Fresh Del Monte Reports Third Quarter 2020 Financial Results; Announces the Sale of Assets
- by Lilian Diep
CORAL GABLES, FL - Recently, Fresh Del Monte released its third quarter 2020 financial report, which ended on September 25, 2020. In the report, the company announced a $100 million asset sales program along with growth in its fresh and value-added products sectors.
“We were especially pleased to see an improvement in our fresh and value-added products business segment, through rapid adjustments to all aspects of our business, from farm to customer to meet the challenges caused by the pandemic disruption, particularly to adapt to the restaurant and foodservice markets during the third quarter,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. “Swift implementation of working capital measures led to improved cash flow and our ability to reduce our debt. As a result, we will double our dividends in the fourth quarter of 2020. We also continued to take every precaution to ensure the health and safety of our team members and their families allowing us to maintain the necessary workforce to continue to provide uninterrupted healthy, safe, and convenient products to our customers.”
In the report, the company listed these key figures:
- Net sales for the third quarter of 2020 were $989.7 million
- Gross profit for the third quarter of 2020 was $67.3 million
- Operating income for the third quarter of 2020 was $26.6 million
- Net income attributable to Fresh Del Monte for the third quarter of 2020 was $17.4 million
- Adjusted net income was $16.4 million in the third quarter of 2020 with an adjusted operating income of $25.3 million
Fresh Del Monte noted in the report that the effects of COVID-19 impacted certain parts of its operations, but the company was able to pivot its directions with the sale of multiple assets. Thus, the company was able to streamline its operations to refocus on further growth.
“During the quarter, as part of our recently announced optimization program, we underwent a comprehensive review of all aspects of our business. We made the decision to sell non-strategic and under-utilized assets for a total anticipated cash amount of approximately $100 million, which we expect to achieve over the next 12 to 18 months,” Abu-Ghazaleh added. “These assets consist primarily of underutilized facilities and land across multiple regions. In the meantime, we remain aggressively focused on optimizing our current cost structure, improving our profitability, and prioritizing our capital investments.”
To learn more about Fresh Del Monte’s report, click here.
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