Fresh Del Monte swings to profit in "strong" Q3
Fresh Del Monte Produce Inc. (NYSE: FDP) has posted "strong" financial results for the third financial quarter, with net income swinging to black.
Net income for the three months ended Sept. 27 was US$18.1m, compared to a loss of US$21.5m the previous year.
Meanwhile, gross profit was US$74.7m compared with US$52.6m. Fresh Del Monte attributed this rise to higher selling prices in its fresh and value-added and banana business segments. The increase was partially offset by lower sales volume, higher fruit production and procurement costs, and unfavorable exchange rates.
Net sales for the quarter were US$1.07bn, which is in line with the previous year. Net sales increased in the fresh and value-added business. But they were offset by lower banana sales and weakening currencies against the U.S. dollar in selling countries.
“Positive trends continue for Fresh Del Monte with a strong financial performance in the third quarter of 2019,” said Mohammad Abu-Ghazaleh, chairman and CEO.
He said the company's strategic focus on stabilizing the core business, innovative diversification, and transformation to a value-added company has been building throughout 2019.
"We are emphasizing value-added margin growth in all product lines, generating momentum with global partnerships, introducing trend-forward products, and are opening new state-of-the-art facilities in Mexico and Japan," he said.
"Our retail store concept in the U.S. will be coming soon. We extended our credit facility to 2024.
"We believe that these results, coupled with increasing demand for healthy, fresh and convenient foods, have given Fresh Del Monte a strong competitive advantage in the marketplace and a solid position from which to pursue our vision of inspiring healthy lifestyles.”