Fresh Del Monte Produce Inc.

Fresh Del Monte Produce Inc. Announces Fourth Quarter and Full Year 2016 Financial Results

CORAL GABLES, Fla.–(BUSINESS WIRE)–Feb. 21, 2017– Fresh Del Monte Produce Inc. (NYSE: FDP) today reported financial results for the fourth quarter and year ended December 30, 2016. For the full year, the Company reported earnings per diluted share of $4.33, compared with earnings per diluted share of $1.17 for 2015. Comparable earnings per diluted share for the full year 2016 were $4.74, compared with comparable earnings per diluted share of $2.43 for the full year 2015. The Company reported earnings per diluted share of $0.23 in the fourth quarter of 2016, compared with a loss per share of $1.39 in the fourth quarter of 2015. Comparable earnings per diluted share for the fourth quarter of 2016 were $0.26, compared with a comparable net loss per share of $0.10 in the fourth quarter of 2015.

“Our positive performance during the fourth quarter and excellent results for the full year demonstrate our ongoing efforts to drive diversification across all of our businesses,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. “Throughout the year, we remained focused on reinforcing our global business platform with a series of strategic initiatives that enhanced our higher-margin portfolio of products and businesses, achieving strong results and growth in our fresh-cut product line with new facilities globally, product line extensions and expanded production areas. We also bolstered our delivery channels and foodservice customers as consumers worldwide continue to increase their purchases of healthy and convenient fresh produce. Looking forward, we see tremendous opportunities for growth, while remaining focused on the bottom line and increasing shareholder value for the long-term.”

Net sales for the year decreased to $4,011.5 million, compared with $4,056.5 million in 2015. Net sales for the fourth quarter decreased to $954.6 million, compared with $977.9 million in the prior year’s fourth quarter. The decrease in net sales for the full year and fourth quarter was due to lower net sales in the Company’s banana and prepared food business segments which was partially offset by higher net sales in the Company’s other fresh produce business segment.

Gross profit for the year was $461.4 million, compared with gross profit of $342.3 million in 2015. The increase in gross profit for the full year was attributable to higher gross profit in all of the Company’s business segments, principally due to lower ocean freight and fruit costs, along with higher selling prices in the Company’s other fresh produce and banana business segments. Gross profit for the fourth quarter was $56.5 million, compared with $44.6 million in the fourth quarter of 2015. The increase in gross profit for the fourth quarter was primarily attributable to lower ocean freight and fruit costs in the Company’s banana business segment.

Operating income for the year was $244.2 million, compared with an operating income of $91.0 million in 2015. Comparable operating income was $265.5 million in 2016, compared with $158.0 million in 2015. The change in operating income for the full year was primarily attributable to higher gross profit in the Company’s banana business segment. Operating income for the fourth quarter was $2.9 million, compared with an operating loss of $73.3 million in the fourth quarter of 2015. Comparable operating income for the fourth quarter was $4.6 million, compared with comparable operating loss of $5.8 million in the fourth quarter of 2015.

Net income attributable to Fresh Del Monte Produce Inc. for the year was $225.1 million, compared with net income of $62.4 million in 2015. Comparable net income was $246.4 million, compared with comparable net income of $129.4 million in 2015. Net income attributable to Fresh Del Monte Produce Inc. for the fourth quarter was $12.0 million, compared with net loss of $73.1 million in the fourth quarter of 2015. Comparable net income was $13.7 million, compared with comparable net loss of $5.6 million in the fourth quarter of 2015.

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