Del Monte reports second quarter gains for pet products division
Company attributes gains to growth in dry petfood, new products
Del Monte Foods Co. reported second quarter gains for its pet product division, while overall sales declined and overall profits rose.
Del Monte's pet division reported an increase in operating income from US$84.8 million to US$92.7 million for the second quarter of fiscal year 2011, ended October 31. The company's net sales rose from US$422.1 million to US$433.2 million for the second quarter. The company attributed the increase in pet division net sales primarily to strong unit volume growth in dry petfood and pet snacks as well as new product growth. Higher trade spend, which supported dry petfood and new products, negatively impacted sales, according to the company.
Overall, Del Monte Foods reported net income of US$81.1 million on net sales of $940.9 million for the second quarter, a decline from previous net income of US$62.6 million on net sales of US$958.9 million. Del Monte, which recently agreed to a US$4 billion buyout by a group of investors, expects net sales growth for fiscal 2011 of -1% to 1% over fiscal 2010, lower than its previous expectations of 1% to 3%.