Q1 2027 Del Monte Pacific Ltd Earnings Call

September 10, 2026

Speaker #2: It's 9:30 a.m. Good morning, and thank you for joining Del Monte Pacific's results briefing for the first quarter of fiscal year 2027, ending July.

Iggy Sison: It's 9:30 AM. Good morning to all, and thank you for joining Del Monte Pacific's results briefing for the first quarter of FY 2027, ending July. Representing Del Monte on this call are Angie Go-Flaminiano, President and Chief Operating Officer of Del Monte Philippines, DMPI.

Iggy Sison: It's 9:30AM. Good morning to all, and thank you for joining Del Monte Pacific's Results Briefing for the Q1 of FY 2027, ending July. Representing Del Monte on this call are Angie Go-Flaminiano, President and Chief Operating Officer of Del Monte Philippines, DMPI.

Speaker #2: Representing Del Monte in this call are Angie Goff-Lamignano, President and Chief Operating Officer of Del Monte Philippines (DMPI), and Luis Alejandro Sison, Senior Advisor and former President and COO of DMPI.

Angie Go-Flaminiano: Morning, everyone.

Iggy Sison: Luis Alejandro, Senior Advisor and former President and COO of DMPI.

Speaker #4: Good morning.

Luis Alejandro: Good morning.

Speaker #2: —and Parag Sachdeva, Chief Financial Officer of Del Monte Pacific (DMPL), as well as DMPI, and I am Iggy Sison, Chief Corporate Officer of DMPL.

Iggy Sison: Parag Sachdeva, Chief Financial Officer of Del Monte Pacific, DMPL, as well as DMPI. I am Iggy Sison, Chief Corporate Officer of DMPL. We would like to highlight some key slides from our results briefing. Parag will discuss the Q1 results, followed by Angie's overview of our strategic priorities and outlook. We will then conclude with a capital structure update with Parag. Our colleague, Jennifer Luy, will moderate the Q&A session thereafter. We would now like to request Parag to go through the Q1 results. Thank you.

Iggy Sison: Parag Sachdeva, Chief Financial Officer of Del Monte Pacific, DMPL, as well as DMPI. I am Iggy Sison, Chief Corporate Officer of DMPL. We would like to highlight some key slides from our results briefing. Parag will discuss the Q1 results, followed by Angie's overview of our strategic priorities and outlook. We will then conclude with a capital structure update with Parag. Our colleague, Jennifer Luy, will moderate the Q and A session thereafter. We would now like to request Parag to go through the Q1 results. Thank you.

Speaker #2: We would like to highlight some key slides from our results briefing. Parag will discuss the first quarter results, followed by Angie's overview of our strategic priorities and outlook. We will then conclude with the capital structure update with Parag, and our colleague Jennifer Lui will moderate the Q&A session thereafter.

Speaker #2: So, we would now like to request Parag to go through the first quarter results. Thank you.

Speaker #4: Thank you, Iggy. And good morning, everybody. Pleased to share our first quarter financial highlights. DMPL sustained its growth trajectory from 2026. Sales of $222.1 million reflect a 9% increase in sales, driven by international markets.

Parag Sachdeva: Thank you, Iggy, and good morning, everybody. Pleased to share our Q1 financial highlights. DMPL sustained its growth trajectory from 2026. Sales of USD 222.1 million reflects a 9% increase in sales driven by international markets. Our net profit rose to USD 16.1 million from USD 5.5 million last year on improved sales and margins. The USD 703 million write-down of DMPL's US business at the end of fiscal 2025, is the main cause that results in a negative equity of USD 579 million and a net debt to equity ratio of -1.7 times as of 31 July 2026. Despite the strong profitability, unfortunately, the group cannot declare dividends due to its negative equity position. Next slide, please. In terms of our Q1 results, as I mentioned in the key highlights, we grew at 9%.

Parag Sachdeva: Thank you, Iggy, and good morning, everybody. Pleased to share our Q1 financial highlights. DMPL sustained its growth trajectory from 2026. Sales of $222.1 million reflects a 9% increase in sales driven by international markets. Our net profit rose to $16.1 million from $5.5 million last year on improved sales and margins. The $703 million write-down of DMPL's US business at the end of fiscal 2025, is the main cause that results in a negative equity of $579 million and a net debt to equity ratio of -1.7x as of 31 July 2026. Despite the strong profitability, unfortunately, the group cannot declare dividends due to its negative equity position. Next slide, please. In terms of our Q1 results, as I mentioned in the key highlights, we grew at 9%.

