On June 14, Del Monte Foods
- For more on Del Monte's earnings, get the scoop here.
- Sales rose by 17.6% to $940.1 million, supported by the acquisitions of Meow Mix and Milk-Bone, coupled with pricing and growth from new products.
- In spite of the growth in the top line, net profit declined by 11.8% to $36.8 million, due to increased selling and distribution expenses.
- The company expects sales growth of 5% to 7% for Q1 2008 as well as fiscal 2008, led by growth across the board, in particular from Meow Mix and Milk-Bone.
- Del Monte is rated two stars by the Motley Fool CAPS community, on the same level as Kraft
(NYSE:KFT) and lagging three-star stock Heinz(NYSE:HNZ) . Join CAPS for free today to see what investors are saying.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q4 2007 |
Q4 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$940.1 |
$799.2 |
17.6% |
|
Net Profit* |
$36.8 |
$41.7 |
(11.8%) |
|
EPS* |
$0.18 |
$0.21 |
(14.3%) |
|
Diluted Shares |
205.0 |
202.9 |
1.1% |
Get back to basics with the income statement.
Margin Checkup
|
Q4 2007 |
Q4 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
25.2% |
25.5% |
(0.3) |
|
Operating Margin |
9.4% |
10.9% |
(1.5) |
|
Net Margin |
3.9% |
5.2% |
(1.3) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$13.0 |
$459.9 |
(97.2%) |
|
Accounts Rec. |
$261.1 |
$237.8 |
9.8% |
|
Inventory |
$809.9 |
$764.2 |
6.0% |
|
Liabilities |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Accounts Payable* |
$508.7 |
$450.9 |
12.8% |
|
Long-Term Debt |
$1,951.9 |
$1,242.5 |
57.1% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$230.1 |
$261.2 |
(11.9%) |
|
Capital Expenditures |
$95.0 |
$69.1 |
37.5% |
|
Free Cash Flow |
$135.1 |
$192.1 |
(29.7%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
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