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Carl Collen


Wednesday 24th February 2016, 01:09 Melbourne

Profit down at Fresh Del Monte

Group releases its full-year results, with sales up slightly but net profit more than halving when compared with 2014

Profit down at Fresh Del Monte

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US-based Fresh Del Monte has reported on a large fall in net income for the full-year of 2015.

The multinational recorded net income of US$62.4m for the 12-month period, down from US$142.4m in 2014, attributed to US$66.1m of charges related to the write-off of goodwill associated with the company's 2003 acquisition of its tomato and vegetable business in North America, as well as what the group called an "extraordinary industry oversupply" of bananas in the closing months of the year.

Net sales actually climbed slightly, up from US$3.93bn in 2014 to US$4.06bn, driven by higher net sales in Del Monte's other fresh produce and banana business segments.

For the fourth quarter alone, net sales increased US$48.6m to US$977.9m, while the company recorded a net loss of US$73.1m, compared with a net loss of just US$0.4m in the same period of 2014.

"Our strong sales performance in the fourth quarter and throughout 2015 was characterised by the value of our broad product line, extensive supply chain capabilities and investments in expanding our distribution channels and product sourcing,” said Mohammad Abu-Ghazaleh, chairman and chief executive officer.

“The year-over-year growth in our top line shows that we are exceptionally well positioned in the markets," he added. "Our global fresh-cut and avocado product lines continued to drive growth in the fourth quarter. However, our performance in the quarter was negatively impacted by an extraordinary industry oversupply of bananas in the final months of 2015."

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