Speaker #4: Our net profit rose to $16.1 million from $5.5 million last year. On improved sales and margins, the USD 703 million write-down of DMPL's US business at the end of fiscal 2025 is the main cause that results in a negative equity of $579 million and a net debt-to-equity ratio of negative 1.7 times as of 31 July 2026.

Speaker #4: Despite the strong profitability, unfortunately, the group cannot declare a dividend due to its negative equity position. Next slide, please. In terms of our Q1 results, as I mentioned in the key highlights, we grew at 9%.

Speaker #4: And if we exclude the non-favorable FX impact on our domestic business growth numbers, we would have grown double digits, driven by a very strong performance of international markets.

Parag Sachdeva: If we exclude the unfavorable FX impact on our domestic business growth numbers, we would have grown double digit, driven by a very strong performance of international markets. We also took adequate pricing to cover for the recent volatility in commodity costs, which has been caused mainly by the US-Iran war since February and March of 2026. Our gross profit improved to 74.7 behind increased sales, mainly international business and also our improved margin profile driven by favorable pricing, better sales mix in fresh. Also favorable Forex, which benefits our international business and offset by higher product costs. Gross margin of 33.7% is up 120 basis points just for the very reasons that I just outlined. EBITDA, driven by gross profit improvement, was at USD 49.3 million, an increase of 25.7%.

Speaker #4: We also took adequate pricing to cover for the recent volatility in commodity costs, which has been caused mainly by the US-Iran war since February and March of 2026.

Speaker #4: Our gross profit improved to 74.7, behind increased sales, mainly in international business, and also our improved margin profile driven by favorable pricing, better sales mix, and Forex, which benefits our international business, offset by higher product costs.

Speaker #4: Gross margin of 33.7% is up 120 basis points, just for the very reasons that I just outlined. EBITDA, driven by gross profit improvement, was at $49.3 million, an increase of 25.7%.

Speaker #4: And behind our cash profit growth or EBITDA growth, net profit rose to $16.1 million versus $5.5 million last year, reflecting a 7.3% net margin as compared to 2.7%.

Parag Sachdeva: Behind our cash profit growth or EBITDA growth, net profit rose to USD 16.1 million versus USD 5.5 million last year, reflecting a 7.3% net margin as compared to 2.7%. Our net debt at USD 970 million is lower due to some loan repayments that we continue to strive and make. Net debt to EBITDA improved to 5.1x from 6.9x, reflecting improved profitability and debt reduction. Cash flow from operations at USD 57.6 million was again very robust despite the volatility that we are seeing in commodity costs, which leads to increased spending on growing pineapples. That is not fully reflected in the P&L just yet, as we cycle the cost over a period of 18 months to 36 months. With that, let me hand over to Angie to take you through the strategic priorities and outlook.

Parag Sachdeva: Behind our cash profit growth or EBITDA growth, net profit rose to $16.1 million versus $5.5 million last year, reflecting a 7.3% net margin as compared to 2.7%. Our net debt at $970 million is lower due to some loan repayments that we continue to strive and make. Net debt to EBITDA improved to 5.1x from 6.9x, reflecting improved profitability and debt reduction. Cash flow from operations at $ 57.6 million was again very robust despite the volatility that we are seeing in commodity costs, which leads to increased spending on growing pineapples. That is not fully reflected in the P&L just yet, as we cycle the cost over a period of 18 months to 36 months. With that, let me hand over to Angie to take you through the strategic priorities and outlook.

Speaker #4: Our net debt, at $970 million, is lower due to some loan repayments that we continue to strive to make. Net debt-to-EBITDA improved to 5.1 times from 6.9 times, reflecting improved profitability and debt reduction.

Speaker #4: Cash flow from operations at $57.6 million was again very robust, despite the volatility that we are seeing in commodity costs. This leads to increased spending on growing pineapples that's not fully reflected in the P&L just yet, as we cycle the costs over a period of 18 to 36 months.

