Del Monte Pacific reverses into the red in Q2 on weak veggie business

FOOD and beverage company Del Monte Pacific on Tuesday reversed into the red for the fiscal second quarter on one-off expenses related to its underperforming vegetable business.

The group reported a net loss of US$2.82 million for the three months ended October 31, 2017, compared to a restated net gain of US$20 million for the same period a year ago.

This quarter's net loss included US$13.1 million of one-off expenses (net of tax), as the group shut the production facility in Siloam Springs, Arkansas. Del Monte also shut its tomato production facility in Plymouth, Indiana.

Excluding the one-off items, net profit for the fiscal second quarter stood at US$10.2 million, down 50.8 per cent.

Sales of US$625 million for the second quarter fell 1.8 per cent from the prior year period, mainly driven by lower sales in the US.