Del Monte Profit Falls 79%
Del Monte Foods Co.'s fiscal second-quarter earnings fell 79% on expenses tied to its takeover and weakness in its consumer products segment, though revenue grew.</br></br>The company makes pet foods and food pantry staples for the U.S. retail market, with brands including Meow Mix and Kibbles 'n Bits for pets, and Del Monte and Contadina brands in the food market.</br></br>"While the macro environment remained challenging and input cost inflation was high, we delivered strong top-line results," Chief Executive Dave West said, adding the lag between price realization and input cost inflation hurt the bottom line.</br></br>In March, the company was acquired by an investor group led by funds affiliated with Kohlberg Kravis Roberts & Co. LP, Vestar Capital Partners and Centerview Capital LP.</br></br>For the quarter ended Oct. 30, Del Monte Foods reported a profit of $17.2 million, down from $81.1 million a year earlier. Sales rose 5.7% to $994.3 million. The latest period included $32.2 million in expenses tied to the takeover.