Costs linked to the takeover of Del Monte Foods earlier this year has hit annual profits at the US canned food maker.
The company, which was bought in March by a consortium of private-equity firms in a deal worth US$5.3bn, today (17 June) posted net income of $118.3m for the year to 1 May. The result included “transaction and related costs” of $151.6m. A year earlier, Del Monte filed net income of $244.3m.
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Operating income for the year reached $339.3m, although even without the transaction costs, it would still have fallen short of last year’s $508m.
Del Monte said operating income from its consumer products business was $180m, compared to $222.6m a year earlier, although $19.2m of takeover costs were included in this year’s result.
In its group figures, Del Monte did cite an adjusted EBITDA of $661m, which it said was up 5.4% on the year due to lower spending on marketing and G&A expenses. The company said it included adjusted EBITDA as it is used in covenants in the indenture for notes due in 2019 and loan deals.
Net sales, meanwhile, were down 2% at $3.67bn due to lower volumes within its consumer products business. Del Monte said it also spent more on promotions on consumer products and pet products.
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By GlobalData
