CORAL GABLES, Fla.--(BUSINESS WIRE)--Fresh Del Monte Produce Inc. reported financial results for the third quarter ended September 30, 2016. The Company reported earnings per diluted share of $0.68 for the third quarter, compared with earnings per diluted share of $0.54 in the third quarter of 2015. Comparable earnings per diluted share were $1.17 in the third quarter, compared with comparable earnings per diluted share of $0.56 in the third quarter of 2015.
“We are very pleased with our strong financial performance in the third quarter of 2016,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. “Our performance demonstrates the strength of our diversification strategy and the results of the efficiency improvements and cost-control initiatives we put in place over the past couple of years to increase profitability and position ourselves for sustainable growth. Increased sales in our avocado, fresh-cut and pineapple product lines collectively drove our financial performance during the quarter, along with improved global banana selling prices, and lower commodity costs. Given the strength of our business model and our focus on continuous performance improvements, we believe we are well positioned to deliver value to Fresh Del Monte’s shareholders over the long-term.”
Net sales for the third quarter of 2016 were $950.2 million, compared with $936.1 million in the third quarter of 2015. The $14.1 million increase in net sales was the result of higher net sales in the Company's other fresh produce and prepared food business segments, partially offset by lower sales volume of bananas in North America and Europe.
Gross profit for the third quarter of 2016 was $118.8 million, compared with $83.3 million in the third quarter of 2015. The increase in gross profit was attributable to higher gross profit in all of the Company's business segments, principally due to higher selling prices in the Company's banana business in Asia, along with lower transportation and fruit costs.
Operating income for the third quarter of 2016 was $44.1 million, compared with operating income of $34.4 million in the third quarter of 2015. Comparable operating income was $69.8 million in the third quarter of 2016, compared with comparable operating income of $35.5 million in the third quarter of 2015. The increase was primarily due to higher gross profit, partially offset by higher asset impairments and other charges, net.
Net income for the third quarter of 2016 was $35.2 million, compared with net income of $28.5 million in the third quarter of 2015. Comparable net income was $60.9 million in the third quarter of 2016, compared with comparable net income of $29.6 million in the third quarter of 2015.
Bananas
Net sales for the third quarter of 2016 were in line with the prior year period. Volume was 2% lower than the prior year. Worldwide pricing increased $0.29, or 2%, to $14.93 per unit, compared with $14.64 per unit in the third quarter of 2015. Gross profit for the third quarter of 2016 increased $19.0 million to $39.6 million, compared with $20.6 million in the third quarter of 2015. Unit cost was 3% lower than the prior year period.
Other Fresh Produce
Net sales for the third quarter of 2016 increased $13.3 million to $433.6 million, compared with $420.3 million in the third quarter of 2015. The increase in net sales was primarily due to higher net sales in the Company's avocado, fresh-cut and pineapple product lines. Gross profit for the third quarter of 2016 increased $13.1 million to $62.0 million, compared with gross profit of $48.9 million in the third quarter of 2015.
Gold pineapple - Net sales increased 3% to $123.0 million, compared with the prior year. Volume decreased 3%. Pricing was 6% higher. Unit cost was 3% lower.
Fresh-cut - Net sales increased 7% to $134.6 million, compared with the prior year. Volume increased 8%. Pricing was 1% lower. Unit cost was 6% lower.
Avocados - Net sales increased 47% to $67.1 million, compared with the prior year. Volume increased 5%. Pricing increased 41%. Unit cost was 46% higher.
Non-tropical - Net sales decreased 14% to $44.6 million, compared with the prior year. Volume decreased 15%. Pricing and unit costs were in line with the prior year period.
Prepared Food
Net sales for the third quarter of 2016 increased to $92.2 million, compared with $90.6 million in the third quarter of 2015. Gross profit for the quarter increased to $17.2 million, compared with $13.8 million in the third quarter of 2015. Full report.
