Del Monte Pacific Limited

In the second quarter of fiscal 2026, revenue grew 10%; domestic business rose 9.3% in local currency and international business rose 6.6%, led by fresh, which grew 22.5%. Gross margin increased 660 basis points to 34.2%. EBITDA was $51.5 million, up 39.2%, and net profit increased by almost $14.5 million year over year. Cash flow from operations was $85.9 million, and net debt fell by roughly $50 million, or 4.8%, with net debt/EBITDA at 6.1x, down 2.2x. For the first half, turnover increased 11.3%, international business grew 6.5% with fresh exports up 16%, EBITDA rose 26.2% to $90.7 million, net profit was $22.3 million, and cash flow from operations was $162.7 million. Management said second-half margins should remain strong, but volume could be affected by Philippines macro conditions, and second-half earnings may be below first-half levels because of higher growth investments.

Cito Alejandro framed the fresh business as the main strategic engine, saying the company has improved quality delivery over the past 12 months and is seeing solid demand in key markets like China and Korea. He said the business is positioned for sustainability because the plantation is already planted, the long-range plan runs through 2030, and the company is focusing on both commercial execution and supply-chain management. His tone was confident and explanatory, emphasizing that current growth is supported by better execution rather than a one-off spike.

Parag Sachdeva highlighted that the quarter showed stronger sales, a 660-basis-point gross margin expansion to 34.2%, EBITDA of $51.5 million, and lower net debt by roughly $50 million. He said cash flow from operations remained strong at $85.9 million in the quarter and $162.7 million in the first half, even with some inventory buildup ahead of peak season. On capital allocation, he said the company continues to pursue noncore asset sales, lower leverage, and possible equity raising, with continued interest from strategic investors despite weaker Philippines market sentiment.

Analysts asked whether the higher gross margin and fresh pineapple sales growth were sustainable. Management answered that margins should hold or improve, citing fresh business momentum, plantation productivity gains, and efforts to reduce defectives, line losses, obsolescence, and other inefficiencies. On fresh pineapple, management said quality improvements, solid demand in China and Korea, the ability to plan volume through 2030, and the premium Deluxe variety all support continued growth, while also noting competitors’ agricultural problems have helped supply dynamics. They also said second-half earnings should remain strong, but volume could be pressured by macro conditions in the Philippines and second-half results may trail the first half because of higher investment for growth.