CORAL GABLES, Fla.--(BUSINESS WIRE)--Fresh Del Monte Produce Inc. reported financial results for the first quarter ended April 1, 2016. The Company reported earnings per diluted share of $1.57 for the first quarter of 2016, compared with earnings per diluted share of $0.80 in the first quarter of 2015. Comparable earnings per diluted share were $1.57 in the first quarter of 2016, compared with comparable earnings per diluted share of $0.83 in the first quarter of 2015. "Our first quarter performance was a great start to the year," said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. "We achieved higher revenue, and stronger earnings growth, while continuing to invest in our future. Our performance was led by increased sales in our other fresh produce and banana businesses, which further validates the diversity of our globally sourced product offerings. We also benefited from progress in advancing our distribution capabilities in North America and Asia as well as contributions from our focus on cost-savings and maximizing operating efficiencies. Our goal, as always, is to continue to strategically position our business to deliver growth and shareholder value over the long-term."
Net sales for the first quarter of 2016 were $1,018.1 million, compared with $1,008.4 million in the first quarter of 2015. The $9.7 million increase in net sales was driven by higher net sales in the Company's other fresh produce and banana business segments.
Gross profit for the first quarter of 2016 was $140.7 million, compared with $100.4 million in the first quarter of 2015. The $40.3 million increase in gross profit was attributable to higher gross profit in all of the Company's business segments, principally due to lower transportation and fruit costs.
Operating income for the first quarter of 2016 was $90.5 million, compared with operating income of $56.3 million in the first quarter of 2015. Comparable operating income was $90.5 million in the first quarter of 2016, compared with comparable operating income of $57.7 million in the first quarter of 2015.
Net income for the first quarter of 2016 was $81.7 million, compared with net income of $42.5 million in the first quarter of 2015. Comparable net income was $81.7 million in the first quarter of 2016, compared with comparable net income of $43.9 million in the first quarter of 2015.
First Quarter 2016 Business Segment Performance
(As reported in business segment data)
Bananas
Net sales for the first quarter of 2016 increased $4.3 million to $458.6 million, compared with $454.3 million in the first quarter of 2015, primarily driven by higher sales volume in the Company's Asia and Middle East regions. Worldwide pricing decreased $0.08, or 1%, to $14.81 per unit, compared with $14.89 per unit in the first quarter of 2015. Volume was 2% higher than the prior year period. Gross profit for the first quarter of 2016 increased $12.7 million to $48.8 million, compared with $36.1 million in the first quarter of 2015. Unit cost was 3% lower than the prior year period.
Other Fresh Produce
Net sales for the first quarter of 2016 increased $16.3 million to $480.9 million, compared with $464.6 million in the first quarter of 2015. The increase in net sales was primarily due to higher sales volume in the Company's fresh-cut, avocado and pineapple product lines. Gross profit for the first quarter of 2016 increased $26.4 million to $77.1 million, compared with gross profit of $50.7 million in the first quarter of 2015.
Gold pineapple - Net sales increased 3% to $125.1 million, compared with the prior year. Volume increased 4%. Pricing was 1% lower. Unit cost was 2% lower.
Fresh-cut - Net sales increased 23% to $116.5 million, compared with the prior year. Volume increased 23%. Pricing was in line with the prior year period. Unit cost was 3% lower.
Non-tropical - Net sales decreased 8% to $82.5 million, compared with the prior year. Volume decreased 13%. Pricing increased 5%. Unit cost was 4% lower.
Avocados - Net sales increased 10% to $44.3 million, compared with the prior year. Volume increased 47%. Pricing decreased 25%. Unit cost was 28% lower.
Prepared Food
Net sales for the first quarter of 2016 decreased $10.9 million to $78.6 million, compared with $89.5 million in the first quarter of 2015. The decrease in net sales was primarily the result of lower sales volume and lower selling prices in the Company's Jordanian poultry business and lower sales volume in the Company's canned pineapple product line. Gross profit for the quarter increased $1.2 million to $14.8 million, compared with $13.6 million in the first quarter of 2015. Full report.
