Posted: June 22, 2012, 3:15 p.m. EDT
Del Monte Corp. of San Francisco reported a 1.7 percent dip in net sales for its fourth quarter ended April 29, 2012, despite 5.4 percent sales growth for its pet food segment. The segment’s operating income for its fourth quarter increased 24.3 percent.
For the quarter, Del Monte posted pet product segment operating income of $92.2 million on net sales of $490.4 million, compared with operating income of $74.2 million on net sales of $465.2 million in the year-ago period.
The sales increase was driven by volume growth in new products, including Nature’s Recipe Grain Free, and pricing actions, offset by volume declines in existing products, according to the company, which attributed the income increase primarily to the pricing actions.
Overall, Del Monte posted operating income of $89.3 million on net sales of $934.6 million for the quarter, compared with an operating loss of $73.5 million on net sales of $951.2 million in the year-ago period.
The 1.7 percent overall sales decline came from an 8.6 percent sales drop in its consumer food products segment, which markets brands including Del Monte, Contadina and S&W.
The year-ago quarter’s loss was attributed primarily to merger related costs; an investor group led by Kohlberg Kravis Roberts & Co., Vestar Capital Partners and Centerview Capital acquired Del Monte Foods Co. on March 8, 2011.
“Our fourth quarter results reflect solid performance from our new pet product launches and savings from productivity initiatives and we are optimistic about our business momentum,” said Dave West, Del Monte’s CEO. “Our recent innovation launches of Meow Mix Tender Centers, Meow Mix Paté Toppers and Nature’s Recipe Grain Free had strong distribution gains.”
For its fiscal 2012, Del Monte’s pet product segment posted net income of $323.2 million on net sales of $1.86 billion, compared with net income of $377.7 million on sales of $1.78 billion.
Overall, Del Monte posted operating income of $370.2 million on net sales of $3.68 for its fiscal 2012, compared with operating income of $339.3 million on net sales of $3.66 million in its fiscal 2011.<HOME>
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