Fresh Del Monte's 2020 sales and income impacted by pandemic
Fresh Del Monte has posted lower sales and net income year-on-year for 2020 as a result of the Covid-19 pandemic, but the company is hopeful it will see performance gains in 2021.
Net sales for the full year in 2020 were $4.2 billion, compared with $4.5 billion in 2019, due to lower net sales in all of the company's business segments.
Meanwhile, net income was $49.2 million, compared with $66.5 million in 2019.
The company said the pandemic impacted net sales during 2020 by an estimated $303.6 million in the company's fresh and value-added and banana business segments.
“In 2020, we benefited from actions taken as part of our $100 million asset sale optimization program, as well as making progress on our five-year strategic initiatives to become a value-added and more diversified Company,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer.
“The emphasis on selling non-strategic, underutilized assets, and strengthening our core businesses led to improved cash flow and reduced debt. These efforts along with our versatile, vertically-integrated platform helped us mitigate the effects of disruptions, including weather and the COVID-19 pandemic."
He added that the company is proud of the progress it has made in the following areas in the midst of a global pandemic - opening a new Mann Packing facility in California that merges four facilities into one, opening a new distribution and fresh-cut facility in Yokohama, Japan, and opening a new avocado packing facility in December 2019.
"We are optimistic that with an improved balance sheet, and our strategic focus on value-added products to respond to the shift in delivery channels driven by the trend towards a ‘stay-at-home economy’ we will continue to see gains in our performance during 2021. Our goal, as always, is to deliver shareholder value over the long-term,” Abu-Ghazaleh said.