Value-added sales are gaining traction for Coral Gables, Fla.-based Fresh Del Monte Produce.
Reporting on third-quarter results Oct. 29, Mohammad Abu-Ghazaleh, chairman and CEO, said in a news release that the company’s strategic focus to become a value-added oriented company is making progress.
Compared with year-ago results, the company reported increases in gross profit, operating income, and net income for the quarter that ended Sept. 27.
“We are emphasizing value-added margin growth in all product lines, generating momentum with global partnerships, introducing trend-forward products, and are opening new state-of-the-art facilities in Mexico and Japan,” he said in the release.
Net sales for the third quarter of 2019 were $1.07 billion, similar to year-ago sales. An increase in net sales in the fresh and value-added business segment was offset by lower sales in the company’s banana business segment, combined with weakening currencies against the U.S. dollar in selling countries, according to the release.
The company reported gross profit for the third quarter was $74.7 million, up from $52.6 million from a year ago. Higher selling prices in the company’s fresh and value-added and banana business segments was partially offset by lower sales volume, higher fruit production and procurement costs, and unfavorable exchange rates, according to the release.
Fresh Del Monte Produce reported that fresh and value-added sales accounted for 61% of total net sales and 72% of gross profit for the third quarter. By way of comparison, bananas accounted for 36% of net sales and 22% of gross profit
Recent additions to Del Monte’s value-added lines include Better Breaks, three plant based microwaveable snacks that the company showcased at the Produce Marketing Association’s Fresh Summit Expo, Oct. 18-19 in Anaheim, Calif.
Del Monte’s purchase of Mann Packing was finalized in March 2018. The $361 million acquisition allows the company to invest more in fresh-cut products. This summer, Del Monte announced it had created a North American New Product Development team to oversee the development of Del Monte and Mann Packing products.
Related articles
Del Monte Fresh details sustainability measures in report
United Fresh recognizes Emanuel Lazopoulos with ‘lifetime’ award
Del Monte’s Better Breaks: quick, convenient and plant-based
