Del Monte Foods issued a mixed outlook today (28 August) as it posted a first-quarter loss due to increased input costs.
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Del Monte posted a loss of US$10.1m, or $0.05 per share, for the first quarter ended 27 July. The group saw profits of $3.5m, or $0.02 per share, in the comparable period of last year.
Revenue rose 16% to $726.2m from $626.8m.
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“I am pleased with the company’s quarterly topline performance driven by strong volume, primarily in consumer products, as well as effective pricing actions and successful new product sales,” said Richard Wolford, chairman and CEO of Del Monte Foods. “However, our businesses continue to be negatively impacted by inflationary costs pressures which further accelerated during the first quarter.”
These pressures prompted Del Monte to say earning per share would likely come in at the lower end of its $0.58-$0.62 guidance range.
However, the company did predict sales growth of 6-8% for the full year, up from its previous forecast of 5-7%.
“Combating cost increases through pricing actions and productivity gains remains a critical priority, and we believe we are on track to offset costs in the back half of fiscal 2009,” Wolford added.
