Del Monte Pacific (D03) Q2 2026 Earnings Report

The earnings call highlighted strong revenue and margin growth, significant increases in EBITDA and net profit, and effective debt reduction. However, there are concerns about cash flow, the impact of the economic slowdown in the Philippines, and a potentially weaker second half. The overall outlook remains positive with strong performance in several key areas.

During the Del Monte Pacific results briefing for the second quarter and first half of fiscal year 2026, several key metrics were highlighted. Revenue for the second quarter grew by 10%, with domestic business increasing by 9.3% in local currency and international growth at 6.6%, driven by a 22.5% rise in fresh exports. The company achieved a margin improvement of 660 basis points, reaching 34.2%, supported by increased volume, better pricing, and reduced costs. EBITDA rose by 39.2% to $51.5 million, while net profit increased by $14.5 million compared to the previous year. Net debt decreased by approximately $50 million, resulting in a net debt to EBITDA ratio of 6.1x, which is 2.2x better. Cash flow from operations was robust at $85.9 million for the quarter, despite a slight decline due to inventory buildup. For the first half, turnover rose by 11.3%, with international business also growing by 6.5%. Gross profit and EBITDA showed strong improvements, with EBITDA at $90.7 million, contributing to a significant net profit increase of $22.3 million. The company continues to focus on strategic capital structure improvements, including the potential sale of noncore assets, while maintaining strong interest from investors despite market volatility.