Speaker #4: With that, let me hand over to Angie to take you through the strategic priorities and outlook.

Speaker #1: Thank you, Parag. Let me now take you through our strategic priorities and outlook. At Del Monte Philippines, our focus remains on building the underlying strengths of the business and driving sustainable growth and profitability across markets.

Angie Go-Flaminiano: Thank you, Parag. Let me now take you through our strategic priorities and outlook. At Del Monte Philippines, our focus remains on building the underlying strength of the business and driving sustainable growth and profitability across both our Philippine and international markets. As you have seen from Parag's presentation of our Q1 results, the international business continues to perform strongly, supported by resilient consumer demand and a stable supply. At the same time, we are operating in an environment that remains challenging and increasingly volatile. In particular, the US-Iran conflict has created additional pressure on key input costs, including fuel, fertilizer, and tin plate. We are therefore taking a very disciplined and deliberate approach to mitigating these pressures, as Parag had referenced to earlier.

Speaker #1: As you have seen from Parag's presentation of our first quarter results, the international business continues to perform strongly, supported by resilient consumer demand and a stable supply.

Speaker #1: At the same time, we are operating in an environment that remains challenging and increasingly volatile. In particular, the US-Iran conflict has created additional pressure on key input costs, including fuel, fertilizer, and tinplate.

Speaker #1: We are therefore taking a very disciplined and deliberate approach to mitigating these pressures, as Parag had referenced earlier. We are implementing pricing actions where appropriate and accelerating productivity initiatives across the supply chain and the entire organization, in fact.

Angie Go-Flaminiano: We are implementing pricing actions where appropriate, accelerating productivity initiatives across the supply chain, and the entire organization, in fact, diversifying sources for critical inputs and reducing waste and inventory write-offs. We are also maintaining very tight control over costs and discretionary spending. These actions are part of a broader effort to make the business more efficient and improve our earnings and cash-generating capacity on a sustained basis. Based on our stress testing, we believe that the business can absorb moderate adverse movements in these cost variables within our planning horizon. However, we remain appropriately cautious. The ultimate impact of both the geopolitical environment and El Niño remains uncertain, and we continue to monitor these very closely. Next slide, please. Beyond managing the near-term operating environment, we remain very focused on strengthening the business for longer-term growth.

Speaker #1: We are diversifying sources for critical inputs and reducing waste and inventory write-offs. We are also maintaining very tight control over costs and discretionary spending. These actions are part of a broader effort to make the business more efficient and improve our earnings and cash-generating capacity on a sustained basis.

Speaker #1: Based on our stress testing, we believe that the business can absorb moderate adverse movements in these cost variables within our planning horizon. However, we remain appropriately cautious, as the ultimate impact of both the geopolitical environment and El Niño remains uncertain, and we continue to monitor these very closely.

Speaker #1: Next slide, please. Beyond managing the near-term operating environment, we remain very focused on strengthening the business for longer-term growth. For the Philippine market, Del Monte continues to hold strong positions in our core leverage, culinary, and packaged fruit categories.

Angie Go-Flaminiano: For the Philippine market, Del Monte continues to hold strong positions in our core beverage, culinary, and packaged fruit categories. Our priority is to reinforce these positions while at the same time expanding the arenas in which we compete. We are developing new products that will allow us to participate in new segments and broaden our consumer base. We are also increasing our presence in growth channels such as convenience stores, food service, drugstores, schools, where we see opportunities to reach consumers across more consumption locations. In our international business, we intend to build on the strong momentum we have today. We will continue to defend and strengthen our leadership in fresh pineapples across North Asia while further expanding the S&W brand in important markets such as China and Japan. Operationally, one of our immediate priorities is managing the effects of El Niño on pineapple supply and quality.

Speaker #1: Our priority is to reinforce these positions while at the same time expanding the arenas in which we compete. We are developing new products that will allow us to participate in new segments and broaden our consumer base.

Speaker #1: We are also increasing our presence in growth channels such as convenience stores, food service, drugstores, and schools, where we see opportunities to reach consumers across more consumption occasions.

