Del Monte Posts $1.10 Billion in Revenue Despite 7.2% Growth, Missing Estimates
Key Facts
Del Monte reported third-quarter results, posting revenue of $1.10 billion, below analysts’ estimates of $1.16 billion but up 7.2% from $1.02 billion a year earlier, according to Investing.com. Adjusted diluted earnings per share were $0.50, in line with consensus, while reported diluted earnings per share were $0.39, according to the company statement published via StockTitan. The company reported net income attributable to it of $18.3 million, compared with a net loss of $29.1 million in the same quarter a year earlier. The results thus combined year-over-year sales growth and a return to profit, on the one hand, with a revenue miss, on the other. The stock closed at $28.63 on October 27, according to EL7 data.
At the operating-profit level, gross profit rose 27.0% to $102.6 million, and gross margin widened 150 basis points to 9.4%, according to Investing.com. Reported EBITDA was $54.6 million, while adjusted EBITDA reached $60.9 million, up 5.0% year over year, according to the company statement. The wider margin and higher gross profit place these metrics alongside annual revenue growth, even as total sales fell short of the market estimate. The comparison between reported and adjusted earnings per share shows why specifying the earnings measure matters: the adjusted figure matched expectations, while reported diluted earnings per share remained at $0.39. The result therefore was not an earnings beat; the match was limited to adjusted earnings per share.
Prepared Foods stood out as a high-margin source within the company, generating sales of $261.2 million and gross profit of $45.8 million, with a gross margin of 17.5%, the highest among reportable segments, according to Del Monte’s statement. The chief executive said the segment adds “scale, attractive margins and more balance to our earnings profile” after six months of integrating Del Monte Foods’ business. The segment’s sales, profit and margin point to its weight in the results mix, while management tied its role to expanding scale and bringing greater balance to earnings. By contrast, the Fresh and Value-Added Products segment recorded sales of $461.3 million and gross profit of $50.5 million. The company attributed pressure there to lower avocado and fresh-cut fruit volumes and higher production and distribution costs, partly offset by favorable pricing.
The Banana segment faced additional production-related costs in Costa Rica; the company said efforts to prevent Black Sigatoka disease resulted in about $6.1 million in additional production costs during the quarter. It linked the expense to unusually heavy rainfall, which it said was associated with El Niño. As part of managing its agricultural footprint and improving operating efficiency, Del Monte said it continued actions related to the closure of four banana farms in Costa Rica, a measure announced previously. These developments put weather pressure and prevention costs alongside steps to reduce agricultural assets in the same country. The company statement also noted that the Fresh segment continued to face lower volumes and higher production and distribution costs, partly offset by favorable pricing.
For the broader period, net cash provided by operating activities was $53.1 million in the first nine months of 2026, down from $234.2 million in the same period of 2025, according to Investing.com. Long-term debt also reached $482.5 million on September 25, 2026, compared with $173.0 million at the end of 2025. The company said the increase in debt primarily reflected acquisition financing. This shows the return to quarterly net profit coincided with a steep decline in operating cash over the longer period and higher debt following the deal financing. In a shareholder-related move, the company declared a quarterly dividend of $0.30 per share, payable on December 4, 2026.
Management said its focus includes deepening commercial and operating collaboration, improving fresh produce and agriculture operations, and accelerating innovation across categories by drawing on the unified brand. The company had showcased six new product innovations at the 2026 IFPA Global Produce & Floral Show as part of its brand and innovation strategy. This direction comes alongside Prepared Foods’ effort to add scale, margins and earnings balance after six months of integration, and continued volume and cost pressures in fresh produce. The next dated milestone cited in the company announcement is the dividend payment on December 4, 2026.