Del Monte Pacific revealed that net profit plunged in the second quarter as acquisition-related expenses weighed on the bottom line.
The company said net profit fell to US$200,000 in the three months, down from $8.9m in the prior year period.
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Acquisition costs related to the group’s takeover of US company Del Monte Foods totalled $20.5m, the company said. These included interest expenses from long-term debt and short-term bridge financing, Del Monte Pacific revealed. The group plans to refinance these with equity, the company added.
“We are committed to significantly deleveraging Del Monte’s balance sheet by reducing debt in the next quarter through an international perpetual preference share offering followed by a rights issue which is expected to raise $515m,” CEO Joselito D Campos Jr said.
However, operating profit in the quarter to 31 October was up, rising to $25.4m from $16.1m.
Revenue rose from $136.3m to $548m, the company said.
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