PHILIPPINE Rating Services Corp. (PhilRatings) said it was closely watching developments within the Del Monte Group following the bankruptcy filing of its US unit, but affirmed that this did not affect the positive credit rating of the group’s Philippine subsidiary, Del Monte Philippines, Inc. (DMPI).
Earlier this month, Del Monte Foods Holdings Limited (DMFHL), the US subsidiary of Del Monte Pacific Ltd. (DMPL), filed for Chapter 11 bankruptcy, resulting in the deconsolidation of DMFHL from the Del Monte Group.
In a statement dated July 17, PhilRatings clarified that “the bankruptcy proceedings do not relate to Del Monte Philippines, Inc. (DMPI), a company with outstanding bonds rated by PhilRatings.”
DMPI currently has P645.9 million in outstanding bonds maturing on Oct. 30, 2025, which remain rated “PRS Aaa,” with a stable outlook — the highest possible rating given out by PhilRatings.
The ratings agency noted that the Philippine subsidiary had previously settled P5.8 billion in bonds that matured on Oct. 30, 2023.
It added that it was in contact with DMPI and was monitoring the situation to assess any financial implications.
“The Company has maintained/stated that the bankruptcy proceedings of DMFHL will not negatively impact DMPI’s operations, its relationships with local banks, and access to financing,” it said.
Both DMPI and DMPL confirmed that they had not guaranteed any of DMFHL’s loans and “have no contingent liability with respect to DMFHL’s or its subsidiaries’ financial obligations,” PhilRatings emphasized.
Despite earnings challenges in the past two years, DMPI had managed returned to growth.
After reporting a 30 percent drop in net income to P2.6 billion in fiscal year (FY) 2024 due to declining revenues and higher costs, the company posted a strong recovery.
In the first nine months of the fiscal year ended Jan. 31, 2025, its net income surged 85.3 percent to P3.5 billion while revenues climbed 16.4 percent to P33.5 billion.
For the full fiscal year 2025, DMPI reported a 14 percent revenue increase to P44.2 billion, driven by strong exports of fresh and packaged pineapples, while earnings before interest, taxes, depreciation and amortization rose 40 percent to P8.6 billion.
DMPI’s cash flow from operations stayed positive, reaching P4.9 billion in 2024 and approximately P19.1 billion ($332 million) in 2025. As of end-January 2025, its current ratio stood at 0.9 times, while its debt-to-equity ratio was at 2.1 times.
PhilRatings said it will continue to evaluate developments within the Del Monte Group as new information becomes available.
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