CORAL GABLES, Fla.– Fresh Del Monte Produce Inc. (NYSE:FDP) today reported financial results for the fourth quarter and year ended December 28, 2018. For the full year, the Company reported a loss per share of $0.45, compared with earnings per diluted share of $2.39 for 2017. The Company reported an adjusted earnings per diluted share of $0.44 for the full year 2018, compared with adjusted earnings per diluted share of $2.43 for the full year 2017. The Company reported a loss per share of $0.70 in the fourth quarter of 2018, compared with a loss per share of $0.13 in the fourth quarter of 2017. The Company reported an adjusted loss per share of $0.43 in the fourth quarter of 2018, compared with an adjusted loss per share of $0.08 in the fourth quarter of 2017.
“We had higher sales in North America, driven by our acquisition of Mann Packing Company in 2018,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. “This strategic acquisition accelerated our efforts to diversify our presence in the fresh and fresh-cut vegetable industry. We’re proud of how well the integration has gone during a year in which we faced a number of other challenges, including port delays, severe winter weather events and truck shortages in the U.S., along with higher operating costs. As we enter 2019, we continue to focus sharply on implementing our operating strategies, and taking aggressive action to transform our Company to meet consumer demand for healthy and convenient food products.”
Net sales for the year were $4,493.9 million, a 10% increase compared with $4,085.9 million in 2017. Net sales for the fourth quarter were $1,045.9 million, compared with $953.7 million in the prior year’s fourth quarter. The increase in net sales for the full year and fourth quarter were driven by higher net sales in the Company’s other fresh and prepared food business segments as a result of the Company’s recent acquisition of Mann Packing Company, partially offset by lower net sales in the Company’s banana business segment.
Gross profit for the year was $279.8 million, compared with gross profit of $331.6 million in 2017. Gross profit for the fourth quarter was $42.4 million, compared with $51.0 million in the prior year’s fourth quarter. The decrease in gross profit for the full year and fourth quarter were primarily attributable to higher fruit and distribution costs in all of the Company’s business segments, along with lower banana sales volume, partially offset by favorable exchange rates.
Operating income for the year was $38.6 million, compared with an operating income of $152.7 million in 2017. Adjusted operating income was $82.1 million in 2018, compared with $155.1 million in 2017. Operating loss for the fourth quarter was $20.4 million, compared with operating income of $2.6 million in the prior year’s fourth quarter. Adjusted operating loss for the fourth quarter was $7.5 million, compared with adjusted operating income of $5.2 million in the fourth quarter of 2017. The change in operating income for the full year and fourth quarter was primarily attributable to higher asset impairment and other charges and lower gross profit.
Net loss attributable to Fresh Del Monte Produce Inc. for the year was $21.9 million, compared with net income of $120.8 million in 2017. Adjusted net income was $21.6 million, compared with adjusted net income of $123.2 million in 2017. Net loss attributable to Fresh Del Monte Produce Inc. for the fourth quarter was $34.0 million, compared with a net loss of $6.3 million in the prior year’s fourth quarter. Adjusted net loss was $21.1 million, compared with an adjusted net loss of $3.7 million in the fourth quarter of 2017. The change in net (loss) income for the full year and fourth quarter reflects lower operating income, along with higher interest expense and higher other expense, net.
