The fourth quarter of 2022 saw increases in sales and profits for Coral Gables, Fla.-based Fresh Del Monte Produce Inc.
The company has reported financial results for the fourth quarter and the full fiscal year that ended Dec. 30.
“The fourth quarter of 2022 has been our best-performing fourth quarter in recent history, led by strong net sales and strong margins,” Mohammad Abu-Ghazaleh, Fresh Del Monte’s chairman and CEO, said in a news release. “Overall we closed out 2022 in a much stronger position than 2021 driven by our commitment to remaining flexible and agile, controlling our costs, leveraging our assets, and optimizing customer relationships. 2022 was a notable year for us as we made progress on several fronts including innovation, sustainability, and strengthening our relationships with customers to work toward profitable incremental sales to expand our product line.”
Net sales for the fourth quarter of 2022 increased $22.7 million, or 2%, compared with the prior-year period, the release said. For the full fiscal year, net sales increased $190.3 million, or 4%, compared with the prior-year period.
In both periods, the increase in net sales was driven by inflation-justified per unit price increases, the company said. The increase was partially offset by lower sales volume, primarily in banana and fresh and value-added products segments, and the negative impact of fluctuations in exchange rates.
Gross profit for the fourth quarter of 2022 was $81.7 million, compared with $39.8 million in the prior-year period, the release said. The increase in gross profit was a result of the higher per unit selling prices across all segments. The increase in selling prices partially offset continuing inflationary and other cost pressures, which resulted in higher per unit production and distribution costs, including packaging materials, fertilizers, inland and ocean freight, labor and fuel.
For the full fiscal year 2022, gross profit was $340.2 million, compared with $303.8 million in the prior-year period, the company said.
The increase in gross profit was primarily driven by higher gross profit in other products and services segments as a result of higher net sales of third-party ocean freight services and the favorable impact of higher per unit sales prices across all segments.
Partially offsetting the higher gross profit, the release said, was the negative impact of fluctuations in exchange rates and higher per unit production and distribution cost, including costs of packaging materials, fertilizers, ocean and inland freight, fuel and labor resulting from global supply chain, logistics and inflationary cost pressures.
