Dave West, CEO of Del Monte Foods, is positive despite the profit slide

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.