Fresh Del Monte Produce Inc. Reports First Quarter 2019 Financial Results
Source Fresh Del Monte Produce Inc.
April 30, 2019 06:00 AM EDT
CORAL GABLES, Fla.--(BUSINESS WIRE)--Fresh Del Monte Produce Inc. (NYSE: FDP) today reported financial results for the first quarter ended March 29, 2019. The Company reported earnings per diluted share of $0.74 for the first quarter of 2019, compared with earnings per diluted share of $0.85 in the first quarter of 2018. The Company reported adjusted earnings per diluted share of $0.48 in the first quarter of 2019, compared with adjusted earnings per diluted share of $0.89 in the first quarter of 2018.
The Company announced that following an evaluation of the Company’s management and operating structure, it has realigned its operating segments to reflect the internal management reporting used by the Company’s management team and recent realignment of members of the Company's senior management team, to allocate resources and assess performance. The Company has realigned its other fresh produce and prepared food segments into one segment titled fresh and value-added products. Fresh and value-added products include pineapples, melons, non-tropical fruit (including grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries and kiwis), other fruit and vegetables, avocados, fresh-cut fruit and vegetables, prepared fruit and vegetables, juices, other beverages, prepared meals and snacks. The Company’s banana business will remain in the banana segment. The Company's other businesses will now comprise a segment titled other products and services. Other products and services includes poultry and meat products, plastic products and third-party freight services.
"The performance-improving initiatives we put in place in 2018 to rationalize our non-tropical, tomato and melon operations delivered margin improvements during the first quarter of 2019," said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. "The unfavorable weather and logistical challenges of 2018 have not had an impact and we appear to be tracking towards a normal performance for these two factors for the first half of 2019. However, we still face headwinds with higher costs in our fresh and value-added business segment. We continue to focus on all areas of our operations to ensure that we have the right cost structure to support our diverse product line and our vertically-integrated platform, and to expand our market reach through new and existing distribution channels to promote our global growth and brand awareness.”
Net sales for the first quarter of 2019 were $1,154.2 million, compared with $1,106.1 million in the first quarter of 2018. Net sales, compared with the prior year period, increased in the Company's fresh and value-added business segment, primarily due to contributions from the Company's Mann Packing business. The increase was partially offset by lower net sales in the Company's banana business segment and the impact of unfavorable exchange rates in Europe and Asia.
Gross profit for the first quarter of 2019 was $93.3 million, compared with $106.5 million in the first quarter of 2018. The decrease in gross profit was the result of lower profitability in the Company's banana business segment, primarily due to normalized industry banana supplies across the markets. The decrease was partially offset by higher profitability in the Company's fresh and value-added business segment, principally due to the rationalization and restructuring the Company did in 2018.
