Nurturing Growth



We are a global branded food and beverage company that caters to today’s consumer needs for premium quality, healthy products.

Growth 1

The economic impact of Del Monte Pacific Group benefits more than our 5,600 regular employees. In addition, we have engaged service providers in all areas of our operations.

In the United States, Del Monte Foods is one of the largest producers, distributors and marketers of premium quality, branded food products for the US retail market. DMFI contracted with over 1,000 farmers across North America which supplied over 900,000 tonnes of produce in FY2018. 100% of the tomatoes, 99% of the vegetables and about 70% of the fruits we produce are grown in the US. Our relationships with farmers extend more than three generations. The fruits and vegetables are contractually grown on farms that collectively span over 28,300 hectares of land. Some Del Monte fruit growers include farm families that have produced for Del Monte for over 70 years. Our growth has a broader implication for farms across the United States.

Our pineapple plantation in the Philippines encompasses 10 municipalities in Bukidnon and seven towns in Misamis Oriental, Mindanao. We engage with over 50 supplier partners which provide various goods and services to the Company. An estimated 15,000 families or approximately 75,000 individuals directly or indirectly depend on the Company in southern Philippines.

Overall, our presence has immensely contributed to the region’s economic growth, creating a multiplier effect on the local economy by fueling local business, supporting the Group’s operations as well as serving day-to-day needs of our employees and their families.

Infographics Growth Final


Del Monte Pacific Ltd products


Our Performance





“If you always do what you always did, you will always get what you always got.”

Albert Einstein

For FY2018, the Group generated sales of US$2.2 billion, down 2.5% from prior year on higher Philippines and S&W Asia sales offset by lower USA and Europe sales. The US business accounted for US$1.7 billion or over 75% of total sales. The Philippine business delivered record sales of US$333.8 million, up 7% in peso terms. S&W business in Asia generated record sales as well of US$106.1 million, up 6% from FY2017.

Net Sales DMPL

DMFI increased its market share in the US across key categories in retail, i.e. canned vegetables, canned fruits and fruit cup snacks driven by compelling innovations, strong execution against fundamentals at retail, and sustained marketing investment to support its brands. DMPI also maintained its dominant market position in the Philippines in categories it competes in.

Our Performance Market Share US

Our Performance Market Share Phil

DMPL generated a gross profit of US$432.5 million, lower by 13% versus prior year, as gross margin decreased to 19.7% from 22% last year. The Company generated an EBITDA of US$102.3 million, lower by 47.3%. Half of the decline was attributed to one-off expenses amounting to US$29.1 million after deducting one-off gains. Without the one-off expenses, the Group’s EBITDA would have been US$165.0 million, down 22% versus FY2017.

The Group generated a net loss of US$36.5 million for the full year FY2018, unfavourable versus prior year’s net income of US$24.4 million mainly due to one-off expenses of US$48.5 million post-tax. Excluding one-off expenses, the Group’s net income would have been US$12.0 million, lower versus the recurring net income last year of US$45.5 million mainly due to higher marketing investment in the USA to reinvigorate the business in line with the Group’s long-range plan, coupled with lower export sales and significantly reduced pineapple juice concentrate pricing.

In FY2018, the Group focused on three key areas – deleveraging the balance sheet, strengthening our core business and innovating products and processes.

  1. The Group reduced its net debt at the end of FY2018 to US$1.4 billion, much lower than US$1.7 billion at the end of the prior year. We ended FY2018 with a net debt to equity ratio of 2.4x, a reduction from 2.9x in FY2017, and more significantly, 7.5x four years ago post-acquisition by executing the following initiatives:
    1. The Group raised about US$450 million of equity for debt repayment – US$300 million in April and December 2017 by issuing the first US Dollar denominated Preference Shares listed on the Philippine Stock Exchange, and US$150 million of capital through a Rights Issue in 2015.
    2. DMPL purchased US$126 million of loans in the USA that yielded significant principal and interest savings. These loans had been trading at substantial discount to par value in the secondary market and are the highest interest-bearing credit facility of the Group.
    3. The Group significantly improved its operating cash flow to US$322.9 million in FY2018 from US$187.1 million in the prior year, primarily by reducing inventory in the USA.

