...November 9, 2023 We expect revenue growth and profitability improvement in fiscal 2024, however a weaker macroeconomic environment could pose risks. We forecast Del Monte Foods Inc. will have about 4% revenue growth in fiscal 2024 driven by increased contribution from new products, promotional support and continued distribution gains in the higher-growth club, convenience, and dollar store channels. We expect profitability to improve in the second half of fiscal 2024 as Del Monte begins to sell lower-cost inventory from the fiscal 2024 packing season after depleting higher-cost fiscal 2023 inventory. Price increases to offset cost inflation, ongoing portfolio repositioning toward branded products, and higher operating efficiencies should also support higher profitability. However, a slower volume growth trajectory driven by consumers purchasing lesser quantities to stretch their food dollars could curtail growth and depress profitability. We also believe Del Monte's exposure to significant...
