Del Monte Foods has seen third-quarter profits rise on the back of pricing actions and cost control initiatives.
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The San Francisco-based tinned fruit and vegetable company today (25 February) posted third-quarter net income of US$60.5m, or $0.30 per share, compared to $53.3m, or $0.26 per share, in the year-ago quarter.
Sales climbed 8.4% to $942.3m from $869m in the three-month period, reflecting price increases and new product volume, the company said.
Over the first nine-months of the year the company reported a net sales increase of 11.5%, rising to US$2.56bn.
However, 9m income gains trailed sales growth – rising to $78.9m, or $0.40 EPS, compared to $77.0m, or $0.38 EPS, in the previous year.
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By GlobalDataNevertheless, Del Monte’s strong third-quarter enabled it to increase its full-year earnings guidance to $0.64-0.68 per share, up from $0.58-0.62 per share.
“Our earnings are now benefiting from our strategic pricing plan, which combined with our focused cost reduction program was critical in helping to combat the inflationary pressures that have been impacting the industry and Del Monte,” said chairman and chief executive Richard Wolford.
