Aided by higher prices for bananas and value-added items, Fresh Del Monte Produce reported stronger earnings for the second quarter of 2019 compared with a year ago.
Net income attributable to Fresh Del Monte Produce Inc. for the second quarter of 2019 was $38.1 million, compared with the net loss attributable to Fresh Del Monte Produce Inc. of $7.9 million in the second quarter of 2018, according to a news release.
“Our stronger financial performance during the second quarter of 2019 signals that our recent strategic shift towards becoming a value-added and more diversified company is the right direction for Fresh Del Monte,” Mohammad Abu-Ghazaleh, chairman and CEO of the company, said the release.
Abu-Ghazaleh said Del Monte was moving away from being a volume-based business, which he said has helped its performance.
“Rather than struggle against less-than-ideal market conditions, we are focused on ways to position Fresh Del Monte for further growth opportunities that we believe will drive profitability, and increase shareholder value over the long-term.”
The company reported net sales for the second quarter of 2019 were $1.24 billion, compared with $1,27 billion in the second quarter of 2018. Net sales decreased compared with a year ago for banana and fresh and value-added business segments, which the company attributed mostly to lower volume and the weakening of currencies against the U.S. dollar in selling countries.
Gross profit for the second quarter of 2019 was $96.3 million, up from $78.3 million in the second quarter of 2018, according to the release.
The rise in gross profit, according to the release, was linked to higher profitability in all of the company’s business segments. Higher selling prices of bananas in Europe and Asia, combined with increased selling prices in the fresh and value-added business segment, helped boost profit, according to the release.
