Del Monte Pacific Ltd. (DMPL) aims to boost profitability by 2026 through strategic restructuring, inventory management, and supply chain optimization.
GLOBAL food and beverage company Del Monte Pacific Ltd. (DMPL) said it will be laying the groundwork next year for improved profitability by its fiscal year ending April 2026 through strategic restructuring, inventory management, and supply chain optimization .At an analyst briefing earlier this month, DMPL executives highlighted efforts to position the business for future success by reducing excess inventory, consolidating manufacturing operations, and implementing cost-saving measures.
'We're looking at additional assets where the opportunities exist, where we are underutilized and high costs in our production,' Del Monte Foods Inc. (DMFI) President and CEO Greg Longstreet said.'In general, we are restructuring and reorganizing to be asset light, a much simpler, smaller organization with less layers of management, increased spans of control, and overall lower operating costs,' he added.These efforts started last year 'with success' and the group is advancing the agenda this year,' Longstreet continued.While contributing to short-term costs, the said initiatives are expected to deliver substantial benefits by the second half of fiscal year (FY) 2026, the company added.A key achievement has been a $250 million reduction in inventory, aligning with its 30- percent reduction target. This disciplined approach has mitigated financial risks, improved its liquidity, and contributed to a forecast reduction in debt for its US business, it said.'Our inventory reduction is on track,' Del Monte Group Chief Finance Officer and Chief Operating Officer Parag Sachdeva said.He added that the group has seen 'excess inventory being reduced from 15 million cases to almost 5 .''We are sort of looking at reducing our profit leaks next year substantially, and that will help us get back to improving profitability from FY 2026 onwards,' he adde
Del Monte Pacific Restructuring Inventory Management Supply Chain Optimization Profitability
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