Fresh Del Monte Produce today (1 August) booked a fall in first-half profits, despite rising sales, amid pressure on banana prices and an increase in the cost of goods sold.
The fresh fruit and vegetable supplier’s net income for the six months ended June dropped 35% to US$115.6m. The company’s operating income fell 32.3% to $133.4m. Fresh Del Monte’s net sales grew 3.4% to $2.18bn.
Go deeper with GlobalData
The group provided details of the performance of its business units in the second quarter, pointing to higher banana, avocado and pineapple sales but lower sales of prepared food.
It said its gross profit came under pressure in the second quarter from lower selling prices in the company’s banana business, higher fruit costs for its “other fresh produce” division and unfavorable exchange rates.
Mohammad Abu-Ghazaleh, chairman and CEO, said: “We’re glad to report that Fresh Del Monte achieved strong sales growth during the second quarter. We strongly believe our future has never been brighter.”
See Also:
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataCEO Abu-Ghazaleh added: “Our recently announced joint ventures with Del Monte Pacific are expected to provide us with tremendous potential to rapidly expand our line-up of healthy, convenient, fresh and ready to eat products.”
In the second quarter, Fresh Del Monte’s net profits slid 28% to $69.2m from a year earlier, which also said operating income fell 25% to $79.5m. Fresh Del Monte’s net sales rose 5.3% to $1.15bn.
