Fresh Del Monte Produce posts Q1 net income of $46.4mn
Del Monte shares have decreased slightly since the beginning of the year but have increased 40 percent in the last 12 months.
Net sales for the first quarter of 2017 were $1,032.4 million, compared with $1,018.1 million in the first quarter of 2016. The increase in net sales was primarily the result of higher net sales in the Company's other fresh produce and prepared food business segments, partially offset by lower net sales in the Company's banana business segment.
Gross profit for the first quarter of 2017 was $99.1 million, compared with $140.7 million in the first quarter of 2016. The decrease in gross profit was principally due to higher fruit costs in the Company's other fresh produce business segment, lower selling prices in the banana business segment and unfavorable exchange rates, partially offset by higher sales volume.
Net income attributable to Fresh Del Monte Produce Inc. for the first quarter of 2017 was $46.4 million, compared with net income of $81.7 million in the first quarter of 2016. Comparable net income was $43.7 million in the first quarter of 2017, compared with comparable net income of $81.3 million in the first quarter of 2016.
Bananas
Net sales for the first quarter of 2017 decreased to $445.1 million, compared with $458.6 million in the first quarter of 2016, due to lower net sales in all of the Company's regions. Volume was 1% higher than the prior year. Worldwide pricing decreased $0.63, or 4%, to $14.18 per unit, compared with $14.81 per unit in the first quarter of 2016. Gross profit for the first quarter of 2017 decreased to $35.0 million, compared with $48.8 million in the first quarter of 2016. Unit cost was 1% lower than the prior year period.
Other Fresh Produce
Net sales for the first quarter of 2017 increased to $506.2 million, compared with $480.9 million in the first quarter of 2016. The increase in net sales was primarily due to higher net sales in the Company's avocado and fresh-cut product lines. Gross profit for the first quarter of 2017 decreased to $48.4 million, compared with gross profit of $77.1 million in the first quarter of 2016.
Gold pineapple
Net sales decreased 11% to $110.9 million, compared with the prior year. Volume decreased 8%. Pricing was 4% lower. Unit cost was in line with the prior year period.
Fresh-cut
Net sales increased 21% to $141.4 million, compared with the prior year. Volume increased 20%. Pricing was 1% higher. Unit cost was 2% higher.
Avocados
Net sales increased 59% to $70.6 million, compared with the prior year. Volume increased 4%. Pricing increased 53%. Unit cost was 54% higher.
Non-tropical
Net sales decreased 6% to $78.0 million, compared with the prior year. Volume increased 6%. Pricing decreased 11%. Unit costs was 13% higher.
Prepared Food
Net sales for the first quarter of 2017 increased to $81.1 million, compared with $78.6 million in the first quarter of 2016, primarily driven by higher net sales in the Company's processed pineapple product lines. Gross profit for the quarter increased to $15.7 million, compared with $14.8 million in the first quarter of 2016.
“We are very pleased with the progress we made in the first quarter, achieving key objectives that will enhance our diversified business platform,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer.
“During the quarter, we also introduced new products, added customers in our global fresh-cut business, and increased market share in our avocado product line. We faced a number of headwinds during the quarter, including a weak banana market, lower pineapple volume, and a poor Chilean season that constrained our performance. As we move forward, we remain optimistic that investing in our diverse global operations, implementing product innovations, and continuing to instill cost-savings and efficiencies in all of our businesses, will deliver long-term value to our shareholders.”
For more information:
Christine Cannella
Fresh Del Monte Produce Inc.
Tel: +1 305-520-8433