U.S.: Fresh Del Monte profit plunged in 2015
Fresh Del Monte Produce's (NYSE: FDP) profit more than halved in 2015, driven by impairment charges for an earlier acquisition and price pressures from an "extraordinary industry oversupply of bananas" in the final months of the year.
In its full year financial results today, the company said its net income fell 56% to US$62.4 million.
The figure may have been more positive if it weren't for US$66.1 million in charges related to write-offs from Del Monte's 2003 acquisition of its North American tomato and vegetable business.
Nonetheless, chief executive officer Mohammad Abu-Ghazaleh was pleased with the results as comparable results were down only slightly and net sales were up.
"The year-over-year growth in our top line shows that we are exceptionally well positioned in the markets," Abu Ghazaleh said.
"Our global fresh-cut and avocado product lines continued to drive growth in the fourth quarter. However, our performance in the quarter was negatively impacted by an extraordinary industry oversupply of bananas in the final months of 2015."
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