Fresh Del Monte Produce has seen its stock price fall today (2 August) as the company saw European sales weaken.
Despite rising quarterly and half-year sales and profits across the business, the US fresh produce firm’s share price dropped 2% after it highlighted the impact of the “depressed” fresh produce market in Europe. Fresh Del Monte’s stock stood at $24.13 at 11:34 EST.
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Company chairman and CEO Mohammad Abu-Ghazaleh said the European fresh producer sector had seen “significantly lower banana and pineapple selling prices during the month of June”.
For the quarter ended 1 July, European sales fell 1.9% to $257.1m.
Abu-Ghazaleh also pointed to Fresh Del Monte’s “substantially higher fuel costs” and “continued competitive pressure” in its melon business. He said the company worked “aggressively” through the quarter to restructure the division, a move “which enables us to shift resources to our new, well-received specialty melon programme”.
However, Fresh Del Monte’s overall net sales increased by 3.9% in the second quarter to $1.04bn. Net income rose 66.8% to reach $35.2m. Operating income was up 8.5% to $56m.
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By GlobalDataFor the first half of its financial year, the company’s net income rose 57.7% to reach $57.3m, while net sales rose 3.6% to $2bn.
Click here for the complete statement from Fresh Del Monte.
