Fresh Del Monte has released its financial results for what proved to be a difficult second quarter (Q2) of the year, turning in a net loss of US$7.9m for the three-month period, down from a net gain of US$69.8m the previous year.
While quarterly net sales rose, to US$1.27bn from US$1.14bn in 2017, a number of factors negatively impacted the group's results, according to chairman and CEO Mohammad Abu-Ghazaleh.
“Uncontrollable factors led by congestion, delays and inclement weather at our loading ports in Central America, substantially lower banana selling prices in Europe, an oversupply of pineapples in North America, continued tightening of the transportation market, and higher commodity costs adversely affected our overall performance," he confimed. "Looking ahead, we remain firmly focused and committed to investing in and further diversifying our global operations while driving profitable growth over the long-term.”
In the company's banana segment, net sales for the second quarter decreased to US$457.8m from US$499.5m last year. Volume was 6 per cent lower than the prior year, while worldwide pricing decreased US$0.40, or 3 per cent, to US$14.52 per unit.
Net sales in the Other Fresh Produce sector fincreased to US$721m, compared with US$568.1m in the second quarter of 2017.
The increase in net sales was primarily due to higher net sales in the Company's fresh-cut, vegetable and avocado product lines.