Del Monte Posts $18.3 Million Quarterly Profit On Canned-Food Deal As Bananas Lose Money
Third-quarter sales rose 7.2% to $1.10 billion, but nine-month operating cash flow fell to $53.1 million and long-term debt climbed.
Del Monte Corporation, the fresh and packaged food company formerly known as Fresh Del Monte Produce, swung to a third-quarter net profit of $18.3 million, or $0.39 a share, from a $29.1 million loss a year earlier. Its new Del Monte Foods business carried the quarter while the banana unit posted a gross loss, the company reported Wednesday.
Packaged food carries the quarter
Net sales rose 7.2% to $1.10 billion, or 14.2% after stripping out the prior-year contribution of Mann Packing, a business the company sold in the fourth quarter of 2025. Gross profit rose 27.0% to $102.6 million, and gross margin widened 150 basis points (1.5 percentage points) to 9.4%, according to the earnings release.
Prepared Foods, the segment built around Del Monte Foods, bought in March 2026, delivered $261.2 million in sales and $45.8 million in gross profit. Its 17.5% gross margin was the highest of the four segments; a year earlier the segment had $61.5 million in sales.
Operating income was $29.1 million against a loss of $21.8 million a year earlier. Adjusted EBITDA, a measure the company defines to exclude one-time items, rose 5.0% to $60.9 million.
Bananas slip into a gross loss
Bananas, 29% of quarterly sales, generated $313.3 million in sales and a $2.7 million gross loss, against a $4.6 million gross profit a year earlier. Lower volume, including more competition and supply constraints in the Middle East, outweighed higher North American prices. Ocean freight and the Costa Rican colón added pressure, as did about $6.1 million of extra Costa Rica production costs to prevent Black Sigatoka, a plant disease, after unusually heavy El Niño-linked rain.
Fresh and Value-Added Products earned $50.5 million in gross profit on $461.3 million in sales, down from $64.3 million on $549.0 million. The company is closing four banana farms in Costa Rica. Chairman and CEO Mohammad Abu-Ghazaleh said the results offer "clear evidence of the strategic and financial value of our expanded Del Monte portfolio."
Debt up, cash flow down
The acquisition was financed in part with borrowing. Long-term debt stood at $482.5 million on September 25, against $173.0 million at the end of 2025. Inventories rose to $849.6 million from $581.9 million.
Net cash from operations for the first nine months of 2026 was $53.1 million, versus $234.2 million a year earlier. Del Monte, which sells fresh and prepared produce, juices and snacks mostly under the Del Monte brand, declared a $0.30 quarterly dividend payable December 4 to holders of record on November 11.
Management discusses the quarter on a conference call at 11:00 a.m. Eastern on Wednesday.
