Del Monte Net Boosted by Pet Products Demand

10 Dec 2012 --- Del Monte Foods today reported net sales in the second quarter fiscal 2013 of $1,009.7 million compared to $994.3 million in the second quarter fiscal 2012, an increase of 1.5%.

--- Del Monte Foods has reported net sales in the second quarter fiscal 2013 of $1,009.7 million compared to $994.3 million in the second quarter fiscal 2012, an increase of 1.5%. Pet new product volumes and list pricing actions net of trade spend drove the increase. Existing product declines in both Pet and Consumer partially offset the increase.

Operating income declined 1.8% from $107.1 million in the prior year period to $105.2 million. The decrease was primarily driven by increased marketing and operating costs. This was partially offset by list pricing actions net of trade spend and lower G&A.
 
Adjusted EBITDA increased 1.1% to $160.7 million compared to $158.9 million in the prior year period. The drivers of Adjusted EBITDA were similar to those of operating income noted above. In addition, the cash impact of hedging activity drove the increase in Adjusted EBITDA. Gains and losses on economic hedging positions are recorded as other (income) expense. For cash flow hedges, the effective portion of gains and losses is deferred in equity and recognized as part of cost of products sold in the appropriate period. The cash impact of all hedging activities is reflected in Corporate Adjusted EBITDA. In calculating Adjusted EBITDA, the adjustment for cash benefits from economic hedge positions is calculated pursuant to the Company's 7.625% Notes Indenture and credit agreements.
 
The Company remains committed to long-term brand building in both Pet and Consumer, said Dave West, CEO of Del Monte Foods. In November, the Company launched a national integrated marketing campaign to support the iconic Del Monte brand, highlighting the brands vitality and nutritional appeal. Also, we continue to support new Pet Products such as Meow Mix Tender Centers, Pup-Peroni Mix-Stix, and Milo's Kitchen Chicken Grillers Chicken Recipe through increased marketing investment.
 
Pet Products net sales were $497.0 million, an increase of 5.8% from net sales of $469.6 million in the prior year period. The increase in Pet Products net sales was driven by new product volume growth, primarily in dry cat food and pet snacks. List pricing actions net of trade spend also positively contributed to net sales.
 
Pet Products operating income increased 3.4% from $79.5 million in the second quarter fiscal 2012 to $82.2 million in the second quarter fiscal 2013. The increase was primarily due to list pricing actions net of trade spend partially offset by higher marketing and operating costs. Pet Products Adjusted EBITDA declined from $100.5 million in the second quarter fiscal 2012 to $99.9 million in the second quarter fiscal 2013, or 0.6%.
 
Consumer Products net sales were $512.7 million, a decline of 2.3% from net sales of $524.7 million in the prior year period. The decline in Consumer Products net sales was driven by unit volume declines in existing products (retail Tomato) due to a planned shift in promotional activities and category softness.
 
Consumer Products operating income declined 18.0% from $51.6 million in the second quarter fiscal 2012 to $42.3 million in the second quarter fiscal 2013. The decline was primarily driven by the negative impact of the topline and higher marketing costs to support the Del Monte brand revitalization.

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Food Ingredients News

Firmenich launches Natural and Clean Label platform as traceability evolution at major flavor houses accelerates

11 Jun 2018 --- Firmenich, the largest privately held flavor and fragrance company in the world, has launched its Natural and Clean Label platform to create “great tasting, natural and traceable food and beverage experiences.” Combining its mastery of taste and naturals, with its world-class science and consumer understanding, Firmenich is focused on creating the most authentic flavors. Committed to full traceability, Firmenich is going far beyond today’s labeling requirements to provide its customers and their consumers with information they can understand and trust.

Food Ingredients News

Firmenich and Nelixia form partnership for natural oils in Central America

07 Jun 2018 --- Firmenich and Nelixia have announced a strategic partnership to accelerate their footprint in natural ingredients across Central America. With Firmenich’s investment, they will significantly expand Nelixia’s high-quality and ethically-sourced raw materials portfolio. Founded in Guatemala nearly a decade ago, Nelixia is renowned for producing the highest quality Cardamom, Peru Balsam and Styrax essential oils, which are also 100 percent carbon neutral and traceable.

Food Ingredients News

Convenience factor (Part 2): Plant-based opportunities for easy eating occasions

17 May 2018 --- Health-minded consumers have been particularly keen to embrace a vegan way of life and therefore inspire product development in the prepared meals space. The trend has not gone unnoticed in the UK on the retailer front, the number of those cutting back on animal products and following a plant-based diet is set to increase by 10 percent this year, according to Tesco.

Food Ingredients News

Sidel: Liquid dairy packaging should turn to PET

10 May 2018 --- Liquid packaging specialist Sidel have advocated for the liquid dairy industry to switch to PET packaging at this year’s Global Dairy Innovation Summit. FoodIngredientsFirst speaks to Naima Boutroy, Global Packaging Technical support leader at Sidel, about the suggested switch regarding marketing, cost-effectiveness, flexible production and response from the liquid dairy community.

Packaging & Technology News

Taghleef rides the circular economy with sustainable, recyclable packaging solutions at Anuga Foodtec 2018

27 Mar 2018 --- Taghleef Industries showcased their approach to modern, sustainable, flexible packaging and positioning themselves firmly as within a circular economy at Anuga FoodTec 2018. The show had a reported record-breaking number of visitors (50,000) when held in Cologne, Germany last week: an 11 percent increase from 2017. The show also attracted visitors from over 152 countries and comprised of 1,700 exhibitors.

More Articles