Fresh Del Monte Produce Sees Boost after Mann Packing Acquisition
CORAL GABLES, FL - On the heels of its acquisition of Mann Packing, Fresh Del Monte Produce is already reaping the rewards. Net sales for the first quarter of 2018 were $1.1 billion, compared with $1.03 billion in the first quarter of 2017. The increase in net sales was the result of higher net sales in Del Monte's other fresh produce and banana business segments, partially offset by lower net sales in the company's prepared food business segment.
“Our growth during the first quarter is a testament to our initiatives to strengthen the foundation of our company through diversification to become the world’s leading supplier of healthful, wholesome and convenient fresh and value-added food and beverages,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer, in a press release. “The acquisition of Mann Packing already contributed robust one-month sales growth and profitability in the value-added product line without the implementation of any synergies. Our avocado product line also showed strong results. These are two good examples of our continued commitment to executing our diversification strategy.”
Fresh Del Monte Produce reported its financial results for the first quarter ending March 30, 2018, which showed the following highlights:
- First quarter of 2018: earnings per diluted share of $0.85, compared to $0.90 per share at the same time the previous year
- Gross profit for first quarter of 2018: $106.5 million, compared to $99.1 million last year
- Operating income for first quarter of 2018: $56.5 million, compared to $53.9 million last year
- Comparable operating income for first quarter of 2018: $57.9 million, compared to $51.2 million last year
- Net income for the first quarter of 2018 was $41.5 million, compared to $46.4 million the previous year
- Comparable net income for the first quarter of 2018 was $42.9 million, compared to $43.7 million last year
“We did face a series of external headwinds brought on by unfavorable weather and logistical challenges that hindered our progress. We remain resolute and enthusiastic about future opportunities, especially in our value-added products, with several exciting new direct to consumer ventures and innovative products to emerge during the coming months to further drive diversification,” stated Abu-Ghazaleh.
With this recent acquisition, Fresh Del Monte Produce’s numbers have nowhere to go but up!
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