Del Monte income down 72% in year
June 22, 2012
SAN FRANCISCO — Net income for Del Monte Corp. in the year ended April 29 was $32.6 million, down 72% from $118.3 million during the previous year. Adjusted EBITDA declined 11% to $590.7 million, which compared with $661 million in the prior year period. Del Monte said the decline primarily was driven by higher operating costs, partially offset by list pricing actions net of trade spend and lower S.G.&A.
Sales for the year were $3,676.2 million, up slightly from $3,666.1 million during fiscal 2011.
“Our fourth-quarter results reflect solid performance from our new Pet Product launches and savings from productivity initiatives and we are optimistic about our business momentum,” said Dave West, chief executive officer of Del Monte Foods. “Our recent innovation launches of Meow Mix Tender Centers, Meow Mix Paté Toppers and Nature’s Recipe Grain Free had strong distribution gains. While we continue to face cost inflation and center store category headwinds similar to the rest of the industry, we are making strategic progress within Consumer Products. We also initiated several company-wide transformational initiatives to strengthen our go-to-market capabilities and drive further growth.”
During the fourth quarter the company had income of $14.4 million, which compared with a loss of $109.3 million during the same quarter of the previous year. Sales during the quarter were $934.6 million, down 2% from $951.2 million during the same quarter of the previous year.