Speaker #1: In our international business, we intend to build on the strong momentum we have today. We will continue to defend and strengthen our leadership in fresh pineapples across North Asia, while further expanding the S&W brand in important markets such as China and Japan.

Speaker #1: Operationally, one of our immediate priorities is managing the effects of El Niño on pineapple supply and quality. Our teams in Mindanao are actively addressing this to protect the quality standards for which our products are known.

Angie Go-Flaminiano: Our teams in Mindanao are actively addressing this to protect both availability and the quality standards for which our products are known. While we recognize that FY 2027 continues to present a challenging operating environment, we remain confident in the underlying strength of the business. Our focus in the near term is to protect and strengthen our core businesses, pursue the areas where we see the greatest opportunities for profitable growth, improve operational efficiency, and strengthen the financial foundation of the company. Together with the restructuring initiatives that Parag will discuss next, we believe these actions will put Del Monte on a more sustainable path for long-term growth. Let me turn back to Parag to discuss our capital structure.

Speaker #1: While we recognize that FY2027 continues to present a challenging operating environment, we remain confident in the underlying strength of the business. Our focus in the near term is to protect and strengthen our core businesses, pursue the areas where we see the greatest opportunities for profitable growth, improve operational efficiency, and strengthen the financial foundation of the company.

Speaker #1: Together with the restructuring initiatives that Parag will discuss next, we believe these actions will put Del Monte on a more sustainable path for long-term growth.

Speaker #1: Let me turn back to Parag to discuss our capital structure.

Speaker #4: Thank you, Angie. As we have continued to maintain, we are in discussions with our principal creditors and other stakeholders, and we are working on a comprehensive framework which will establish a sustainable capital structure for the group.

Parag Sachdeva: Thank you, Angie. As we have continued to maintain, we are in discussions with our principal creditors and other stakeholders, and we are working on a comprehensive framework, which will establish a sustainable capital structure for the group. We recognize that the capital deficit at the holding company level, which has been caused by the impairment of our former US subsidiary, does not fully reflect the financial strength and underlying operating capacities of DMPL's core Philippine business, which is DMPI. At the same time, we also recognize that the performance of DMPI by itself is not sufficient to address the group's total liabilities of USD 1.2 billion or the negative equity at the DMPL level of USD 579 million. No equity raise by itself is expected to turn DMPL's equity position to positive. Our restructuring initiative is not premised on a single capital raising or an isolated transaction.

Parag Sachdeva: Thank you, Angie. As we have continued to maintain, we are in discussions with our principal creditors and other stakeholders, and we are working on a comprehensive framework, which will establish a sustainable capital structure for the group. We recognize that the capital deficit at the holding company level, which has been caused by the impairment of our former US subsidiary, does not fully reflect the financial strength and underlying operating capacities of DMPL's core Philippine business, which is DMPI. At the same time, we also recognize that the performance of DMPI by itself is not sufficient to address the group's total liabilities of $1.2 billion or the negative equity at the DMPL level of $579 million. No equity raise by itself is expected to turn DMPL's equity position to positive. Our restructuring initiative is not premised on a single capital raising or an isolated transaction.

Speaker #4: We recognize that the capital deficit at the holding company level, which has been caused by the impairment of our former U.S. subsidiary, does not fully reflect the financial strength and underlying operating capacities of DMPL’s core Philippine business, which is DMPI.

Speaker #4: At the same time, the performance of DMPI by itself is not sufficient to address the group's total liabilities of $1.2 billion or the negative equity at the DMPL level.

Speaker #4: $579 million. No equity raise by itself is expected to turn DMPL's equity position to positive. Our restructuring initiative is not premised on a single capital-raising or an isolated transaction.

Speaker #4: We are looking at a combination of measures and continue working on it, including debt restructuring, operational initiatives as Angie mentioned, also considering asset monetization, shareholder support—which continues to be there—and other capital measures.

Parag Sachdeva: We are looking at a combination of measures and continue working on it, including debt restructuring, operational initiatives, as Angie mentioned. Also considering asset monetization, shareholder support, which continues to be there, and other capital measures, which will be required to address the group's obligations and improve the position of its creditors and other stakeholders. As mentioned on slide 1, unfortunately, in the light of existing negative equity, DMPI does not expect to declare and pay dividends to its shareholders while the capital deficit remains outstanding. Thank you.

