Canned fruit producer Del Monte Pacific Ltd. registered a narrower net loss $2.2 million in the third quarter of fiscal year covering the period November 2014 to January 2015 from $6.4 million year-on-year.
Del Monte said acquisition-related expenses to hampered the company’s profitability.
Del Monte said in a disclosure to the stock exchange third-quarter sales reached $637.6 million, including $511 million from recently-acquired Del Monte Foods Inc.
Del Monte posted a net loss of $23.9 million for the nine-month period ending Jan. 31, 2015, a reversal from a year-ago profit of $6.5 million.
The group incurred higher interest expense as a result of the long-term loan to acquire DMFI and the short-term bridge financing.
Del Monte will repay approximately $150 million of short-term bridge financing using the proceeds from the recently-concluded right offering and extended $350 million worth of short-term bridge financing for up to two years.
“We are encouraged by the strong support of our shareholders to the rights offer which was oversubscribed. Deleveraging DMPL’s balance sheet and undertaking an international offering of perpetual securities when market conditions improve remain a key priority,” Del Monte chief executive and managing director Joselito Campos Jr.
“We look forward to sustaining our growth in the coming quarters, as we execute against proven strategies and new growth driven initiatives,” he added.
DMFI chief executive Nils Lommerin said the company was on track to deliver future growth.