Fresh produce firm Fresh Del Monte has posted a 11% decrease in net sales in the second quarter of its financial year, with all the company's business segments seeing a decline.
The company posted net sales of $1.09 billion (€930 million) in the period, compared to $1.24 billion (€1.05 billion) in the corresponding period for 2019, it said in a statement.
'Significant Disruption'
“As a result of significant global disruptions, including lockdowns, closures and quarantines due to the COVID-19 pandemic, Fresh Del Monte Produce went through an unprecedented, turbulent period during the quarter,” commented Mohammad Abu-Ghazaleh, chairman and chief executive.
The company said that the COVID-19 pandemic impact sales by around $32 million in the quarter, in its fresh and value-added products segments, as well as in bananas.
Gross profit for the period fell to $78.7 million, compared with $97.6 million in the corresponding period last year.
The company said that its profit performance was impacted by 'incremental costs', largely arising out of reduced and in its foodservice business, shifting retail demand, mandatory restrictions relating to social distancing, volatile supply and demand conditions and higher ocean freight costs.
This was partially offset, however, by lower production and procurement costs, it said.
Maintaining Focus
“Even with these challenges and the nature of our perishable business, we remained focused on protecting the health and safety of our global team members, and we maintained our business continuity," commented Abu-Ghazaleh.
The company noted that its liquidity and ability to generate positive cash-flows remained strong during the quarter.
"Our transformation is expected to continue in the quarters ahead as we look to improve our asset utilisation around the globe, create efficiencies in our operations and position our company to deliver stronger long-term performance," the CEO added.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
