Q2 2026 Del Monte Pacific Ltd Earnings Call Transcript
Key Points
- Del Monte Pacific Ltd (PHS:DELM) reported a 10% revenue growth in the second quarter, driven by higher sales in both the Philippines and international markets.
- The company's Fresh business experienced a significant growth of 22.5%, contributing to the overall robust results.
- Margin performance improved by 660 basis points to 34.2%, supported by increased volume, better pricing, and lower costs.
- EBITDA increased by 39.2% to $51.5 million, driven by higher sales and improved margins.
- Net debt was reduced by approximately $50 million, improving the net debt-to-EBITDA ratio by 2.2 times, indicating strong financial management.
- Cash flow from operations was slightly lower than the previous year due to inventory buildup ahead of the peak season.
- The company faces macroeconomic risks, particularly in the Philippines, where GDP growth slowed to 4% in the third quarter, potentially impacting volume performance.
- Second-half earnings are projected to be lower than the first half due to increased investments aimed at long-term growth.
- Market sentiments have been a headwind for capital raising efforts, particularly affecting the Philippines in recent months.
- There is a risk of volume performance being affected by macroeconomic conditions, which could impact future growth projections.
Good evening to everyone. Thank you for joining the Del Monte Pacific results briefing for the second quarter and first half ending October for fiscal year 2026.
Representing the company in this call are Cito Alejandro, Chief Operating Officer of Del Monte Pacific and President and COO of Del Monte Philippines; Parag Sachdeva, CFO of DMPL and DMPI; and I am Iggy Sison, Chief Corporate Officer of DMPL.
We were planning to go straight to Q&A earlier but since the results have just been uploaded, with our apologies, we will request Parag to go through at least the second-quarter and first-half results, just to begin the briefing.
This can be followed by the Q&A, which will be moderated by our colleague, Jennifer Luy.
Thank you, Iggy. Good evening, everybody, who is on the call. Thanks for making time.
Pleased to share with you our second-quarter results for fiscal '26.
Our revenue
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