Marketing costs drag down Del Monte Foods

by Jeff Gelski
Share This:
Search for similar articles by keyword: [Fruit]

SAN FRANCISCO — The top line’s negative impact and higher marketing costs to support a revitalization of the Del Monte brand primarily drove down adjusted EBITDA for the Consumer Products segment of Del Monte Foods, Inc. by 21% in the second quarter ended Oct. 28, the company said Dec. 7.

Adjusted EBITDA in Consumer Products fell to $56.1 million in the quarter, which compared with $70.7 million in the second quarter of the previous year. Second-quarter net sales in Consumer Products dropped 2% to $512.7 million from $524.7 million. Existing products (retail tomato) experienced unit volume declines because of a planned shift in promotional activities and category softness.

Companywide in the second quarter, Del Monte Foods’ adjusted EBITDA rose 1% to $160.7 million from $158.9 million in the previous year’s second quarter. Net sales increased 2% to $1,009.7 million from $994.3 million. The company’s Pet Products segment saw EBITDA decline to $99.9 million in the second quarter from $100.5 million, but segment net sales rose 6% to $497 million from $469.6 million.

For the six months ended Oct. 28, Del Monte Foods companywide had adjusted EBITDA of $274.3 million, up 6% from $260.1 million in the same time period of the previous year, and net sales of $1,830.8 million, up 3% from $1,770.5 million.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.

 

 


The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.