Fresh Del Monte Produce's Mohammad Abu-Ghazaleh Discusses Macroeconomics in Third Quarter 2021 Financial Results
CORAL GABLES, FL - Fresh Del Monte Produce proves that a well-laid strategy is key to withstanding challenges as it releases its third quarter 2021 results, showing positive movement in its net sales. Despite supply chain hurdles and the ongoing pandemic, the fresh purveyor announced that net sales increased by $15.1 million from the year prior and that, through its perseverance, it is looking toward further growth in areas impacted by the current climate.
“While we continue to operate in one of the most challenging macroeconomic environments in recent history, impacted by inflationary and cost pressures across our supply chain, we remain focused on growth by managing our business for the long term and on continuing to provide reliable, quality service to our customers,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. “In terms of seasonality, the second half of the year is typically more challenging due to industry-wide excess supply and shifts in demand toward seasonal fruits. During the third quarter, we continued to experience significantly higher input cost and labor shortages, which impacted our margins and profitability. To offset this impact, we are implementing inflation-justified price increases in an effort to maintain our continuous supply and service levels.”
Although the third quarter, ending October 1, 2021, saw dips in some aspects of the company’s financials, growth for the first nine months of the year occurred in several categories.
According to a press release, these highlights include:
- Net sales for the third quarter of 2021 increased to $1.0 billion compared with $989.7 million in the prior-year period. Net sales for the first nine months of 2021 increased to $3.23 billion compared with $3.2 billion in the prior-year period
- Gross profit for the first nine months of 2021 increased to $264.0 million compared with $214.5 million in the prior-year period
- FDP net income for the first nine months of 2021 was $91.2 million compared with $48.3 million in the prior-year period, corresponding Diluted EPS was $1.91 compared with $1.01 in the prior-year period
- Adjusted EBITDA for the first nine months of 2021 was $192.0 million in the first nine months of 2021 compared with $165.5 million in the prior-year period
As the financial year progresses, Fresh Del Monte plans to utilize its industry knowledge and strategic moves to overcome ongoing challenges faced by the fresh produce industry at large while contributing to further company expansion.
“As we move forward, we believe that our recent capital investments in the automation of our production facilities, further leveraging of our vertical integration, such as the recent addition of 6 new refrigerated container vessels to our fleet, optimization and consolidation of our operations, and product rationalization will prove to be advantageous by putting us in a stronger, more agile position,” added Abu-Ghazaleh.
Fresh Del Monte’s third quarter results can be found in full here.
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