Fresh Del Monte Produce Inc. Announces Fourth Quarter and Full Year 2020 Financial Results
- by Peggy Packer
CORAL GABLES, FL - Optimization and transformation is the name of the game for Fresh Del Monte Produce. The company recently announced its financial results for the fourth quarter and fiscal year 2020, and we at ANUK were enthused by the report. Fresh Del Monte completed 40 percent of its $100 million asset sale optimization program as it continues making progress on its transformation initiatives.
“In 2020, we benefited from actions taken as part of our $100 million asset sale optimization program, as well as making progress on our five-year strategic initiatives to become a value-added and more diversified company,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. “The emphasis on selling non-strategic, underutilized assets and strengthening our core businesses led to improved cash flow and reduced debt. These efforts, along with our versatile, vertically integrated platform, helped us mitigate the effects of disruptions, including weather and the COVID-19 pandemic. We are also proud of the progress we made in the following areas in the midst of a global pandemic: we placed in service four of our six new container vessels that we expect will increase our efficiency and reduce our carbon footprint; we opened a new state-of-the-art Mann Packing facility in California, merging four facilities into one; and opened a new state-of-the-art distribution and fresh-cut facility in Yokohama, Japan. Also, we benefited from our new avocado packing facility that opened in December 2019.”
In addition to these exciting initiatives, Fresh Del Monte plans to reduce its long-term debt by $45 million as compared to the end of 2019. Though the COVID-19 pandemic took a toll on the entire industry, the company still managed to pursue growth during fiscal year 2020.
Some of the report’s financial details are as follows:
- Net sales for the full year 2020 were $4,202.3 million, compared with $4,489.0 million in 2019
- Gross profit for the full year 2020 was $250.9 million, compared with gross profit of $306.4 million in 2019
- Operating income for the full year 2020 was $76.5 million, compared with an operating income of $114.1 million in 2019
- Net income for the full year 2020 was $49.2 million, compared with a net income of $66.5 million in 2019
“We are optimistic that, with an improved balance sheet and our strategic focus on value-added products to respond to the shift in delivery channels driven by the trend towards a ‘stay-at-home economy,’ we will continue to see gains in our performance during 2021. Our goal, as always, is to deliver shareholder value over the long-term,” Abu-Ghazaleh added.
For more on how Fresh Del Monte is optimizing and transforming its business, keep checking in with us at AndNowUKnow.