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NDTV
03-07-2025
- Business
- NDTV
Canned Goods Giant Del Monte Foods Files For Bankruptcy, Details Inside
Del Monte Foods, a household name synonymous with canned goods and packaged foods, has filed for bankruptcy. This move marks a dramatic shift for the company, which has been a staple in American kitchens for generations. The company announced that it has voluntarily entered Chapter 11 and is undergoing a process to sell its assets. "After a thorough evaluation of all available options, we determined that a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and more enduring Del Monte Foods," said President and CEO Greg Longstreet. Also Read: Watch: Italian Dessert Tiramisu Served In Japan With A Matcha Twist Is Viral Now The canned food company has obtained $912.5 million in new funding, which will enable it to stay afloat throughout the selling process and continue to operate normally as it approaches the peak canning season. According to court documents, the corporation stated liabilities valued between $1 billion and $10 billion. "With an improved capital structure, enhanced financial position, and new ownership, we will be better positioned for long-term success," Longstreet added. Del Monte has been dealing with numerous geopolitical and economic problems for a while. The company stated in the filing that demand reached all-time highs during the coronavirus epidemic when more people were dining at home, and the firm pledged to increase production levels. However, Del Monte was left with too much inventory, which compelled it to hold, write off, and "sell at substantial losses." Also Read: Kylie Jenner's Midweek Spread Looks Oh-So-Delicious. Here's The Menu The company added that it has a significant debt load since Del Monte Pacific Limited bought it in 2014 and borrowed money to pay for the purchase. The company's annual cash interest payment has nearly quadrupled since 2020 as interest rates have continued to rise. Del Monte began operations in 1886, and in 1907, it constructed its renowned cannery in San Francisco. By 1909, the firm claimed to have run the world's largest fruit and vegetable cannery. Advertisement For the latest food news, health tips and recipes, like us on Facebook or follow us on Twitter and YouTube. Tags: Del Monte Foods Bankruptcy Food Show full article Comments
Yahoo
23-04-2025
- Business
- Yahoo
Del Monte Pacific (SGX:D03) adds S$17m to market cap in the past 7 days, though investors from three years ago are still down 79%
Del Monte Pacific Limited (SGX:D03) shareholders should be happy to see the share price up 14% in the last week. But the last three years have seen a terrible decline. The share price has sunk like a leaky ship, down 80% in that time. So it sure is nice to see a bit of an improvement. Of course the real question is whether the business can sustain a turnaround. We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway. On a more encouraging note the company has added S$17m to its market cap in just the last 7 days, so let's see if we can determine what's driven the three-year loss for shareholders. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Del Monte Pacific wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. In the last three years, Del Monte Pacific saw its revenue grow by 2.4% per year, compound. That's not a very high growth rate considering it doesn't make profits. But the share price crash at 22% per year does seem a bit harsh! While we're definitely wary of the stock, after that kind of performance, it could be an over-reaction. Of course, revenue growth is nice but generally speaking the lower the profits, the riskier the business - and this business isn't making steady profits. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic. While the broader market gained around 19% in the last year, Del Monte Pacific shareholders lost 26%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 0.7% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Del Monte Pacific you should know about. If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Singaporean exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
