Transaction fees on US purchase drags down earnings at Del Monte Pacific

Philippines-based mainboard listed Del Monte Pacific has reported a 13.4 per cent drop in third quarter net profit to US$77.2 million (S$9 million).

This was despite an 8.9 per cent increase in revenue to US$127 million for the three months to Sept 30.

Net margin slid 1.4 percentage points to 5.7 per cent.

Base net profit of US$8.9 million was 7 per cent higher than the same period last year but after incurring one-off transaction fees of US$1.7 million for the proposed acquisition of Del Monte Foods' consumer food business in the US, net profit was came down.

The group expects that the transaction fees would be about US$6 million for the year, which would impact net earnings.

However, the base operating income is expected to be higher than last year.

Earnings per share slumped to 0.56 US cent from 0.77 US cent previously while net asset value per share slipped to 17.73 US cents compared to 23.2 US cents as at Dec 31.