Del Monte Pacific Q2 profit surges on one-time expense adjustment

DEL Monte Pacific on Wednesday reported a surge in net profit for the second quarter, due mainly to a one-time adjustment to its expenses.

The group said 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.