CORAL GLOBAL, FL - Fresh Del Monte Produce has reported its Q4 and full year 2015 financial results for the fourth quarter and year ended January 1, showing increased net sales, but falling net profits due mainly to what the company says was a global oversupply of bananas.
"Our strong sales performance in the fourth quarter and throughout 2015 was characterized by the value of our broad product line, extensive supply chain capabilities and investments in expanding our distribution channels and product sourcing,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer in a statement. “Our global fresh-cut and avocado product lines continued to drive growth in the fourth quarter. However, our performance in the quarter was negatively impacted by an extraordinary industry oversupply of bananas in the final months of 2015."
Net sales for the year increased to $4.06 billion, compared with $3.93 billion in 2014. Net sales for the fourth quarter increased $48.6 million to $977.9 million, compared with $929.3 million in the prior year's fourth quarter. Expanding market reach for avocados was a substantial part of this increase, with avocado sales for the quarter going up 27% to $39.1 million.
Gross profit for the year decreased $342.3 million, compared with gross profit of $364.8 million in 2014. Gross profit for the fourth quarter was $44.6 million, compared with $62.7 million in the fourth quarter of 2014.
Abu-Ghazaleh also commented on what seems to be an explosion of banana-related drug smuggling and its impact on the company throughout the year.
“Unfortunately we see a lot of drug smuggling in banana ships and pineapple containers,” said Abu-Ghazaleh during a conference call with investors. “It seems that bananas [are] becoming a very easy conduit for this trade and the banana becomes irrelevant compared to the other cargo inside. So I think what really is distorting this business is not supply and demand, it’s other reasons that we don’t have any control of.”
Other highlights from Fresh Del Monte’s Q4 and full year 2015 financial report include:
- Earnings per diluted share was $1.17, compared with earnings per diluted share of $2.53 for 2014.
- Net loss per share was $1.39 in the fourth quarter of 2015, compared with a net loss per share of $0.01 in the fourth quarter of 2014.
- Operating income for the year was $91.0 million, compared with an operating income of $173.5 million in 2014.
- Operating loss for the fourth quarter was $73.3 million, compared with an operating income of $3.7 million in the fourth quarter of 2014.
- Net income for the year was $62.4 million, compared with a net income of $142.4 million in 2014.
- Comparable net loss was $6.0 million, compared with comparable net income of $11.2 million in the fourth quarter of 2014.
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