Speaker #4: This will be required to address the group's creditors and other stakeholders. As mentioned on slide 1, unfortunately, in light of existing negative equity, DMPL does not expect to declare and pay dividends to its shareholders while the capital deficit remains outstanding.

Speaker #4: Thank you.

Speaker #2: We would now like to open the floor for questions. You can also post your question in the Q&A box.

Iggy Sison: We would now like to open the floor for questions, and you can also post your question in the Q&A box.

Iggy Sison: We would now like to open the floor for questions, and you can also post your question in the Q and A box.

Speaker #1: We have some questions sent in advance, so I'm going to start with them. The first one is: there's a pending increase of minimum wage in the Philippines, under TRO as of the moment.

Jennifer Luy: We have some questions sent in advance, so I am going to start with them. The first one is: There is a pending increase of minimum wage in the Philippines under TRO as of the moment. In case this pushes through, what is the impact to the salary or labor expense of DMPI? Amount in terms of Philippine peso annually.

Speaker #1: In case this pushes through, what's the impact to the salary or labor expense of DMPI? Amount in terms of Philippine peso annually.

Speaker #4: Thank you for the question. I think what you are referring to is the pending TRO in Metro Manila, which increases the minimum wages in two tranches.

Parag Sachdeva: Thank you for the question. I think what you are referring to is the pending TRO in Metro Manila, which increases the minimum wages in two tranches. One at the end of July, and the second at the beginning of January. That reflects 8% to 12% increase. As you know, our main activity is more in Mindanao. To that extent, the increases were already taken in January 2026 and May 2026 and factored in our cost structure and plans. This increase in Metro Manila will mainly impact our logistics operations. The impact of that with the 8% to 12% increase is expected to be around $200,000 to $300,000 on an annual basis. However, we do recognize that in this inflationary environment, more such increases and minimum wages can be expected.

Speaker #4: One at the end of July, and the second at the beginning of January. That reflects an 8 to 12 percent increase. But as you know, our main activity is more in Mindanao.

Speaker #4: So to that extent, the increases were already taken in January 2026 and May 2026, and factored into our cost structure and plans. This increase in Metro Manila will mainly impact our logistics operations.

Speaker #4: And the impact of that, with the 8 to 12 percent increase, is expected to be around $200,000 to $300,000 on an annual basis.

Speaker #4: However, we do recognize that, in this inflationary environment, more such increases in minimum wages can be expected.

Speaker #1: Thank you, Parag. On the loan profile, out of the $974 million, how much is dollar-denominated and how much is peso-denominated or in other currencies?

Jennifer Luy: Thank you, Parag. On the loan profile, out of the $974 million, how much is dollar and how much is peso-denominated or other currencies?

Speaker #4: Thank you for the question. What is the peso-denominated amount of the total obligation that you just mentioned, Jen? $242 million equivalent is in peso terms.

Parag Sachdeva: Thank you for the question. What is peso denominated of the total obligation that you just mentioned, Jen? PHP 242 million equivalent is in peso terms at DMPI. That is the total amount. We now continue working in converting, on a priority basis, our dollar-denominated loans in DMPI into peso. That is what we are aiming for, and we have converted $52 million of loans towards end of July and early August from dollars to peso in DMPI's books.

Speaker #4: At DMPI. That's the total amount. We now continue working in converting on a priority basis our dollar our peso loans sorry, our dollar denominated loans in DMPI into peso.

Speaker #4: That's what we are aiming for. We have converted $52 million of loans towards the end of July and early August from dollars to peso in DMPI's books.

Speaker #1: Thanks, Parag. For interest expense, we paid $16 million for the quarter out of the $973 million loan. So his computation was an average interest rate of 6.73% per annum.

Jennifer Luy: Thanks, Parag. For interest expense, we paid $16 million for the quarter out of the $973 million loan. So his computation was an average interest rate of 6.73% per annum. Is that correct?

Speaker #1: Is that correct?

Speaker #4: About correct, yes.

Parag Sachdeva: About correct, yes.

Speaker #1: Okay, thanks. Now, moving on to the restructuring. Has the company already appointed legal and financial advisors for debt restructuring, and who are they?

