DEL MONTE PACIFIC Ltd. (DMPL) shares resumed trading on Monday after the Philippine Stock Exchange (PSE) lifted a suspension tied to the company’s audit disclaimer.
The PSE said in a notice that it reinstated trading of DMPL shares at 10:30 a.m. following a “detailed discussion” on the impact of excluding its US subsidiary from its financial condition, business operations, and overall performance.
In a disclosure, DMPL said the disclaimer attached to its fiscal year ending April 30, 2025 audited financial statements was not due to any breach of accounting standards or restrictions on audit procedures, but rather from limited access to evidence amid its US subsidiary’s bankruptcy proceedings.
“The audit disclaimer pertains only to the carrying values of the assets and liabilities of, the company’s investment in, and its share in the net losses of its US subsidiary Del Monte Foods Holdings Ltd. (DMFHL),” it said.
DMFHL filed for voluntary Chapter 11 bankruptcy in April and has since been deconsolidated from DMPL’s financial statements.
It is now classified as assets held for disposal and presented as discontinued operations in accordance with IFRS/PFRS.
“Since exposures to the US operations have been fully impaired and segregated, any further developments in the Chapter 11 proceedings are not expected to materially impact the company’s consolidated financial statements going forward,” DMPL said.
The company added that its Philippine and Asian businesses, which account for its continuing operations, “remain fully audited without qualification” and that the disclaimer “has minimal bearing, if any, on the integrity of these results.”
For the year ended April 30, DMPL fully wrote down its investment and other assets in its US subsidiary, posting impairment losses of $703.4 million. Gross revenue, however, rose 11.06% to $789.46 million from $710.81 million a year earlier.
DMPL also noted that trading on the Singapore Exchange, where its primary listing is, was unaffected as the audit disclaimer does not trigger a suspension under SGX rules.
The PSE halted trading of DMPL shares on Sept. 16 after the company failed to file its annual report (SEC Form 17-A) on time. The company earlier said the delay stemmed from complications linked to its US subsidiary.
DMPL shares fell 9.83% or 41 centavos to close at P3.76 apiece on Monday. — Alexandria Grace C. Magno
