US food group Del Monte Foods has recorded an increase in first quarter profits and reaffirmed its full-year guidance.
For the three months ended 1 August, income from continuing operations increased by US$1m to reach $59.9m.
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Operating income however, declined 1.2% to $119.4m, reflecting the negative impact of the topline, partially offset by lower costs as well as favourable mix.
Reported net sales also dropped, sliding to $804.6m from $813.7m last year.
For fiscal 2011, the company said now expects net sales growth of 1% to 3%, compared to previous expectations of 2% to 4%.
EPS is expected to remain at $1.38 to $1.42 consistent with the company’s long-term growth target of 7% to 9%.
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By GlobalData“Our 1.1% topline decline reflects lower revenue from our consumer business with continued healthy topline performance in the pet business,” said Richard Wolford, chairman and CEO of Del Monte Foods. “We are not satisfied with our first quarter consumer sales, but expect performance will strengthen in the second half as competitive and category performance return to historical levels and as we deliver growth through the key holiday seasons.”
Click here to view the full earnings release and check back later for further insight into the firm’s first quarter results.
