Tycoon Joselito Campos-Led's Del Monte Pacific experiences a record loss due to U.S. bankruptcy proceedings.
In a significant financial development, Del Monte Pacific, a leading canned food producer, reported a net loss of $834.4 million in its fiscal year ending April 2025. This was largely due to the bankruptcy of its U.S. subsidiary, Del Monte Foods, which filed for voluntary Chapter 11 bankruptcy earlier in the year.
The bankruptcy filing included a $912.5 million debtor-in-possession financing arrangement to support ongoing operations during the court-supervised sale period. As a result, Del Monte Pacific announced it will deconsolidate its U.S. subsidiary from its financial statements and will no longer provide financial support to Del Monte Foods. This means Del Monte Foods’ lenders will now control a majority of its board members, and Del Monte Pacific has transferred 25% of its ownership stake to these lenders.
The deconsolidation and related impairments will reduce consolidated earnings and asset values reported by Del Monte Pacific, affecting overall company performance adversely in the near term. Del Monte Pacific expects impairments and write-offs related to its equity investment and receivables from the U.S. subsidiary, which will create a capital deficit and negatively impact the parent company’s financial performance.
Prior to the bankruptcy filing, Del Monte Pacific had already skipped a debt payment linked to its U.S. subsidiary’s lenders, signaling financial strain stemming from the subsidiary’s difficulties. The wider losses were due to a $703.5 million write-down for Del Monte Pacific’s U.S. subsidiary.
However, the bankruptcy is aimed at stabilizing and potentially strengthening Del Monte Foods via a court-supervised sale process. Del Monte Pacific is considering combining with Del Monte Philippines to save on management expenses. Excluding the negative impact of the U.S. operations, Del Monte Pacific would have posted a $10.9 million net profit in the year ended April 2025.
On a positive note, Del Monte Philippines, a unit of Del Monte Pacific, ended April with $141 million in equity. This is a change from a $24.9 million net loss a year ago. Net profit at Del Monte Philippines increased by 61% to $75 million. Sachdeva is optimistic Del Monte Pacific will be profitable in the current year due to rising earnings at Del Monte Philippines.
Despite the challenges, the Campos family, who inherited Unilab, one of the Philippines' largest pharmaceutical companies, remains among the wealthiest in the Philippines with a net worth of $940 million, according to Forbes Asia.
In Singapore trading, Del Monte Pacific slipped 3.4%. The equity deficit at the parent company was $694.32 million, and liabilities were $753.8 million. Del Monte Pacific’s total liabilities as a group amounted to $2.9 billion at the end of April.
[1] Del Monte Pacific Ltd. (2025). Del Monte Pacific Ltd. Announces Deconsolidation of Del Monte Foods Holdings Co., Inc. from Financial Statements. [Press release] [2] Del Monte Foods Holdings Co., Inc. (2025). Del Monte Foods Announces Voluntary Chapter 11 Bankruptcy Filing and Entry into Debtor-in-Possession Financing Agreement. [Press release] [3] Del Monte Pacific Ltd. (2025). Del Monte Pacific Ltd. Reports Fiscal Year 2024-2025 Results. [Press release] [4] Del Monte Foods Holdings Co., Inc. (2025). Del Monte Foods Announces Filing of Voluntary Chapter 11 Bankruptcy Petition and Entry into Debtor-in-Possession Financing Agreement. [Press release]
- Following the bankruptcy filing of Del Monte Foods, Del Monte Pacific will no longer provide financial support to the U.S. subsidiary, resulting in a deconsolidation that is expected to reduce consolidated earnings and impact the company's overall performance negatively.
- In the wake of Del Monte Foods' bankruptcy, the lenders will now control a majority of its board members, and Del Monte Pacific has transferred 25% of its ownership stake to these lenders, marking a significant shift in the company's business and financial structure.
