Fresh Del Monte Q3 Profit Surges - Update

(RTTNews) - Fresh Del Monte Produce Inc. (FDP) Tuesday reported a surge in profit for the third quarter, driven largely by higher sales and prices for bananas.

Coral Gables, Florida-based Fresh Del Monte's third-quarter profit rose to $19.9 million or $0.35 per share from $6.4 million or $0.11 per share last year.

The fruit and vegetable supplier said sales for the third quarter grew 3 percent to $884.6 million from $861.1 million last year, driven by higher sales at banana and other fresh produce business segments. The uptick was primarily due to increased sales volume of bananas and pineapples in North America and higher worldwide banana selling prices. Analysts had a consensus revenue estimate of $898.1 million for the quarter.

Chief Executive Mohammad Abu-Ghazaleh said, "Our performance was driven by higher sales volume in our banana and other fresh produce business segments and increased worldwide banana selling prices.

Banana sales rose 5.3 percent to $423.8 million on a 2 percent increase in volume and 3 percent increase in price. Other fresh produce sales rose 1 percent to $371.0 million, while prepared food sales dropped 3.1 percent to $89.8 million.

"As we look forward, we will adhere to our long-term strategic plan to further diversify our product line, expand our distribution channels and presence in new and existing markets, and increase value for our shareholders," Abu-Ghazaleh added.

FDP is currently trading at $30.84, up $1.16 or 3.91%, on the NYSE.