Fresh Del Monte Produce posted a bigger-than-expected loss in the fourth quarter, prompting shares to slide in New York yesterday (18 February).
The company racked up a loss of $146m or $0.36 a share in the three months to the end of December, missing consensus expectations of a loss of $0.16 a share. In the fourth quarter of last year, Fresh Del Monte booked a loss of $1.2m.
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The group’s stock price fell more than 5% as a result to close at $25.39 yesterday.
According to Janney Montgomery Scott analyst Jonathan Feeney, the profit miss reflected “higher than expected SG&A”, which “outweighed better than expected gross profit”. Gross profit in the quarter dipped to $32.9m, down from $38.5m last year.
The fourth-quarter loss weighed on the group’s full year result and Del Monte’s 2013 full-year net loss totalled $36.8m compared to an income of $145m in the comparable period of last year.
Fresh Del Monte was, however, able to report an improved top-line performance. Fourth-quarter sales rise to to $879.9m from $776.9m and full-year sales increased to $3.68bn from $3.42bn.
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