Del Monte Foods Lifts Gross Profit as Bananas Post a Loss

The Tip Desk · November 9, 2026 · 3 min read

Gross profit rose 27.0% to $102.6 million in the quarter ended September 25, 2026, as Prepared Foods gross margin reached 17.5%.

Del Monte Corporation (DMC) reported net sales of $1.10 billion for the quarter ended September 25, 2026, up 7.2% from a year earlier, with adjusted net sales excluding Mann Packing up 14.2%.

Gross profit rose 27.0% to $102.6 million and gross margin expanded 150 basis points to 9.4% from 7.9% a year earlier. Operating income was $29.1 million, compared with a $21.8 million operating loss in the year-ago quarter. Net income attributable to Del Monte was $18.3 million, or $0.39 a share, versus a $29.1 million loss, or $0.61 a share, a year earlier. Adjusted operating income was $35.4 million, adjusted net income $23.6 million and adjusted diluted EPS $0.50. EBITDA was $54.6 million; adjusted EBITDA was $60.9 million, up 5.0%.

The company said the quarter provided further evidence of its transformation into a more diversified food platform six months after acquiring Del Monte Foods in March 2026. Prepared Foods contributed $261.2 million in net sales and $45.8 million in gross profit, a 17.5% gross margin the company said was the highest among its reportable segments, versus $61.5 million of sales and $4.0 million of gross profit, a 6.5% margin, a year earlier. The company said the acquisition drove the segment’s year-over-year growth.

Fresh and Value-Added Products generated net sales of $461.3 million and gross profit of $50.5 million, a 10.9% margin, versus $549.0 million of sales and $64.3 million of gross profit, an 11.7% margin, a year earlier. The company said year-over-year results reflected the fourth-quarter 2025 divestiture of Mann Packing and lower avocado and fresh-cut fruit volumes, partially offset by favorable pricing. Gross profit also reflected higher production costs for pineapples and fresh-cut fruit, increased distribution expenses and adverse foreign currency movements, partially offset by the absence of negative gross profit associated with Mann Packing in the prior-year period.

Bananas generated net sales of $313.3 million and a gross loss of $2.7 million, a 0.9% negative margin, versus $358.0 million of sales and $4.6 million of gross profit, a 1.3% margin, a year earlier. The company said lower banana volume, including increased competition and supply constraints in the Middle East, more than offset higher per-unit selling prices in North America. Gross profit was also affected by higher ocean freight costs, adverse Costa Rican colón currency and about $6.1 million of incremental production costs in Costa Rica associated with Black Sigatoka prevention after unusually heavy rainfall linked to El Niño. During the quarter the company continued implementing actions related to four banana farms in Costa Rica.

Other Products and Services generated net sales of $59.5 million and gross profit of $9.0 million, a 15.1% margin, versus $53.4 million of sales and $7.9 million of gross profit, a 14.8% margin, a year earlier, on higher commercial cargo activity.

Asset impairment and other charges, net were $8.8 million in the quarter, including $6.3 million of impairments tied to the prior-quarter closure of four Costa Rica banana farms and $2.4 million of Del Monte Foods acquisition-related costs, versus $55.5 million a year earlier.

Long-term debt was $482.5 million as of September 25, 2026, compared with $173.0 million at the end of 2025, primarily reflecting financing of the Del Monte Foods acquisition and inventory buildup. Inventories, net were $849.6 million. Net cash provided by operating activities for the first nine months of 2026 was $53.1 million. The board declared a quarterly cash dividend of $0.30 a share, payable December 4, 2026.