Fresh Del Monte Posts 39% Gross Profit Gains in Q3 Earnings Report
CORAL GABLES, FL – Fresh Del Monte released its Q3 financial report on Tuesday, October 28th, showcasing impressive company growth across the board. Perhaps the biggest highlight from the report was Fresh Del Monte's gross profit numbers, which rose 39% to $73.9 million in Q3 compared to $53 million during Q3 2013. Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer of Fresh Del Monte, was understandably proud of his company's successes.
“We are pleased to report a strong third quarter,” he said. “Our performance was driven by higher sales volume in our banana and other fresh produce business segments and increased worldwide banana selling prices. We focused on maximizing sales to markets with the highest demand for Del Monte® branded products, benefiting from our logistics capabilities to quickly capitalize on market opportunities. As we look forward, we will adhere to our long-term strategic plan to further diversify our product line, expand our distribution channels and presence in new and existing markets, and increase value for our shareholders.”
Some other highlights from the report include:
- A 3% increase in net sales to $884.6 million, compared to $861.1 million from Q3 2013.
- An increase in operating income by $21.9 million to $29.3 million, compared to $7.4 million in the Q3 2013.
- An increase in net income by $13.5 million to $19.9 million, compared to $6.4 million in the Q3 2013.
According to a press release, much of these impressive gains were driven by the strength of Fresh Del Monte's banana business, which enjoyed increased sales volume, higher selling prices, and favorable exchange rates. The company's Q3 2014 net sales for bananas increased 5% to $423.8 million, during the same time that worldwide pricing increased 3% to $14.77/unit. Volume also increased 2% during this period.
The report also noted the strength of the company's pineapple operations, decreased ocean freight and distribution costs and ongoing operational efficiencies as reasons for its success.
As of 1:41 pm ET, Fresh Del Monte's stock is up $1.31 to $30.99, a 4.41% increase.
Congratulations on this excellent financial report, Fresh Del Monte!
