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Hot stock: Del Monte shares up on Q2 profit surge

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SHARES of Del Monte Pacific rose on Wednesday after it reported a surge in net profit for the second quarter, due mainly to a one-time adjustment to its expenses.

The stock was up five Singapore cents, or 17 per cent, to S$0.34 at 10.55am. It was actively traded, with 3.6 million shares changing hands.

The group said earlier on Wednesday net profit for the three months ended Oct 31, 2015, stood at US$53.3 million, compared to US$185,000 for the same period a year ago.

Due to a one-time adjustment linked to Del Monte Foods' retirement plan amendment, its selling, general and administration expenses were reduced by US$39.4 million.

Sales for the three months rose 20 per cent to US$658 million.

Its recurring net profit of US$18.1 million reflects a turnaround after two years of losses attributed to acquisition and transition-related expenses since the group announced the purchase of Del Monte Foods in October 2013, the company said.