Multinational giant Fresh Del Monte has reported its results for the fourth quarter and full year of 2013, with chief executive Mohammad Abu-Ghazaleh describing it as a 'year of contrast'.
Net sales for the full year increased by US$262.5m to US$3.7bn, up from the US$3.4bn recorded in 2012, while net sales for the fourth quarter of 2013 were US$879.9m, higher than the US$776.9m brought in during the same period last year.
According to Del Monte, the increase in net sales for 2013 and fourth quarter was the result of a strong net sales performance in all of the company's business segments, with solid volume gains over the previous year.
However, the group slipped to a net loss of US$37.3m for the year, compared with net income of US$143.2m in 2012, and operating loss fell to US$30.7m from an operating income of US$161.4m, principally due to lower gross profit, increased selling, general and administrative expenses and increased losses on disposal of property, plant and equipment.
Similarly, the fourth quarter net loss of US$146.8m was well down on the breakeven experienced in the corresponding month of 2012, while operating loss for the four-week period was US$142.8m from a loss of US$2.1m last year.
“2013 was a year of contrast for us, with increased sales and strong progress toward our long-term initiatives tarnished by a disappointing conclusion to the year,” said Abu-Ghazaleh, chairman and CEO.
“During the fourth quarter of 2013 we faced higher input costs and lingering issues in our European market,' he continued. 'We have addressed these conditions by implementing a host of strategic measures to reduce the negative impact on our business. We exited underperforming operations, adjusted our business model in Europe and broadened our asset base.
'Looking forward, based on our expansion into new markets, new distribution channels and new product introductions, I am confident the foundation we have built will enable us to improve our performance and enhance delivery of long-term value for our shareholders,' Abu-Ghazaleh concluded.
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