Fresh Del Monte Produce reports strong fresh, value-added sales
Fresh Del Monte Produce Inc. reported net sales for the third quarter of 2019 were $1.07 billion, in line with $1.069 billion in the third quarter of 2018. The increase in net sales in the fresh and value-added business segment was offset by lower sales in the company's banana business segment, 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 chief executive officer. “Our strategic focus on stabilizing our core business, innovative diversification, and transforming Fresh Del Monte 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.
"Our retail store concept in the U.S. will be coming soon," said Abu-Ghazaleh. "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.”
Gross profit for the third quarter of 2019 was $74.7 million, compared with $52.6 million in the third quarter of 2018. The increase in gross profit was primarily attributable to higher gross profit in all of the company's business segments, principally due to higher selling prices in the company's fresh and value-added and banana business segments. The increase was partially offset by lower sales volume, higher fruit production and procurement costs, as well as the negative impact of unfavorable exchange rates.