Jennifer Luy: Okay, thanks. Now, moving on to the restructuring. Has the company already appointed legal and financial advisor for debt restructuring, and who are they?

Speaker #4: Yes, we have an advisor in place, both from a financial perspective. We keep seeking advice as required on legal and tax matters. So yes, we are working on a comprehensive solution with a local financial advisor, and also other advisors from time to time, both based in Singapore and the Philippines.

Parag Sachdeva: Yes, we have an advisor in place. Both from a financial perspective, we keep seeking advice, as required, on legal and tax matters. Yes, we are working on a comprehensive solution with a local financial advisor and also other advisors from time to time, both based in Singapore and the Philippines.

Speaker #1: Thanks, Parag. Next is: What assets are the company looking to monetize?

Jennifer Luy: Thanks, Parag. Next is: What assets are the company looking to monetize?

Parag Sachdeva: I can just share an example. Our divestment of India shares is a very good example of monetizing assets that are not strategic. In the light of the same, we are obviously exploring more.

Speaker #4: I can just share an example. Our divestment of India shares is a very good example of monetizing assets that are not strategic. So, in the light of the same, we are obviously exploring more.

Speaker #1: Thanks, Parag. Next is, for the strategy of restructuring, is the company looking to haircut the debt?

Jennifer Luy: Thanks, Parag. Next is: For the strategy of restructuring, is the company looking to haircut the debt?

Speaker #4: We are looking at a comprehensive refinancing, and the banks are obviously supporting us in many ways. We won't be able to share details about the same at this stage, since the discussions have not been approved by the Board of Del Monte Pacific or DMPI.

Parag Sachdeva: We are looking at a comprehensive refinancing, and the banks are obviously supporting us in many ways. We won't be able to share details about the same at this stage, since the discussions have not been approved by the board of Del Monte Pacific or DMPI.

Speaker #1: Thank you. The next question is: at $16 million of net profit per quarter, versus the $579 million of negative equity, this translates to nine full years before DMPL can go back to positive territory.

Jennifer Luy: Thank you. The next question is, at $16 million of net profit per quarter versus the $579 million of negative equity, this translates to 9 full years before DMPL can go back to positive territory. Is this $16 million per quarter earnings sustainable, or is this number over and under the estimated earnings? Is DMPL pursuing any funding options such as share offering, IPO, et cetera, in order to fast-track recovery of its financial standing?

Speaker #1: Is this $16 million per quarter in earnings sustainable, or is this number over or under the estimated earnings? Is DMPL pursuing any funding options, such as a share offering, IPO, et cetera, in order to fast-track recovery of its financial standing?

Speaker #4: I can confirm that our Q1 results do not include any extraordinary income or gain. That's number one. Number two, whether it's sustainable—as Angie mentioned—we are in a very volatile environment.

Parag Sachdeva: I can confirm that our Q1 results do not include any extraordinary income or gain. That is number 1. Number 2, whether it is sustainable, as Angie mentioned, we are in a very volatile environment. It is difficult to say whether this can be sustained. But definitely, we have good momentum in our international markets as we have outlined, and we will strive to maintain our profitability from a full-year perspective. Definitely, some margin impact can be seen in the H2 as the commodity headwinds do continue, and we may see a stronger impact from El Niño in the coming quarters, particularly in the H2 of our fiscal year.

Speaker #4: It's difficult to say whether this can be sustained. But definitely, we have good momentum in our international markets, as we have outlined. And we will strive to maintain our profitability from a full-year perspective.

Speaker #4: Definitely some margin impact can be seen in the second half as the commodity headwinds do continue. And we may see a stronger impact from El Niño in the coming quarters, particularly in the second half of our fiscal year.

Speaker #4: So those are the volatilities that we are dealing with. And we can just say that while Q1 performance was strong, and we will strive to do the same for the full year, we can't say that it'll be sustained at the same levels.

Parag Sachdeva: Those are the volatilities that we are dealing with, and we can just say that while Q1 performance was strong, we will strive to do the same in full year, but we cannot say that it will be sustained at the same levels.

Speaker #1: And the funding options to fast-track the recovery of our financial standing?

