Fresh Del Monte Produce Inc. (NYSE:FDP), one of the world’s largest producers and marketers of fresh and fresh-cut fruit, vegetables and other produce, yesterday announced financial results for the second quarter ended June 29, 2001.
Fresh Del Monte reported net income of $41.5 million, or $0.77 per diluted share, in the second quarter of 2001, compared with net income of $17.2 million, or $0.32 per diluted share, in the second quarter of 2000. Net sales for the second quarter of 2001 were $541.0 million, compared with $516.2 million for the same period last year. The increase in net income and net sales for the second quarter of 2001 represents Fresh Del Monte’s success with its aggressive product expansion and diversification strategies.
Net income for the first six months of 2001 was $82.6 million, or $1.53 per diluted share, compared with net income for the same period last year of $55.7 million, or $1.04 per diluted share. The improvement in the Company’s net income was a result of strong pricing on pineapples, melons and deciduous fruit. Net sales for the first six months of 2001 were $1,075.3 million, compared with $1,052.3 million for the same period last year. The increase in net sales was primarily attributed to the Company’s expanding presence in the fresh-cut business. Unfavorable foreign exchange impacted the Company’s net sales by approximately $25.0 million for the first six months of 2001.
The Company’s gross profit for the second quarter of 2001 was $82.7 million, versus a gross profit of $48.3 million for the second quarter of 2000. Gross profit for the six months ended June 29, 2001 was $166.7 compared with $119.6 for the same period last year. The significant increase in second quarter gross profit was a direct result of improved pricing on all fresh produce, combined with reduced ocean freight costs. Operating income for the second quarter of 2001 was $59.6 million, compared with $29.3 million for the second quarter of 2000. Operating income for the six months ended June 29, 2001 increased 52 percent to $119.8 million, from $78.9 million a year earlier.
“We are very pleased to report strong financial and operating performance for the second quarter,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and Chief Executive Officer. “These excellent results demonstrate our ability to keep pace with increasing demand for our fresh produce and from our ongoing ocean freight cost-reduction programs. As we move forward, we will continue to leverage our strong brand identity, diversified product line, commitment to quality and service and powerful market position to build sales momentum. We expect our hard work to continue to pay off, particularly now that conditions are improving in the fresh produce industry.”
This press release contains certain forward-looking statements regarding the intents, beliefs or current expectations of the Company or its officers with respect to various matters. These forward-looking statements are based on information currently available to the Company and the Company assumes no obligation to update these statements. It is important to note that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The Company’s actual results may differ materially from those in the forward-looking statements as a result of various important factors, including those described under the caption “Key Information – Risk Factors” in Fresh Del Monte Produce Inc.’s Form 20-F for the year ended December 29, 2000.
This release and other press releases are available on the Company’s web site www.freshdelmonte.com.
Fresh Del Monte Produce Inc. and Subsidiaries
Condensed Statements of Income
(U.S. dollars in millions, except per share data)
Quarter ended Six months ended
June 29, June 30, June 29, June 30,
2001 2000 2001 2000
——– ——– ——– ——–
Net sales $541.0 $516.2 $1,075.3 $1,052.3
Gross profit 82.7 48.3 166.7 119.6
Operating income 59.6 29.3 119.8 78.9
Net income $ 41.5 $ 17.2 $ 82.6 $ 55.7
Net income per share:
Basic $ 0.77 $ 0.32 $ 1.54 $ 1.04
Diluted $ 0.77 $ 0.32 $ 1.53 $ 1.04
Weighted average number of ordinary shares outstanding:
Basic 53,765,781 53,763,600 53,764,691 53,763,600
Diluted 54,049,521 53,763,600 53,906,560 53,765,166