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.
The company filed a 13.7% drop in underlying earnings for the three months to 29 January due to lower profits from both sides of its business – consumer and pet products.
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However, while Del Monte saw sales of its pet products increase, revenue and earnings from its consumer unit fell.
Net sales from Del Monte’s consumer products business slid 3.6% to $492.3m on the back of lower volumes. The fall in sales led to adjusted EBITDA from the unit falling 23.6% to $57.1m.
The lower earnings from Del Monte’s consumer goods arm contributed to a 13.7% in group adjusted EBITDA to $164.6m. Sales inched up 0.2% to $971.1m thanks to increased volumes from new products and “list pricing actions net of trade spend” from its pet business.
“Consumer sentiment and macroeconomic factors continue to challenge the operating environment for both Del Monte Foods and the industry,” Del Monte CEO Dave West said today (12 March).
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By GlobalDataAdjusted EBITDA excludes charges including those linked to the takeover of the business last March by a consortium led by private-equity giant KKR.
Net income was $28.6m, compared to $87.1m a year earlier.