Jennifer Luy: The funding options to fast-track the recovery of our financial standing.

Speaker #4: As I mentioned—and I think Angie reinforced it in her strategic priorities—this continues to be our number one, most important initiative. We can assure our investors and stakeholders that we are working very actively with our lenders and other stakeholders.

Parag Sachdeva: As I mentioned, Angie reinforced it in our strategic priorities, this continues to be our number one important initiative, and we can assure our investors, our stakeholders, that we are working very actively with our lenders and other stakeholders.

Speaker #1: Thank you, Parag. We don't have any open questions at the moment. If the attendees have questions, please type them in the Q&A box.

Jennifer Luy: Thank you, Parag. We don't have any open questions as of the moment. If the attendees have questions, please type in the Q&A box. Thank you. We have a new question. When does the company expect to complete the debt restructuring? Based on the discussion with bank lenders, when will that conclude?

Jennifer Luy: Thank you, Parag. We don't have any open questions as of the moment. If the attendees have questions, please type in the Q and A box. Thank you. We have a new question. When does the company expect to complete the debt restructuring? Based on the discussion with bank lenders, when will that conclude?

Speaker #1: Thank you. We have a new question. When the company expects to complete the debt restructure when does the company expect to complete the debt restructuring?

Speaker #1: Based on the discussion with bank lenders, when will that conclude?

Parag Sachdeva: I can say that our goal is to complete them in the near future, which is in the next 2 to 3 months. We should be in a good position to have a more definite perspective with the lenders.

Speaker #4: I can say that our goal is to complete them in the near future, which is in the next two to three months. We should be in a good position to have a more definite perspective with the lenders.

Speaker #1: Thank you. Are there any updates on the negotiations with Sea Diner?

Jennifer Luy: Thank you.

Iggy Sison: Are there any other questions?

Jennifer Luy: Any updates on the negotiations with SEA Diner?

Speaker #4: Again, they continue to be constructive, and we will obviously be communicating more once our plans are approved and agreed with our lenders.

Parag Sachdeva: Again, they continue to be constructive, and we will be obviously communicating more once our plans are approved and agreed with our lenders.

Speaker #1: We have a new question: Will the company consider a payment-in-kind arrangement to reduce interest expense payments?

Jennifer Luy: We have a new question. Will the company consider payment in kind arrangement to reduce interest expense payments?

Parag Sachdeva: Yes. Everything, when you say in kind, if you meant future, that could be also an option.

Speaker #4: Yes. Every time you say 'in kind,' if you meant 'future,' that could also be an option. Any other questions from our participants on the call?

Iggy Sison: Any other questions from our participants in the call? There is a question, yeah.

Speaker #4: There's a question, yeah.

Speaker #1: Yeah, I asked earlier, the guy who asked that question on kind arrangement, on what he means by kind arrangement. He said payment of the interest that's not in cash, but in principal amount.

Jennifer Luy: Yeah. I asked the earlier guy who asked that question on kind arrangement on what he means by kind arrangement. He said payment of the interest that is not in cash, but in principal amount.

Speaker #4: I guess we can probably take it offline, Jen, and understand it better. But we look forward to your suggestion, and we will respond to you separately on that.

Parag Sachdeva: I guess we can probably take it offline, Jen, and understand it better.

Jennifer Luy: Yes.

Parag Sachdeva: But look forward to your suggestion, and we will respond to you separately on that. Thank you.

Speaker #4: Thank you.

Speaker #1: Are there any more questions? Okay, we have one new question. So far with the creditors, are there discussions to convert debt to equity, or warrants, or preference shares?

Jennifer Luy: Are there any more questions? Okay, we have one new question. So far with the creditors, are there discussions to convert debt to equity or warrants or preference shares?

Parag Sachdeva: Yes. We have floated the idea of doing so, but that won't be their first option or priority. Let me put it this way. Yes, but this idea has been floated and considered.

Speaker #4: Yes, we have floated the idea of doing so. But that's not the main—that's not what the banks would, sort of, that won't be their first option or priority.

Speaker #4: Let me put it this way: yes, but this idea has been floated and considered.

Jennifer Luy: Can management provide an updated view on the $70 million perpetual securities due for step-up in March 2027? Is redemption at the first call date currently the base case plan?

