Del Monte reports net sales of US$776.2 for first-quarter fiscal 2012
Sales drop of 3.5% partially offset by new pet product growth, company says
Del Monte Foods reported net sales of US$776.2 for the three months for fiscal 2012 ended July 31, a 3.5% decrease from US$804.6 million in the first quarter fiscal 2011.
Unit volume declines in both pet products and consumer products drove the decrease, but were partially offset by new product volume growth in pet and the impact of pricing actions, according to the company.
Operating income declined from US$119.4 million in the 2011 period to US$49.3 million for the first three months of fiscal 2012. Adjusted EBITDA declined 31.5% to US$101.2 million compared to US$147.8 million during the same period in fiscal 2011.
Pet products net sales were US$422 million in the first three months of fiscal 2012, a decrease of 1.2% from net sales of US$427.3 million in the prior year period, attributed primarily to unit volume declines. The company's pet products operating income decreased 43.1%, from US$98.7 million in 2011 to US$56.2 million in the first three months of fiscal 2012. The decrease was primarily driven by higher ingredient costs, increased marketing investment to support new product launches and lower unit volumes, though was partially offset by pricing actions. Pet Products Adjusted EBITDA decreased 30.8% from US$107.1 million in first quarter fiscal 2011 to US$74.1 million in the three months ended July 31..