Trading of canned fruit company Del Monte Pacific Ltd. (DMPL) will remain suspended despite the filing of its annual report, the company said in a disclosure to the Philippine Stock Exchange.
The company’s shares remain suspended from trading due to an audit disclaimer on its fiscal year 2025 annual report.
An independent auditor’s report from Ernst and Young LLP issued a disclaimer on DMPL’s “carrying values of the assets and liabilities of our U.S. subsidiary group, Del Monte Foods Holdings Limited (DMFHL) which assets had been classified as ‘assets held for disposal’ and presented as ‘discontinued operations.’”
“The disclaimer arose from the auditors’ inability to obtain sufficient evidence on the recoverable values of these assets and related liabilities due to the ongoing U.S. Chapter 11 process,” DMPL said.
While trading of DMPL’s shares remains suspended in the local bourse, its shares in the Singapore Stock Exchange are still active.
Under the rules of the Philippine Stock Exchange (PSE), an audit disclaimer in the audited financials is an automatic ground for trading suspension. The Singapore Stock Exchange (SGX) does not have the same rules.
Meanwhile, the company said it has filed a petition with the PSE to lift the trading suspension. It argued that the audit disclaimer pertains only to discontinued operations of the U.S. business for fiscal year 2025, which ended April 30, 2025.
The U.S. operations have been deconsolidated from the company’s financial accounts effective May 1, 2025.
DMPL also noted that the consolidated financial statements of the continuing operations are unaffected and remain reliable. It said it has fully impaired its investments and other assets in DMFHL.
The company said in its financial report it had incurred $703.4 million in impairment losses due to the deconsolidation of its U.S. subsidiary.