Speaker #1: Can management provide an updated view on the $70 million perpetual securities due for step up in March 2027? Is redemption at the first call date currently the base case plan?

Parag Sachdeva: Can you repeat that, please?

Speaker #4: Can you repeat that, please? Can you?

Jennifer Luy: Can management provide an update on the USD 70 million perp securities due for step-up in March 2027?

Jennifer Luy: Can management provide an update on the $70 million perp securities due for step-up in March 2027?

Speaker #1: Can management provide an update on the $70 million perpetual securities due for step-up in March 2027? Is redemption at the first call date currently the base case plan?

Parag Sachdeva: Yes.

Jennifer Luy: Is redemption at the first call date currently the base case plan?

Speaker #4: Yes, that's the base case plan—redemption. And our overall refinancing and capital structure discussions include a solution to that, too.

Parag Sachdeva: Yes. That's the base case plan, redemption. Our overall refinancing and capital structure discussions include a solution to that, too.

Speaker #1: Thank you. What are the bank lenders' priority or demand when approaching the debt restructuring?

Jennifer Luy: Thank you. What are the bank lenders' priority or demand when approaching the debt restructuring?

Parag Sachdeva: Their priority is to see some improvement in debt to equity, which means that there has to be some injection of equity in the near future. What they are looking for is a clear plan on the same, and that will allow us to then consider a more comprehensive capital structure and refinancing discussion.

Speaker #4: Their priority is to see some improvement in debt-to-equity, which means that there has to be some injection of equity in the near future.

Speaker #4: What they are looking for is a clear plan on the same, and that will allow us to then consider a more comprehensive capital structure and refinancing discussion.

Speaker #1: Do we have any more questions? Okay, there's a follow-up. So, how will the company inject equity without any raise in the rights issue?

Jennifer Luy: Do we have any more questions? Okay, there's a follow-up. How will the company inject equity without any raise in rights issue?

Parag Sachdeva: We are considering raising it at the level of DMPI or using the shares of DMPI to raise equity as one of the approaches to raise funds. As I said, there are more being considered. That is subject to board approval, as we go and share more comprehensive plan with our advisors in the coming weeks and months. As I said, it's through DMPI. That's one of the options being considered amongst a few others.

Speaker #4: We are considering raising it at the level of DMPI or using the shares of DMPI to raise equity. As one of the main or as one of the approaches to raise funds, as I said, there are more being considered.

Speaker #4: And that is subject to board approval as we go and share a more comprehensive plan with our advisors in the coming weeks and months. So, as I said, it's through DMPI; that's one of the options being considered.

Speaker #4: Amongst a few others.

Speaker #1: We don't have any more questions. Does anyone still have questions for us?

Jennifer Luy: We do not have any more questions. Does anyone still have questions for us?

Parag Sachdeva: Great. Thank you very much.

Speaker #4: Okay. Thank you very much.

Speaker #2: Are there any more questions?

Iggy Sison: Are there any more questions? If not, then we would like to conclude our results briefing. Thanks to all for joining us. Do reach out if you have any other questions or follow-ups.

Speaker #4: Yeah.

Speaker #2: If not, then we would like to conclude our results briefing, and thank you all for joining us. Please reach out if you have any other questions or follow-ups.

Speaker #4: Thanks a lot. Thank you. Thank you, Jen. Thank you.

Parag Sachdeva: Thanks a lot.

Iggy Sison: Thank you, everybody.

Parag Sachdeva: Iggy. Thank you, Jen. Thank you, everybody.

Jennifer Luy: Thank you. Thank you, everybody.

Speaker #1: Thank you. Thank you, everybody.

Speaker #4: Yeah.

Iggy Sison: Yeah. Thank you, Angie.

Speaker #2: Thank you.

Jennifer Luy: Thank you. Bye.

Angie Go-Flaminiano: Thank you. Bye.

Speaker #1: Bye-bye.

Speaker #3: Bye-bye.

Parag Sachdeva: Bye-bye.

Iggy Sison: See you.

Speaker #2: See you.

Operator: Goodbye

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Q1 2027 Del Monte Pacific Ltd Earnings Call

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