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Fresh Produce

Fresh Del Monte Produce Reports 'Strong' Second Quarter

Fresh Del Monte has reported that net sales for the second quarter of 2022 increased by $70.3 million, or 6%, in the second quarter of its financial year.

In a statement the company noted that it delivered strong net sales during the period, marking the fifth consecutive quarter of net sales growth compared with the prior-year periods.

The fruit and vegetable producer's net sales 'benefited from inflation-justified price increases'.

'Uncertain Environments'

Mohammad Abu-Ghazaleh, chairman and chief executive officer said that the company "continues to operate in one of the most volatile and uncertain macroeconomic environments in recent history."

"As a result, the cost of product sold increased by $100 million, driven by broad-based inflationary, supply chain, and logistical headwinds," he added.

"Despite these headwinds, we generated positive earnings — all while maintaining our debt balance in line with last year, generating strong cash flow from operations and continuing our dividend payout."

Inflation Impact 

Net sales benefited from 'inflation-justified' price increases, during the period.

Partially offsetting the increase was the negative impact of fluctuations in exchange rates, primarily versus the Japanese yen and euro compared with the prior-year period, the company noted.

Looking Ahead

"As we move forward, I am confident in our team's dedication to drive profitable sales," Abu-Ghazaleh, said.

"We plan to do that by focusing on our sustainable growth strategy and delivering against its key elements — organic expansion, product innovation, investments in technology, best-in-class customer relationships and sustainability."

© 2022 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. For more fresh news, click here. Click sign up to subscribe to Checkout.

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