US: Merger costs lead Del Monte to file H1 loss
Dave West, CEO of Del Monte Foods, is positive despite the profit slide
Del Monte Foods has reported a half-year loss of over US$10m after higher input costs and charges relating to the sale of the company in March hit its bottom line.
On Friday (9 December) the US-based food maker posted a net loss of $10.4m for the six months to the end of October, compared to a net income of $140.5m a year earlier.
Del Monte reported operating income of $156.4m, down from $267.4m the year before.
For its second quarter, Del Monte filed a net income of US$17.2m, compared to $81.1m in the same period last year. Operating income was $107m, down from $148m in the prior-year period.
Del Monte pointed to charges from the sale of the business to a private-equity consortium led by KKR earlier this year, as well as higher input costs.
The company did, however, see revenue rise 1.4% to $1.77bn during the first half of its financial year. Second-quarter revenue increased 5.7% to $994.3m, which Del Monte said was a result of new product volume and pricing.
CEO Dave West said the company was "on-track", despite the half-year loss. "While the macro environment remained challenging and input cost inflation was high, we delivered strong top-line results," he said.
Earlier this month, a judge approved a $89.4m settlement for Del Monte Foods shareholders who claimed they lost out when the company was sold.
Investors in Del Monte launched lawsuits claiming they were shortchanged in the $5bn buyout, according to Bloomberg.
Del Monte Foods reported falling sales and profits from its consumer foods arm as it booked a decline in earnings for the third quarter of its financial year....
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