Solid fourth-quarter and year-end for Fresh Del Monte
Solid fourth-quarter and year-end for Fresh Del Monte
Fresh Del Monte Produce Inc., a leading global producer and distributor of high-quality fresh and fresh-cut fruit and vegetables, and a top producer and distributor of prepared fruit, vegetables and other products in Europe, the Middle East and Africa, reported solid financial and operating results for the fourth quarter and year-ended Dec. 31.
Net sales for the 2004 fourth quarter were $818.2 million, compared with $578.7 million for the same period last year. The 41 percent sales increase was due to the inclusion of Del Monte Foods Europe sales of $89 million, higher sales and volumes of tomatoes, gold pineapple, fresh-cut produce and non-tropical fruit, as well as strong banana pricing.
Net sales for the year rose to $2.9 billion from $2.5 billion in 2003. The improvement in net sales was attributed to stronger demand for fresh-cut produce, higher volumes in non-tropical fruit and tomato product lines and the acquisition of Del Monte Foods Europe.
Net income for the 2004 fourth quarter was $19.1 million, or 33 cents per diluted share, compared with $22.8 million, or 40 cents per diluted share, in the fourth quarter of 2003. Fresh Del Monte?s annual net income was $139.2 million, compared with $226.4 million in 2003. Earnings per diluted share were $2.14, excluding a 27 cent per share non-recurring net benefit, compared with $3.65 per diluted share, excluding a 30 cent per share non-recurring net benefit, in 2003. The decrease in net income was principally due to higher commodity costs, and adverse weather conditions.
Gross profit for the 2004 fourth quarter was $67.6 million, compared with gross profit of $46.9 million in the fourth quarter of 2003. The increase in quarterly gross profit was due to the Del Monte Foods Europe acquisition and increased pricing in melons, offset by higher production and fuel costs. Gross profit for the year was $264.7 million, compared with gross profit of $328.2 million in 2003. Significantly higher product procurement, production and commodity costs contributed to the decline in annual gross profit.
Mohammad Abu-Ghazaleh, chairman and chief executive officer, said in a statement, "The year 2004 was full of achievements and progress, as well as challenges. We made two important acquisitions during 2004, thereby expanding our product line and global presence and enhancing our logistical capabilities. In addition, our sales and volumes in many of our products rose during the year. However, we faced several challenges throughout the year, including higher costs for purchased fruit and vegetables, fuel, petroleum-based products, packaging, and fertilizer. In spite of these factors, we are pleased that we were still able to deliver solid earnings for both the fourth quarter and the full year."
The company expects that a number of factors, including higher commodity costs and adverse weather conditions, will continue to present challenges in 2005. Accordingly, the company?s earnings guidance for 2005 is $2.30 to $2.40 per diluted share.
Net sales for the 2004 fourth quarter were $818.2 million, compared with $578.7 million for the same period last year. The 41 percent sales increase was due to the inclusion of Del Monte Foods Europe sales of $89 million, higher sales and volumes of tomatoes, gold pineapple, fresh-cut produce and non-tropical fruit, as well as strong banana pricing.
Net sales for the year rose to $2.9 billion from $2.5 billion in 2003. The improvement in net sales was attributed to stronger demand for fresh-cut produce, higher volumes in non-tropical fruit and tomato product lines and the acquisition of Del Monte Foods Europe.
Net income for the 2004 fourth quarter was $19.1 million, or 33 cents per diluted share, compared with $22.8 million, or 40 cents per diluted share, in the fourth quarter of 2003. Fresh Del Monte?s annual net income was $139.2 million, compared with $226.4 million in 2003. Earnings per diluted share were $2.14, excluding a 27 cent per share non-recurring net benefit, compared with $3.65 per diluted share, excluding a 30 cent per share non-recurring net benefit, in 2003. The decrease in net income was principally due to higher commodity costs, and adverse weather conditions.
Gross profit for the 2004 fourth quarter was $67.6 million, compared with gross profit of $46.9 million in the fourth quarter of 2003. The increase in quarterly gross profit was due to the Del Monte Foods Europe acquisition and increased pricing in melons, offset by higher production and fuel costs. Gross profit for the year was $264.7 million, compared with gross profit of $328.2 million in 2003. Significantly higher product procurement, production and commodity costs contributed to the decline in annual gross profit.
Mohammad Abu-Ghazaleh, chairman and chief executive officer, said in a statement, "The year 2004 was full of achievements and progress, as well as challenges. We made two important acquisitions during 2004, thereby expanding our product line and global presence and enhancing our logistical capabilities. In addition, our sales and volumes in many of our products rose during the year. However, we faced several challenges throughout the year, including higher costs for purchased fruit and vegetables, fuel, petroleum-based products, packaging, and fertilizer. In spite of these factors, we are pleased that we were still able to deliver solid earnings for both the fourth quarter and the full year."
The company expects that a number of factors, including higher commodity costs and adverse weather conditions, will continue to present challenges in 2005. Accordingly, the company?s earnings guidance for 2005 is $2.30 to $2.40 per diluted share.
