Del Monte | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 1.219 B

Revenue: As of FY2026 Q2, the actual value is USD 1.219 B, missing the estimate of USD 1.305 B.

EPS: As of FY2026 Q2, the actual value is USD 0.44, missing the estimate of USD 0.53.

EBIT: As of FY2026 Q2, the actual value is USD 34 M.

Second Quarter 2026 Financial Highlights

Overall Performance

• Net sales for the second quarter of 2026 were $1,219.1 million, driven by higher net sales in the Prepared Foods segment, partially offset by lower net sales in the Fresh and Value-Added Products segment due to divestiture and lower banana sales volumes.
• Gross profit was $121.3 million, with a gross margin of 9.9%.
• Operating income was $33.5 million, while Adjusted operating income was $48.7 million.
• Net income attributable to Del Monte Corporation was $21.2 million, and Adjusted net income attributable to Del Monte Corporation was $34.2 million.

Segment Revenue and Gross Profit (Q2 2026 vs. Q2 2025)

• Fresh and value-added products: Net sales were $569.3 million, down from $649.9 million in Q2 2025. Gross profit was $62.9 million, down from $75.2 million, with a gross margin of 11.0%, down from 11.6%.
• Banana: Net sales were $361.1 million, down from $410.0 million in Q2 2025. Gross profit was $8.4 million, down from $30.0 million, with a gross margin of 2.3%, down from 7.3%.
• Prepared foods: Net sales significantly increased to $236.1 million, up from $72.7 million in Q2 2025. Gross profit rose to $44.6 million, up from $9.7 million, leading to a gross margin of 18.9%, up from 13.3%.
• Other products and services: Net sales were $52.6 million, up from $49.9 million in Q2 2025. Gross profit was $5.4 million, up from $5.2 million, with a gross margin of 10.3%, down from 10.4%.

Six Months Ended June 26, 2026 Financial Highlights

Overall Performance

• Net sales for the six months ended June 26, 2026, were $2,263.2 million, a decrease from $2,280.8 million for the same period in 2025.
• Gross profit was $210.3 million, compared to $212.2 million in the prior year, maintaining a gross margin of 9.3% for both periods.
• Operating income decreased to $53.6 million, from $113.2 million in the prior year.
• Net income attributable to Del Monte Corporation was $31.2 million, down from $87.9 million in the prior year.

Segment Revenue and Gross Profit (Six Months 2026 vs. Six Months 2025)

• Fresh and value-added products: Net sales were $1,118.2 million, down from $1,262.1 million in 2025. Gross profit was $122.7 million, down from $134.1 million, with a gross margin of 11.0%, up from 10.6%.
• Banana: Net sales were $718.3 million, down from $773.7 million in 2025. Gross profit was $24.9 million, down from $46.8 million, with a gross margin of 3.5%, down from 6.0%.
• Prepared foods: Net sales increased to $318.6 million, up from $143.6 million in 2025. Gross profit rose to $53.5 million, up from $20.0 million, with a gross margin of 16.8%, up from 13.9%.
• Other products and services: Net sales were $108.1 million, up from $101.4 million in 2025. Gross profit was $9.2 million, down from $11.3 million, with a gross margin of 8.5%, down from 11.1%.

Operational Metrics

• Selling, general and administrative expenses for Q2 2026 were $72.6 million, an increase from $51.3 million in Q2 2025. For the six months ended June 26, 2026, these expenses were $123.7 million, up from $99.3 million in the prior year.
• Asset impairment and other charges, net, for Q2 2026 were $14.8 million, significantly higher than $0.6 million in Q2 2025. For the six months ended June 26, 2026, these charges totaled $34.8 million, compared to $0.6 million in the prior year.
• Interest expense, net, for Q2 2026 was $6.4 million, up from $3.0 million in Q2 2025. For the six months ended June 26, 2026, it was $8.3 million, compared to $6.3 million in the prior year.
• Depreciation & amortization for Q2 2026 was $20.1 million, compared to $18.4 million in Q2 2025. For the six months ended June 26, 2026, it was $36.4 million, compared to $36.9 million in the prior year.

Cash Flow

• Net cash provided by operating activities for the first six months of 2026 was $94.0 million, a decrease from $159.2 million in the prior year, primarily due to lower net income and changes in working capital.
• Net cash used in investing activities for the first six months of 2026 was - $305.7 million, largely due to the acquisition of Del Monte Foods.
• Net cash provided by financing activities for the first six months of 2026 was $188.7 million, compared to net cash used in financing activities of - $81.2 million in the prior year.

Other Financial Indicators

• Long-term debt increased to $414.6 million at the end of Q2 2026, from $173.0 million at the end of 2025, reflecting the Del Monte Foods acquisition.
• The Board of Directors declared a quarterly cash dividend of $0.30 per share payable on September 4, 2026.
• During Q2 2026, the company repurchased 465,213 shares of common stock for $16.0 million at an average price of $34.40 per share, with $100.2 million remaining available under the current share repurchase program.

Outlook

Del Monte Corporation’s forward-looking statements indicate plans and expectations for future performance, including benefits from the Del Monte Foods acquisition and unlocking greater value from its agricultural platform. However, these statements are not guarantees and involve known and unknown risks and uncertainties that may cause actual plans and performance to differ materially. Key risks include challenges in executing the integration strategy, diversion of management’s attention, operating costs, potential litigation, ability to service additional indebtedness, and ongoing elevated commodity and supply chain costs.