Del Monte Q3 Sales Up 7.2%, Gross Margin Expands 150bps on Del Monte Foods Integration
DMC is trading near its 52-week low of $26.47 (8.2% above the low).
Summary
Del Monte posted Q3 fiscal 2026 net sales of $1.10 billion, up 7.2% (14.2% adjusted), with gross profit up 27.0% to $102.6 million and gross margin expanding 150 basis points to 9.4%. Diluted EPS came in at $0.39 and adjusted diluted EPS at $0.50, while adjusted EBITDA rose 5.0% to $60.9 million. The newly acquired Prepared Foods segment is doing the heavy lifting: $261.2 million in sales at a 17.5% gross margin, the highest of any segment, six months into integration. The weak spot is Bananas, which swung to a $2.7 million gross loss on lower volume, higher ocean freight, and roughly $6.1 million of extra Costa Rica production costs tied to Black Sigatoka prevention after heavy El Niño rains. Balance sheet leverage has climbed sharply — long-term debt is $482.5 million versus $173.0 million at the end of 2025, reflecting acquisition financing and inventory buildup, and nine-month operating cash flow fell to $53.1 million from $234.2 million. The board declared the usual $0.30 quarterly dividend, payable December 4 to holders of record November 11. The 11:00 a.m. ET call will be the place to press management on banana losses and the debt load.
At the time of this announcement, DMC was trading at $28.63 on NYSE in the Trade & Services sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $26.47 to $43.58. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.