Fresh Del Monte Produce Inc. (NYSE: FDP) today reported financial results for the second quarter ended June 28, 2019. The Company reported earnings per diluted share of $0.78 for the second quarter of 2019, compared with a loss per share of $0.16 in the second quarter of 2018. Adjusted earnings per diluted share were $0.69 in the second quarter of 2019, compared with adjusted earnings per diluted share of $0.14 in the second quarter of 2018.
"Our stronger financial performance during the second quarter of 2019 signals that our recent strategic shift towards becoming a value-added and more diversified Company is the right direction for Fresh Del Monte,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer.
“We believe that our movement away from being a volume based business helped us navigate the challenges of adverse weather and low industry volumes far better than we would have in the past. Rather than struggle against less-than-ideal market conditions, we are focused on ways to position Fresh Del Monte for further growth opportunities that we believe will drive profitability, and increase shareholder value over the long-term.”
Net sales for the second quarter of 2019 were $1,239.4 million, compared with $1,272.4 million in the second quarter of 2018. Net sales, compared with the prior year period, decreased in the Company's banana and fresh and value-added business segments, primarily due to lower sales volume and the weakening of currencies against the U.S. dollar in selling countries.
Gross profit for the second quarter of 2019 was $96.3 million, compared with $78.3 million in the second quarter of 2018. The increase in gross profit was the result of higher profitability in all of the Company's business segments, primarily due to higher selling prices of bananas in Europe and Asia, and higher selling prices in the fresh and value-added business segment. The increase was partially offset by increased fruit production and procurement, and ocean freight costs as well as the negative impact of unfavorable exchange rates.
Operating income for the second quarter of 2019 was $57.2 million, compared with operating income of $13.8 million in the second quarter of 2018. The increase in operating income was primarily the result of higher gross profit, lower selling, general and administrative expenses and lower asset impairment and other charges, net. Adjusted operating income was $52.9 million in the second quarter of 2019, compared with adjusted operating income of $28.6 million in the second quarter of 2018.
Net income attributable to Fresh Del Monte Produce Inc. for the second quarter of 2019 was $38.1 million, compared with net loss attributable to Fresh Del Monte Produce Inc. of $7.9 million in the second quarter of 2018. Adjusted net income was $33.8 million in the second quarter of 2019, compared with adjusted net income of $6.9 million in the second quarter of 2018. The change was primarily the result of higher operating income.
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