Del Monte Q3 sales rise to US$1.1B as banana segment posts loss
Lower avocado and fresh-cut fruit volumes, together with the divestiture of Mann Packing in late 2025, weighed on sales.
UNITED STATES – Del Monte Corporation reported net sales of US$1.10 billion for the third quarter ended September 25, 2026, up 7.2% year on year, despite a gross loss of US$2.7 million in its banana segment, the company said.
The banana segment generated US$313.3 million in net sales but failed to cover direct costs, as lower shipment volumes, increased competition and supply constraints in the Middle East offset higher unit prices in North America.
The segment also faced higher ocean freight costs and currency pressures linked to the Costa Rican colón. Heavy rainfall associated with El Niño increased Black Sigatoka prevention costs in Costa Rica by approximately US$6.1 million.
Moreover, Del Monte continued to implement the previously announced closure of four banana farms in Costa Rica as part of its agricultural restructuring.
For fresh produce operators, bananas are the clearest signal of the quarter. A segment earning US$313.3 million but failing to cover direct costs shows that freight, disease prevention and currency costs have outpaced what the market will pay.
Meanwhile, Del Monte reported net sales of US$461.3 million and gross profit of US$50.5 million for the Fresh and Value-Added Products segment. Lower avocado and fresh-cut fruit volumes, together with the divestiture of Mann Packing in late 2025, weighed on sales.
Higher selling prices partially offset these declines, but higher pineapple cultivation costs, fresh-cut fruit expenses, distribution costs, and unfavourable currency movements reduced profitability.
In addition, the segment’s 10.9% gross margin lags Prepared Foods’ 17.5% margin. Prepared Foods generated US$261.2 million in net sales and US$45.8 million in gross profit.
Group gross profit rose 27% to US$102.6 million, and gross margin improved 150 basis points to 9.4%. Operating income reached US$29.1 million, with adjusted operating income of US$35.4 million. Net income attributable to the company totalled US$18.3 million, while adjusted EBITDA increased by 5% to US$60.9 million.
Other Products and Services reported net sales of US$59.5 million and a gross profit of US$9.0 million, supported by increased commercial cargo activity, despite rising fuel costs.
Lastly, net cash provided by operating activities totalled US$53.1 million for the first nine months of 2026. The company announced a quarterly dividend of US$0.30 per share, payable on December 4, 2026, to shareholders of record on November 11.
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