US: Good profit for Del Monte Fresh despite sales decline
On July 31, Fresh Del Monte reported second-quarter earnings per share of $1.01, a significant jump of 31.2% from the year-ago earnings of 77 cents. It also surpassed the Zacks Consensus Estimate at 91 cents.
However, net sales slumped 7.9% year over year to $957.6 million. Net sales in the Banana segment dipped 8.8% to $424.9 million, while Other Fresh Produce sales were down 4.8% to $453.8 million. Net sales at the Prepared Food segment slipped 18.7% to $78.9 million.
Despite the sales decline, the company managed to improve gross profit by 0.8% to $103.7 million with the help of higher sales prices in the Other Fresh Produce segment, operational advancements and lower ocean freight costs. Gross margin of 10.8% compared favorably with the year-ago margin of 9.9%. The company’s operating income jumped 26.4% to $70.8 million on account of improved gross profit, lower asset impairment and other charges, and lesser selling, general and administrative expenses.
Source: forbes.com