  2. With our US business generating 75% of Group sales, we strengthened our US leadership team with the appointment of a new Del Monte Foods CEO, Chief Marketing Officer, and Heads of Operations and Foodservice.

  3. Under the new DMFI leadership team, the Company has become more market-driven, innovative and aligned with consumer preferences, supported by a strong operations team.

  4. We divested the non-performing Sager Creek vegetable business in September 2017, closed its factory, and also shut down another plant in Indiana:
    1. As a result, we booked one-off expenses amounting to US$62.7 million in FY2018.
    2. These planned closures will lead to improvement in margins starting FY2019 as well as generate stronger cash flows through lower inventories.
    3. We continue to review our manufacturing and distribution footprint in the US.
    4. We also continue to strengthen our core business in Asia, both in the Philippines and S&W markets.

  5. Under the new DMFI leadership, there is an increased focus on innovation, significantly shifting project focus from base work to new product development.

  6. DMFI is working on vegetable and tomato innovation, especially in packaging and more value-added products for consumers, going beyond traditional, commoditised offerings.

  7. DMPL entered a new category of frozen pineapple using Nice Fruit’s breakthrough technology which allows fruits and vegetables to be frozen up to three years, and, once thawed, retain their original properties just like fresh.

  8. Our innovation in the Philippines will go beyond focusing on beverage, and will include more new product launches in fruits and culinary, focusing on value-added differentiated offerings.

  9. Innovation goes beyond launching new products, includes our processes, and cuts across all functions of our Company – in agriculture, production and supply chain, marketing and sales, digital, support functions and renewable energy.

  10. The Group donated US$1.3 million to various foundations and institutions in the US and the Philippines to fund numerous projects such as scholarship grants, technical training to unemployed community members, feeding programmes and relief operations.
Growth 2

Green bean deliveries


Responsible Sourcing Practices

The Group acknowledges the importance of building a strong partnership and healthy relationship with its suppliers. Accordingly, the Group conducts business with all customers on the basis of integrity, mutual interest and fairness. The Group prohibits the practice of forced and child labour.

In the United States, DMFI has a Supplier Code of Conduct that applies to any entity providing goods or services, including suppliers and subcontractors. The objective is for suppliers to practice and uphold ethical business standards. Del Monte’s Supplier Diversity Programme enables small and diverse businesses to be considered fairly as subcontractors and suppliers.

In selecting suppliers, Del Monte in the Philippines uses its Supplier Quality Management Programme (SQMP) which assesses the quality and delivery performance, feedback, recognition and continuous improvement programme for all direct materials suppliers and toll manufacturers.

  1. The Company performs periodic audits of contract manufacturers and direct suppliers. Some independent and unannounced audits are used to address quality assurance and compliance issues.

  2. It is our policy to seek out opportunities to buy from these suppliers where price, quality and delivery of service are competitive.

  3. DMFI has a Supplier Code of Conduct for suppliers to practice and uphold ethical business standards.

  4. DMPI issued a Code of Business Conduct to its suppliers which outlines the Company’s practices in building its relationship with suppliers while adhering to the principles of integrity, mutual interest and fairness in conducting business.

  5. In the Philippines, the Company has an SQMP for direct materials suppliers and toll manufacturers as an aid in the selection of best suppliers for the Company.

  6. The objective of the programme is to align DMPI’s quality parameters with that of suppliers, provide suppliers with performance scorecards, classify suppliers into certified, preferred, approved and conditional suppliers, and align suppliers with DMPI’s goals that would help support growth in the next five years. The programme serves as a tool to determine allocation of the Company’s requirements to suppliers.

  7. The suppliers are rated based on quality performance, delivery performance and competitiveness.