Del Monte Pacific continues to be weighed down by acquisition

Singapore

SHARES for Del Monte Pacific fell 0.5 cent to S$0.525 on Friday, after the firm revealed that the acquisition of US food company Del Monte Foods Inc (DMFI) continued to drag down its results.

The combined group made a net loss of US$21.9 million in the first quarter ended July 31, against a net profit of US$4.2 million a year ago. This is in spite of revenue rising from US$119.4 million to US$445.6 million, as acquisition-related expenses hit the bottom line.

These include higher interest expenses from a long-term loan to acquire DMFI, and short-term bridge financing, which will be refinanced with an equity offering in the Philippines, where Del …