Fruit and vegetable producer Fresh Del Monte has reported 4% year-on-year growth in net sales to $4.4 billion in its financial year 2022.
Net sales increased by 2%, to $1.04 billion, in the fourth quarter compared to the same period last year.
This increase was driven by inflation-justified per unit price increases in both periods, Fresh Del Monte noted.
However, the increase was partially offset by lower sales volume, primarily in its banana and fresh and value-added products segments, and the negative impact of fluctuations in exchange rates.
Mohammad Abu-Ghazaleh, Fresh Del Monte’s chairman and chief executive officer, commented, "Overall we closed out 2022 in a much stronger position than 2021 driven by our commitment to remaining flexible and agile, controlling our costs, leveraging our assets, and optimising customer relationships.
"2022 was a notable year for us as we made progress on several fronts including innovation, sustainability, and strengthening our relationships with customers to work toward profitable incremental sales to expand our product line."
Gross profit for the 2022 financial year amounted to $340.2 million, up from $303.8 million in 2021.
The increase in gross profit was primarily driven by higher gross profit in the company's other products and services segment due to higher net sales of third-party ocean freight services, and the favourable impact of higher per unit sales prices, across all segments.
Adjusted operating income increased to $149.2 million from $111.5 million in the the year before.
The company attributed this growth to higher gross profit and lower selling, general and administrative expenses.
The fresh and value-added unit saw year-on-year net sales increasing by 3% due to inflation driven higher per unit sales prices across all product categories.
The increase in net sales was partially offset by the negative impact of fluctuations in exchange rates in Europe and Asia, and lower net sales of fresh-cut vegetables and avocados as a result of lower sales volume, Fresh Del Monte added.
Adjusted gross profit declined marginally to $183.0 million from $184.9 million in 2021.
The banana division reported a 2% year-on-year increase in net sales, while adjusted gross profit was $120.7 million, up from $109.7 million in 2021.
Other products and services unit reported 45% growth in net sales compared with full-year 2021, mainly due to higher net sales of third-party ocean freight services.
©2023 European Supermarket Magazine – your source for the latest fresh produce news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.