Del Monte Pacific addresses SGX concerns over $1b deficit

As of 30 April 2026, the company reported only $10.3m (US$8m) in cash.

Del Monte Pacific Ltd has defended its solvency after the Singapore Exchange Regulation (SGX RegCo) questioned the food group’s ability to continue as a going concern following a net capital deficit of $762.6m (US$589.9m) and current liabilities exceeding current assets by $1b (US$787.2m).

In response to SGX RegCo’s queries, the Singapore-listed canned food group said its financial challenges stemmed from its capital structure and debt obligations rather than a deterioration in its underlying business.

As of 30 April 2026, Del Monte Pacific reported only $10.3m (US$8m) in cash.

The company said this reflected its year-end working capital cycle and did not represent its full liquidity position, citing the availability of revolving credit facilities.

The group had $585.2m (US$452.7m) in revolving bank borrowings outstanding at the end of the financial year, which it said were renewed on an ongoing basis.

Del Monte Pacific said its board had assessed the group’s ability to continue operating and concluded that it remained a going concern, based on assumptions including continued cash generation from its Philippine operations, continued access to credit facilities and progress on its restructuring plans.

The company’s financial position has been affected by the collapse of its former US subsidiary, Del Monte Foods Holdings Ltd, which led to significant impairment charges and a capital deficit.

Del Monte Pacific said its main operating subsidiary, Del Monte Philippines, Inc. (DMPI), continued to generate profits.

DMPI recorded an operating profit of $198.6m (US$153.6m) and net profit of $133.3m (US$103.1m) for FY2026, representing growth of 43% and 37%, respectively, from the previous year.

The company said it expects DMPI to continue generating positive operating profit and operating cash flow in FY2027, supported by its domestic consumer food business, export markets, and product portfolio.

Del Monte Pacific said discussions with lenders over covenant requirements and debt restructuring remained ongoing.

One principal banking counterparty has granted a formal waiver for applicable covenant requirements through September 2027.

However, other major banking counterparties have not formally extended existing waivers beyond their current terms, which expire in or around September 2026.

($1 = US$0.77)

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