Fresh Del Monte Releases Q2 Report, Sees Boosted Profits
- by Laura Hillen
CORAL GABLES, FL – Fresh Del Monte Produce Inc. has reported its financial results for its 2016 Q2 which ended on July 1. The company reported a large increase to its gross profits when compared to last year’s second quarter, rising from $114 to $145.4 million.
“We are pleased with our performance in the second quarter,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. “We continued to see strong growth in our fresh-cut and avocado product lines. We achieved higher selling prices in our pineapple and banana business segments, and we benefited from lower input costs and cost-reduction initiatives that directly improved our bottom-line performance.”
According to a press release, Fresh Del Monte attributed its higher gross profit to higher gross profit in all of the company’s business segments, combine with lower costs for transportation, and banana production and procurement.
The company also reported an increase to its earnings per diluted share when compared to last year, from $1.21 to $1.86. Fresh Del Monte’s comparable earnings per diluted share also rose from last year’s Q2 reporting of $1.18 to $1.75.
“We also continued to invest in our diversification strategy and advanced our global business platform during the quarter,” continued Mohammad Abu-Ghazaleh. “Our investment in diversifying our products and geographies over the years resulted in solid second quarter results, despite weather issues which negatively affected sales volume in several of our product lines.”
Other reported highlights to the company’s 2016 Q2 report are as follows, when compared to last year’s reporting:
- Net income increased from $64.5 million to $96.2 million
- Comparable Net income increased to $90.4 million from $63.0 million
- Operating income increased from $73.6 million to $106.7 million
- Comparable operating income increased from $72.1 million to $100.9 million
- Total debt decreased from 254.2 million to $192.4 million
Although the company saw a decrease to its net sales from the approximate $1.1 billion reported last year to around $1 billion, Fresh Del Monte stated that this resulted from lower sales volume in its banana business and other fresh produce segments from inclement weather and unfavorable exchange rates.
Since reporting its Q2 results, the company’s stock generally remained on the rise. As of August 2, 2016, at 1:07 PM (PST), Fresh Del Monte’s stock had risen by 2.34% to $57.68. At the previously mentioned time, the company’s price to earning ratio was 29.88.
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