Fresh Del Monte posts Q3 loss of US$21.5 million

Mon 12/11/2018 by Richard Wilkinson
Fresh Del Monte reports US$21.9 million loss

Due to “operational challenges” from the first part of 2018, Fresh Del Monte Produce has reported a net loss for the third quarter of US$21.5 million. The company acquired Mann Packing in February and in June recalled some vegetable trays following reports of illnesses. Del Monte posted a profit of US$11.5 million in the third quarter of 2017.

According to a company statement, lower operating income and higher interest expense were only partially offset by lower provision for income taxes. CEO Mohammad Abu-Ghazaleh said, “We delivered a 12% increase in net sales during the third quarter, led by a solid contribution from our recent acquisition of Mann Packing. 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.”

In contrast, net sales for the third quarter (ending on September 28th) climbed to US$1.1 billion. Del Monte said this was due to increased sales of its other fresh produce and prepared food business segments, primarily due to contributions from the Mann Packing business, partially offset by lower net sales in the banana business segment.

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