Del Monte Pacific Ltd (DMPL) is considering raising between $500 million and $600 million through a private placement at its profitable subsidiary, Del Monte Philippines Inc. (DMPI), as part of a move to slash its debt load and address a capital deficit.
The canned fruit maker’s plan follows a hefty $703.4 million in impairment losses for the fiscal year ended April 2025 related to the discontinuation of its US business, which led to a net loss of $796.4 million for the parent company.
The private placement is the “first tranche of equity raising being contemplated,” which the company expects would lower its debt-to-EBITDA ratio from seven times to around four to five times, according to the minutes of its annual general meeting held on Sept. 29, which were disclosed on the stock exchange on Tuesday.
The company is also evaluating asset disposals to raise funds and is working with lenders to explore options to reduce financing costs.
Del Monte Pacific is still expected to maintain a controlling interest in DMPI, which has been its growth engine. However, the planned equity raising will result in share dilution, and the final size of the offering has not yet been determined.
DMPI achieved a 14-percent increase in its fiscal year 2025 sales to P44.2 billion, led by a 22-percent jump in international sales from exports of fresh pineapple and packaged products.
DMPL’s US-based subsidiary, Del Monte Foods Holdings Ld. Inc. (DMHFL), filed for bankruptcy in the US in July after the parent booked the significant impairment losses.
Excluding the US operations, Del Monte Pacific’s net income reached $48.9 million in fiscal year 2025, a turnaround from the $24.8-million net loss recorded in fiscal year 2024. Revenues rose to $789.4 million from $710.8 million.
The $796.4-million net loss recorded by the parent company for fiscal year 2025 was wider than the $129.2 million net loss it recorded the previous year.
DMPI’s domestic sales grew 6 percent to P21.4 billion, while international revenues expanded by 22 percent to P19.5 billion.
