacific sought to underline its Asian and other international businesses continue 'to perform well, with resilient consumer demand, supported by a strong and stable supply chain'. The company added it is evaluating the potential impact of the Del Monte Foods' bankruptcy process, including any impairment charges that would have to be disclosed in future reporting. Nonetheless, according to Del Monte Pacific's annual report for fiscal 2024, Del Monte Foods accounted for 70% of its parent's sales. And those in logistics will be watching the situation closely. Logistics groups including CHEP USA, Saddle Creek and Uber Freight (as Transplace) are listed in the filings as creditors. "During the court-supervised process, Del Monte Foods will continue to fulfill customer orders across our portfolio of beloved brands during this process,' the group said. 'The company will have sufficient liquidity to continue paying vendors and suppliers for goods and services provided after the filing date. Our team remains focused on delivering high-quality food products that are healthy, delicious and convenient.' What lies further ahead remains to be seen. "It's gone pear-shaped at Del Monte Foods" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
