Tuesday, Fresh Del Monte Produce Inc. (FDP) a fresh and fresh-cut fruit and vegetable producer, reported an increase in profit for the second quarter, reflecting a rise in sales led by the banana business segment, and lower asset impairment and other charges. Earnings for the quarter came in mush ahead of analysts' consensus.
Fresh Del Monte's net income attributable to shareholders for the second quarter increased to $52.2 million or $0.82 per share from $41.9 million or $0.66 per share in the same quarter of the previous year. After adjusting for asset impairment and other charges, earnings per share increased to $1.11 from $0.87 in the previous year.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.70 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased to $978.4 million from $972.2 million a year ago, led by improved performance in banana business segment, primarily driven by higher worldwide banana selling prices, along with higher sales in the company's melon and gold pineapple product categories. Three analysts had a consensus revenue estimate of $975.07 million for the quarter.
By geography, North American net sales were 464.5 million in the second quarter, compared to $443.2 million in the same quarter of the previous year. Net sales from Europe declined to $283.2 million from $299.4 million last year. Asian net sales increased to $72.6 million from $75.6 million a year ago, while Middle East net sales declined to $72.6 million from $75.6 million in the corresponding quarter a year ago.
By segment, net sales from banana increased 8% to $774.6 million from $721.6 million on 7% increase in worldwide pricing to $15.14 per unit. Net sales from Other Fresh Produce segment were $865.1 million, compared to $863.5 million. Prepared Food segment reported net sales of $162.5 million, compared to $216.4 million last year. Net sales from Other Products and Services segment declined to $55.9 million from $65.6 million a year ago.
Asset impairment and other charges for the quarter declined to $1.1 million from $11.6 million last year.
For the six-month period, net income attributable to shareholders declined to $87.1 million or $1.37 per share from $105.5 million or $1.66 per share in the same period of the previous year. Net sales declined to $1.86 billion from $1.87 billion in the similar period last year.
FDP is currently trading at $27.71, up 3.39 or 17.55%, on a volume of 926K shares on the NYSE.
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