Fresh Del Monte Produce today reported financial results for the second quarter ended June 30, 2017. The Company reported gains in net sales but lower net profit compared to the second quarter of 2016.
Net sales for the second quarter of 2017 were $1,147.1 million, compared with $1,088.6 million in the second quarter of 2016. The increase in net sales was the result of higher net sales in the Company's other fresh produce and banana business segments, partially offset by lower net sales in the Company's prepared food business segment.
“We’re glad to report that Fresh Del Monte achieved strong sales growth during the second quarter," said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer.
"External challenges such as oversupply of bananas in Asia and the Middle East markets, lower sales volume of canned pineapple and lower pineapple concentrate selling prices negatively impacted our overall performance. However, our broad range of products and businesses, and geographic reach helped us mitigate these challenges, while continuing to grow our business. We strongly believe our future has never been brighter."
"Our recently announced joint ventures with Del Monte Pacific Limited are expected to provide us with tremendous potential to rapidly expand our lineup of healthy, convenient, fresh and ready to eat products. Looking forward, we remain confident in our ability to tap future opportunities to drive profitability and shareholder value over the long-term.”
Bananas
Net sales for the second quarter of 2017 increased to $499.5 million, compared with $497.4 million in the second quarter of 2016. Volume was 3% higher than the prior year. Worldwide pricing decreased $0.37, or 2%, to $14.92 per unit, compared with $15.30 per unit in the second quarter of 2016. Gross profit for the second quarter of 2017 decreased to $58.1 million, compared with $66.5 million in the second quarter of 2016. Unit cost was in line with the prior year period.
Other Fresh Produce
Net sales for the second quarter of 2017 increased to $568.1 million, compared with $496.8 million in the second quarter of 2016. The increase in net sales was primarily due to higher net sales in the Company's fresh-cut, avocado and pineapple product lines. Gross profit for the second quarter of 2017 decreased to $55.0 million, compared with gross profit of $59.9 million in the second quarter of 2016.
Gold pineapple - Net sales increased 9% to $134.8 million, compared with the prior year. Volume increased 23%. Pricing was 11% lower. Unit cost was 4% lower.
Fresh-cut - Net sales increased 25% to $168.7 million, compared with the prior year. Volume increased 23%. Pricing was 1% higher. Unit cost was 6% higher.
Avocados - Net sales increased 48% to $85.4 million, compared with the prior year. Volume decreased 6%. Pricing increased 58%. Unit cost was 63% higher.
Non-tropical - Net sales decreased 10% to $78.3 million, compared with the prior year. Volume decreased 15%. Pricing increased 6%. Unit cost was 4% higher.
source: businesswire.com