Del Monte Foods expects sales growth in the region 12% to 15% for 2007, over fiscal 2006 net sales of US$2,998.6m, mainly on the back of pet food purchases.
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The food and pet brand producer posted net sales of $907.2m for the third quarter, compared to $789.6m in Q3 last year, an increase of 14.9%, driven by the acquisitions of pet brands Meow Mix and Milk-Bone.
Del Monte said that the strength of these recently acquired pet businesses would enhance the long-term earnings performance of the company.
Income from continuing operations was $45.1m in the third quarter, or $0.22 EPS, compared to $45.2m, or $0.22 EPS in the previous year. Results for third quarter included $0.02 of transformation-related expenses, $0.01 of purchase accounting impact, and $0.01 of integration expense, the company said.
“This quarter’s solid financial results were driven by the ongoing successful execution against our strategic initiatives as we continue to strengthen the foundation of Del Monte,” said Richard Wolford, chairman and CEO of Del Monte Foods.
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By GlobalDataThird quarter EPS from continuing operations was flat versus the previous year, partially offset by higher costs, lower volume, and higher marketing and interest expense.
Consumer Products net sales were $551.0m for the quarter, a decrease of 2.0% from net sales of $562.3m in the prior year period, with StarKist Seafood net sales decreasing by 2.8% primarily due to lower volume from pricing actions and other factors.
The company reported net sales for the first nine months of fiscal 2007 of $2,474.8m compared to $2,199.4m last year, an increase of 12.5%. Income from continuing operations was $76.2m for the first three quarters.
For the fiscal 2007 fourth quarter, the company expects to deliver sales growth of approximately 13% to 15% over net sales of $799.2m. Diluted EPS from continuing operations is expected to be approximately $0.13 to $0.16. Del Monte’s fiscal 2007 ends in June.
The company narrowed its fiscal 2007 EPS guidance range and now expects diluted EPS from continuing operations to be $0.50 to $0.53, compared to previous guidance of $0.48 to $0.53 in fiscal 2007.
