Florida-based Fresh Del Monte Produce has turned in a net loss for the third quarter (Q3) of 2018, despite reporting on an increase in sales for the three-month period.
Net loss attributable to the company was US$21.5m for the quarter, compared with net income of US$11.5m in the same period of 2017.
This was, the group said, due to ongoing operational challenges, which meant lower operating income and higher interest expense, although this was partially offset by lower provision for income taxes.
Income fell despite a rise in net sales of 12 per cent, up from US$952.7m in 2017 to US$1.07bn – with increases in Del Monte's other fresh produce and prepared food business segments, primarily due to contributions from the Company’s Mann Packing business, partially offset by lower net sales in the banana business segment.
“We delivered a 12 per cent increase in net sales during the third quarter, led by a solid contribution from our recent acquisition of Mann Packing,” said Mohammad Abu-Ghazaleh, chairman and CEO.
“Our operations continue to recover from previously disclosed challenges earlier in the year," he confirmed. "We benefited from the progress of our diversification strategy, innovation efforts, and global presence while keenly focusing on creating greater efficiencies throughout our organisation.”