U.S.: Fresh Del Monte stays the course in Q2
Fresh Del Monte Produce (NYSE: FDP) kept its results steady in the second quarter of 2015, with minor year-on-year increases in sales and net income.
The multinational reported net sales of US$1.134 billion and net income of US$64.5 million, representing less than half a percentage point of growth in both cases.
"We are pleased to report solid second quarter results despite the negative year-over-year exchange rates in Europe and Asia and weather related issues that impacted production for some of our products," chief executive officer Mohammad Abu-Ghazaleh said in a release.
"Our results reflect momentum in our global value-added fresh-cut product line, increased penetration within our existing distribution channels, and flexibility to deliver to markets with the strongest demand.
"We continued to capitalize on health and wellness, and growing convenience trends in the marketplace with new product initiatives and further invested in our global footprint to increase value-added production."
While overall sales were stable, performance varied between the company's different produce groups.
Net sales for bananas were up 2% at US$513.8 million, mainly driven by greater volumes in North America and Asia, combined with improved pricing in the Middle East. However, prices were down 3% overall and gross profit was down US$5.3 million.
Net sales in the 'other fresh produce' category were up 1% at US$523.7 million, but individual product lines in the area registered both highs and lulls.
Sales increased for fresh-cut (16%) and non-tropical (6%) products, while they fell for gold pineapples (-12%), melons (-8%) and tomatoes (-7%).
Lower sales in Fresh Del Monte's Jordanian poultry line led to a sales decline of 11% in the company's prepared food segment, hitting US$96.6 million.