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DMPL achieved sales of $446 million but still posted net loss (12 Sep 2013)
Del Monte Foods, Inc. (DMFI) attained sales of $339.5 million and posted a net loss of $21.9 million due to earlier announced acquisition-related expenses. These costs include higher interest expenses from a long-term loan to acquire DMFI and short-term bridge financing of DMPL, which will be refinanced with an equity offering.
The planned ordinary share public offering will be followed by a perpetual preference share offering and, thereafter, a rights offer.
Group borrowings will then be reduced by approximately $520 million, which will significantly deleverage DMPL’s balance sheet as it pays down its short term bridge financing. Group EBITDA before acquisition expenses and non-recurring expenses was $21.5 million and is expected to further strengthen in FY 2015.
“While first quarter sales decreased by 1% versus the prior year period, this was a marked improvement from the 17% decline during the Transition Period of February to April 2014, where sales were affected by inherited higher product pricing and changes to product labels,” said Nils Lommerin, Chief Executive Officer of Del Monte Foods, Inc.
(source: PinoyInvestor)
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