Company Press Release – Fresh Del Monte Produce Inc. reported financial results for the third quarter ended September 28, 2018. The Company reported a loss per diluted share of $0.44 for the third quarter 2018, compared with earnings per diluted share of $0.23 in the third quarter of 2017. The Company reported an adjusted net loss per diluted share of $0.14 in the third quarter of 2018, compared with adjusted earnings per diluted share of $0.24 in the third quarter of 2017.
“We delivered a 12% 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 Chief Executive Officer. “Our operations continue to recover from previously disclosed challenges earlier in the year. We benefited from the progress of our diversification strategy, innovation efforts, and global presence while keenly focusing on creating greater efficiencies throughout our organization.”
Net sales for the third quarter of 2018 were $1,069.5 million, compared with $952.7 million in the third quarter of 2017. Net sales, compared with the prior year period, increased in the Company’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 Company’s banana business segment.
Gross profit for the third quarter of 2018 was $52.6 million, compared with $58.3 million in the third quarter of 2017. The decrease in gross profit was the result of lower gross profit in the Company’s other fresh and prepared food business segments, principally due to lower selling prices in the Company’s other fresh produce business segment and higher ocean freight and production costs. The decrease in gross profit was partially offset by higher selling prices in the Company’s banana business segment, along with favorable exchange rates.
Operating loss for the third quarter of 2018 was $11.3 million, compared with operating income of $16.7 million in the third quarter of 2017. Adjusted operating income was $3.2 million in the third quarter of 2018, compared with adjusted operating income of $17.1 million in the third quarter of 2017. The decrease was primarily due to higher asset impairment and other charges, net; and higher selling, general and administrative expenses as a result of the acquisition of Mann Packing.
Net loss attributable to Fresh Del Monte Produce Inc. for the third quarter of 2018 was $21.5 million, compared with net income attributable to Fresh Del Monte Produce Inc. of $11.5 million in the third quarter of 2017. Adjusted net loss was $7.0 million in the third quarter of 2018, compared with adjusted net income of $11.9 million in the third quarter of 2017. The change was primarily the result of lower operating income and higher interest expense, partially offset by lower provision for income taxes.
Contact: Christine Cannella, Assistant Vice President, Investor Relations, 305-520-8433.
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