Del Monte taps UBS for overseas fund raising

The Campos family’s Del Monte Pacific Limited (DMPL) is testing the appetite of the overseas market for its plan to raise fresh funds through a dollar-denominated Senior Perpetual Capital Securities Offering.

In a disclosure to the Philippine Stock Exchange, the firm said the fund-raising activity will be done through Jubilant Year Investments Limited (JYIL), a whollyowned subsidiary of DMPL’S Philippine subsidiary Del Monte Philippines, Inc. (DMPI).

Del Monte said has mandated UBS as Sole Global Coordinator, Lead Manager and Bookrunner to arrange a series of fixed income investor meetings and calls commencing on Feb. 19, 2024.

“A Reg S US$ Senior Perpetual Capital Securities Offering may follow, subject to market conditions. The issuance will be guaranteed by DMPI, and Philippine Packing

Management Service Corporation,” DMPL said.

Last December, DMPL reported a net loss of $21.6 million for the first half of its fiscal year (May to October 2023) from a net profit of $19.0 million in the same period of 2022 due to lower operating results.

The firm said it grew sales by 2 percent to $1.2 billion on higher USA sales; however, gross profit declined by 28 percent to $243.8 million on higher costs.

Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 41 percent to $115.0 million from $194.5 million.

For the second quarter (August to October 2023), DMPL generated sales of $667.1 million, down 5 percent due to lower sales in the USA by subsidiary Del Monte Foods, Inc. (DMFI), and lower exports of fresh and packaged pineapple by DMPI.

Sales in the Philippine market were flat in US dollar terms.