Lower second-quarter sales and investment in marketing has hit half-year profits from Del Monte Foods’ consumer food business.
Del Monte, which sells consumer and pet food, today (7 December) reported a 15% slide in first-half operating profit from its consumer business of US$56m.
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Consumer food sales fell 0.1% to $875.5m after second-quarter revenue from the business decreased 2.3%. Del Monte said a shift in promotions and category “softness” hit consumer food volumes in the second quarter.
Overall, Del Monte reported net profit of US$35.9m for the first half of its financial year, compared to a $10.4m loss a year earlier, when costs from its sale to a consortium of private-equity firms hit its bottom line.
