Fresh Del Monte Produce Reports Second Quarter 2017 Financial Results
Source Fresh Del Monte
CORAL GABLES, Fla.--(BUSINESS WIRE)--Fresh Del Monte Produce Inc. (NYSE: FDP) today reported financial results for the second quarter ended June 30, 2017. The Company reported earnings per diluted share of $1.36 for the second quarter 2017, compared with earnings per diluted share of $1.86 in the second quarter of 2016. Comparable earnings per diluted share were $1.40 in the second quarter, compared with comparable earnings per diluted share of $1.75 in the second quarter of 2016.
“We’re glad to report that Fresh Del Monte achieved strong sales growth during the second quarter," said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. "External challenges such as oversupply of bananas in Asia and the Middle East markets, lower sales volume of canned pineapple and lower pineapple concentrate selling prices negatively impacted our overall performance. However, our broad range of products and businesses, and geographic reach helped us mitigate these challenges, while continuing to grow our business. We strongly believe our future has never been brighter. Our recently announced joint ventures with Del Monte Pacific Limited are expected to provide us with tremendous potential to rapidly expand our lineup of healthy, convenient, fresh and ready to eat products. Looking forward, we remain confident in our ability to tap future opportunities to drive profitability and shareholder value over the long-term.”
Net sales for the second quarter of 2017 were $1,147.1 million, compared with $1,088.6 million in the second quarter of 2016. The increase in net sales was the result of higher net sales in the Company's other fresh produce and banana business segments, partially offset by lower net sales in the Company's prepared food business segment.
Gross profit for the second quarter of 2017 was $123.2 million, compared with $145.4 million in the second quarter of 2016. The decrease in gross profit was principally due to lower net sales in the Company's prepared food business segment, lower selling prices in the Company's banana business segment, higher fruit cost in the Company's other fresh produce business segment and unfavorable exchange rates.
Operating income for the second quarter of 2017 was $79.5 million, compared with operating income of $106.7 million in the second quarter of 2016. Comparable operating income was $81.6 million in the second quarter of 2017, compared with comparable operating income of $100.9 million in the second quarter of 2016. The decrease was primarily due to lower gross profit.
Net income attributable to Fresh Del Monte Produce Inc. for the second quarter of 2017 was $69.2 million, compared with net income attributable to Fresh Del Monte Produce Inc. of $96.2 million in the second quarter of 2016. Comparable net income was $71.3 million in the second quarter of 2017, compared with comparable net income of $90.4 million in the second quarter of 2016. The decrease was primarily due to lower operating income.
