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Del Monte Q2 profit back in the black on one-off expenses a year ago
FOOD and beverage company Del Monte posted a net profit of US$8.4 million for the second quarter ended Oct 31, a reversal of the loss of US$2.8 million from a year ago on the back of one-off expenses of US$13.1 million related to its underperforming vegetable business.
Turnover for the quarter fell 11 per cent to US$556.3 million, mainly due to the planned divestiture of the Sager Creek vegetable business in September 2017 and lower sales in the US.
Earnings per share stood at 0.18 US cent, up from a loss of 0.32 US cent previously.
No dividend was declared for the quarter.
In its outlook, Del Monte said that it faces headwinds due to shifts in consumer demographics, shifts in the way American consumers are eating and shopping, as well as shifts in consumer preferences.
It plans to focus on business segments which are “on-trend” and will rationalise non-profitable businesses, in particular the non-branded segment. It will also invest in a multi-year restructuring project for its operations and supply chain footprint to more efficiently support its commercial strategy.
It will also review its manufacturing and distribution footprint in the US to improve operational efficiency, further reduce costs and increase margins, added the group.