Q3 2025 Del Monte Pacific Ltd Earnings Call Transcript
Key Points
- Del Monte Pacific Ltd (PHS:DELM) achieved a significant inventory reduction of $312 million, improving days inventory by 42 days.
- The company reported a substantial improvement in free cash flows, generating $145 million compared to a $90 million outflow in the previous year.
- Debt reduction efforts were successful, with a decrease of $104 million in external debt, aided by inventory management and free cash flow improvements.
- The sale of the Hanford plant generated $56 million in cash proceeds, contributing to future gross margin improvements through a co-pack arrangement.
- Del Monte Pacific Ltd (PHS:DELM) completed a strategic investment in Agro Tech Foods Limited, enhancing distribution capabilities in the Indian market.
- The company faces challenges with profit leaks due to waste, incremental trade, and sundry losses, impacting gross margins.
- Gross margin decreased from 17.6% to 13.4%, driven by inflation, under-absorption of overheads, and increased distribution costs.
- Excess inventory remains a concern, with 8 million cases still in excess, requiring further reduction efforts.
- Interest expenses increased by $17 million due to refinancing, adding financial pressure.
- Tariffs on products imported from China and Mexico, as well as increased costs of steel and tinplate, pose potential headwinds for pricing and demand.
Good morning to our participants in Asia, and good evening to our callers in the US. Thank you for joining Del Monte Pacific's results briefing for the third quarter and nine months ending January 2025. Representing Del Monte in this call are Cito Alejandro, Group Chief Operating Officer of Del Monte Pacific, DMPL, and President and COO of Del Monte Philippines or DMPI; Parag Sachdeva, Group CFO of DMPL; Greg Longstreet, President and CEO of Del Monte Foods in the US; and I am Iggy Sison, Chief Corporate Officer of DMPL.
Parag Sachdeva will now present a few supplemental slides aside from the deck that we have uploaded. And these supplemental slides will form part of the video recording to be made available in Del Monte Pacific's corporate website. And thereafter, we will open the floor to questions. Thank you. Parag?
Thank you, Iggy. Good morning, everybody. Let me share with you a few insights to set up our -- set up the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
