Fresh Del Monte Produce Reveals First Quarter 2022 Financial Results; Mohammad Abu-Ghazaleh Comments
CORAL GABLES, FL - As companies across the produce industry and beyond continue to face hurdles, Fresh Del Monte Produce is showcasing its successful strategy with the release of its first quarter 2022 results. The quarter ended April 1, 2022, and during the period the company reported net sales of $1.1 billion, a 5 percent increase from the year prior.
"During the first quarter, our net sales increased by $49 million compared with the prior-year period—a direct benefit of leading the industry in the implementation of inflation-justified pricing actions. However, our cost of product sold increased by $64 million due to across-the-board inflationary pressures, resulting in lower operating income," said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. "We remained focused on driving incremental operating leverage through product innovation, cost management, and operational efficiencies as reflected in the significant growth in our third-party freight services."
As part of its $49 million increase in sales, Fresh Del Monte saw increases across several of its business segments, including fresh and value-added products, which earned $672.7 million in net sales, up from $631 million last year.
In addition to several gains, the company announced that it had made headway on its initiatives and goals, despite challenges.
"We made progress on our strategic initiatives effectively managing the business for the long-term despite incremental deterioration of already unprecedented supply chain constraints and higher inflation compounded by the war in Ukraine," Abu-Ghazaleh added. "In keeping with our shareholder value accretion approach, our capital deployment in the first quarter concentrated on operational investments in data-driven technology and smart farming, a strategic investment, and on paying a higher dividend."
To read Fresh Del Monte’s first quarter 2022 results, click here.
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