Acquisition expenses dampen Del Monte's earnings

DEL Monte Pacific, known for its canned pineapples and ketchup, showed the effects of its purchase of namesake US food company Del Monte Foods in its latest consolidated financial results.

Net loss for the transitional four months ended April 30 was US$42.8 million, compared to a profit of US$6.6 million for the equivalent period pre-consolidation. Revenue was US$379 million, up from US$128 million pre-consolidation.

The loss came from non-recurring items like one-off acquisition-related transaction fees, higher-than-average fixed costs and the higher cost of goods sold due to an upward revaluation of inventory.