Del Monte Foods Inc. reported increases of net sales and operating income for its pet product division for the third quarter and first nine months of fiscal year 2010.

The company reported pet product sales of $468.8 million for the third quarter ended Jan. 31, compared to $433 million in the year-ago period. Del Monte attributed the increase primarily to strong unit volume growth from existing products, mostly in the dry dog food and pet snacks categories. Pricing actions in fiscal year 2009 also benefitted the top line. These gains were partially offset by increased trade spending, the company reported.

The pet product segment’s operating income increased 19.3 percent to $91.5 million in the third quarter of 2010, compared to $76.7 million in the year-ago period.

The strength of the top line, significantly lower costs (primarily from productivity savings, lower pet product ingredient costs and lower transportation-related costs) and a positive mix were partially offset by a more-than-three-times marketing investment related to advertising campaigns across the core pet brands. Core pet brands include Milk-Bone, Kibbles ‘n Bits, Meow Mix and Pup-Peroni.

For the first nine months of fiscal year 2010, the company reported pet product sales of $1.3 billion, compared to $1.2 billion in the year-ago period. Pet product operating income increased to $279 million from $138 million.

Overall, Del Monte posted net income of $59.4 million on net sales $1 billion for the third quarter, compared to net income of $60.5 million on net sales of $942.3 million in the year-ago period. For the first nine months, the company reported net income of $180.6 million on net sales of $2.8 billion, compared to net income of $100.8 million on net sales of $2.6 billion in the year-ago period. <HOME>