Fresh Del Monte Produce Inc. today reported financial results for the third quarter ended September 30, 2022.
"We delivered solid performance across our business generating strong net sales and profitability despite continued macroeconomic headwinds," said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer.
"We continue to make investments to grow our business focused on technology, product innovation, and diversification, including new higher-margin product offerings in the ready-to-eat and convenience category and an investment in blockchain-driven traceability technology."
Mr. Abu-Ghazaleh added, "Our team’s efforts enabled us to thrive this quarter in the face of wide-range challenges, including persistent inflation, geopolitical risks, and volatility in the fuel market. I remain confident in our growth path grounded on profitable sales, disciplined expense management, digital transformation, and sustainability — all while remaining true to our core mission of high-quality fresh and fresh-cut fruit and vegetables.”
Net sales for the third quarter of 2022 increased $48.7 million, or 5%, compared with the prior-year period. Net sales primarily benefited from inflation-justified price increases. The increase in net sales was partially offset by the negative impact of fluctuations in exchange rates, primarily versus the euro, Japanese yen, Korean won and British pound compared with the prior-year period. The negative impact of fluctuations in exchange rates was partially mitigated by our foreign currency hedges.
Gross profit for the third quarter of 2022 was $88.0 million compared with $48.9 million in the prior-year period driven by increases across all our segments. The increase in gross profit primarily relates to higher consolidated net sales and product mix in our fresh and value-added products segment. The increase was partially offset by higher per unit production and distribution costs, including packaging material, fertilizer, ocean and inland freight, fuel and labor.
Operating income for the third quarter of 2022 was $51.0 million compared with $1.3 million in the prior-year period, and Adjusted operating income(3) was $41.2 million compared with $0.3 million in the prior-year period. The increase in operating income was primarily due to higher gross profit, a $9.9 million one-time benefit related to a reduction in a North America environmental reserve and lower advertising expenses. Adjusted operating income(3) excludes the above-mentioned one-time benefit.
Other expense, net for the third quarter of 2022 was $9.1 million compared with $1.8 million in the prior-year period. The increase in other expense, net is mainly due to higher foreign currency related losses.
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For more information:
Ana Miranda
Fresh Del Monte Produce Inc.
U.S. Executive Offices
241 Sevilla Avenue, 12th Floor
Coral Gables, FL 33134
Tel.: +1 305-520-8433