Fresh Del Monte has posted a 51% year-on-year jump in net profit for the first financial quarter, as the company continues to focus more heavily on efficiency and optimization of resources.
Net profit rose from $25.8 million to $39 million in the three months to March 31.
That increase came despite a small drop in net sales from $1.17 billion to $1.13 billion, which the company attributes to lower per unit selling prices of avocados, lower volumes in the fresh and value-added products segment, and negative fluctuations in exchange rates, primarily in Europe and Asia.
Partially offsetting the decrease in net sales were higher per unit selling prices across most other products and higher banana sales volume.
Gross profit for the first quarter of 2023 was $97 million compared with $89.8 million in the prior-year period. This was driven by higher per unit selling prices across most product categories combined with lower distribution costs. Partially offsetting the increase in gross profit were higher production and procurement costs across most product categories as well as higher ocean freight costs.
“Our first quarter results of 2023 are a testament to our focus on profitability as we continue to commit to efficiency and optimization of resources. Our gross profit and margin were strong, which reflects our ongoing strategic efforts to further increase our profitability,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and CEO.
“During the quarter, as part of our asset optimization plan, we finalized the sale of three underutilized properties. We are laser-focused on being flexible and agile and on identifying market opportunities that will increase shareholder value.
