Higher costs weighed on Fresh Del Montes profitability

Higher costs weighed on Fresh Del Monte's profitability

  • Q2 net income rises but down for H1
  • Costs weigh on operating income
  • Net sales flat in second quarter

Fresh Del Monte Produce today (28 July) booked higher second-quarter earnings but the rise was not enough to prevent profits falling for the first half of 2015 as a whole.

The US-based group posted net income of US$65.9m for the second quarter to 26 June, compared to $65.4m a year earlier.

Fresh Del Monte's bottom line was helped by foreign exchange gains compared to forex losses in the second quarter of 2014.

However, the company generated net income of $121.5m for the first six months of the year. In the first half of 2014, Fresh Del Monte ran up net income $110.1m.

Fresh Del Monte saw its operating income fall in the second quarter and in the first half. Operating earnings were hit by an increase in the cost of goods sold in both periods, while Fresh Del Monte's sales growth slowed in the second quarter.

Second-quarter operating income reached $73.6m, versus $75.3m a year earlier.

For the first half, operating income reached $129.9m, against $140.5 for the first six months of 2014.

Fresh Del Monte saw its net sales hit $1.13bn in the second quarter, in line with what it filed a year earlier.

In the first half of 2015, Fresh Del Monte generated net sales of $2.14bn, up from $2.11bn in the corresponding period a year earlier.