Lower banana sales are recorded in the second quarter while there are strong margin improvements in the fresh and value-added product segments
Fresh Del Monte has reported on lower year-on-year net sales during the second quarter (Q2) of 2024.
According to the group, net sales for the period stood at US$1.14bn compared with US$1.18bn in 2023, primarily due to lower banana net sales, driven by lower sales volume and lower per unit selling prices for bananas.
The decrease was partially offset by an increase in net sales in the fresh and value-added products segment driven by higher per unit selling prices, Del Monte said.
Gross profit was US$113.2 million, down from US$116.8m in the prior-year period, due to lower net sales, higher per unit production and procurement costs.
These were partly driven by the negative impact of increased weather-related events, mainly high temperatures and low rainfall, in production areas in Central America and the Philippines, as well as the negative impact of fluctuations in exchange rates partially offset by lower ocean freight costs and higher per unit selling prices in the fresh and value-added products segment.
Net income attributable to Del Monte for the second quarter of 2024 was US$53.6m, rising from the US$47.7m recorded in the prior-year period, and adjusted net income was US$50.9m compared with US$46.2m in Q2 2023.
“We are pleased to see our growth strategy and company focus yielding positive results, in the fresh and value-added products segment, where we achieved strong margin improvement during the second quarter of 2024,” said Fresh Del Monte chairman and CEO Mohammad Abu-Ghazaleh.
”We see pineapple, fresh-cut fruit, avocados, and value-added products as core strengths – with consumers appreciating the innovation, convenience, and taste.”
For the first half of 2024, Del Monte saw net sales fell to US$2.25bn from US$2.31bn in 2023, while net income attributable to the company slid to US$79.7m from US$86.7m.
