Fresh Del Monte overcomes challenges with higher profits in Q2
The company’s total net sales were down 7.8% at US$957.6 million, but profitability was higher.
Earnings per diluted share jumped to US$0.99 from US$0.59 in the second quarter last year, with net income hitting US$57.2 million compared to US$35.3 million.
Chairman and chief executive officer Mohammad Abu-Ghazaleh, said the earnings growth reflected the company’s strategic initiatives in a “challenging economic” environment.
“The strength of our operations, logistics flexibility, prudent product supply management, and our expanded global customer base were key contributors to our performance.
“Moving forward, we we remain focused on the bottom line, long-term growth and our established cost savings program to increase shareholder value.”
Net sales of other fresh produce dropped 4.6% year-on-year to US$453.8 million.
The company said the net sales decline was partially due to rationalization of its tomato and melon product lines and lower gold pineapple volumes. Pineapple net sales decreased by 7% to US$144.4 million, while melon net sales dropped by 14% to US$36.1 million.
Gross profits for the second quarter rose to US$116.4 million compared with US$102.9 million in the second quarter of 2011, primarily due to higher selling prices in other fresh produce business, operational improvements and lower ocean freight costs.