Global producer and distributor Fresh Del Monte has announced its financial results for the fourth quarter of 2022, with the firm calling the period its “best in recent history”.

The company’s net sales increased by 2% year-on-year to $22.7 million. For the full fiscal year, net sales increased $190.3 million, a 4% rise.

In both periods, the increase in net sales was driven by inflation-justified per unit price increases. 

“The fourth quarter of 2022 has been our best-performing fourth quarter in recent history, led by strong net sales and strong margins,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and Chief Executive Officer. 

Gross profit for the fourth quarter of 2022 was $81.7 million compared with $39.8 million in the prior-year period. 

The increase in gross profit was a result of the higher per unit selling prices, across all segments. 

This partially offset the continuing inflationary and other cost pressures, which resulted in higher per unit production and distribution costs, including packaging materials, fertilizers, inland and ocean freight, labor and fuel.

For the full fiscal year 2022, gross profit was $340.2 million, an almost 12% rise year-on-year.

“2022 was a notable year for us as we made progress on several fronts including innovation, sustainability, and strengthening our relationships with customers to work toward profitable incremental sales to expand our product line,”  Abu-Ghazaleh added.

For fresh and value added products, gross profit for full fiscal year 2022 reached $2.8 million - a 2% increase. 

Despite higher net sales, numbers for this category were negatively impacted by higher per unit production and distribution costs, including packaging materials, fertilizers, and ocean and inland freight, across most product categories as a result of ongoing cost pressures. 

In addition, lack of availability of third-party shipping capacity for certain shipping routes negatively impacted non-tropical fruit gross profit.