A drop in sales and higher marketing spend hit third-quarter profits from Del Monte Foods’ consumer food business.
Del Monte, which sells consumer and pet food, today (8 March) reported a slide of 20.8% in third-quarter operating profit from its consumer business to US$32.3m.
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The decline, the company said, was primarily driven by higher marketing investment and unfavorable mix. This was partially offset by planned lower trade spending.
Consumer food sales, however, were up 1.8% to $501.2m, driven by planned lower trade spending. Unit volume declines, mainly in vegetable and produce, partially offset the increase.
Overall, Del Monte reported net profit of $28.3m compared to $28.6m in the prior year, Sales reached $1.03bn versus $971.1m last year, boosted by Del Monte’s pet food business.
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By GlobalData
