Fresh Del Monte Produce Inc (FDP) swung to a net profit for the quarter ended Dec. 30, 2016. The company has made a net profit of $12 million, or $ 0.23 a share in the quarter, against a net loss of $73.10 million, or $1.39 a share in the last year period. On an adjusted basis, earnings per share were at $0.26 for the quarter compared with a loss of $0.10 a share in the same period last year. Revenue during the quarter went down marginally by 2.38 percent to $954.60 million from $977.90 million in the previous year period. Gross margin for the quarter expanded 136 basis points over the previous year period to 5.92 percent. Operating margin for the quarter period stood at positive 0.30 percent as compared to a negative 7.50 percent for the previous year period.
Operating income for the quarter was $2.90 million, compared with an operating loss of $73.30 million in the previous year period.
"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."
Operating cash flow improves significantly
Fresh Del Monte Produce Inc has generated cash of $323.30 million from operating activities during the year, up 39.90 percent or $92.20 million, when compared with the last year. The company has spent $134.90 million cash to meet investing activities during the year as against cash outgo of $124.70 million in the last year. It has incurred net capital expenditure of $125.90 million on net basis during the year, up 0.96 percent or $1.20 million from year ago.
The company has spent $192.50 million cash to carry out financing activities during the year as against cash outgo of $127.70 million in the last year period.
Cash and cash equivalents stood at $20.10 million as on Dec. 30, 2016, down 19.28 percent or $4.80 million from $24.90 million on Jan. 01, 2016.
Working capital remains almost stable
Fresh Del Monte Produce Inc has witnessed a decline in the working capital over the last year. It stood at $600.40 million as at Dec. 30, 2016, down 0.60 percent or $3.60 million from $604 million on Jan. 01, 2016. Current ratio was at 2.63 as on Dec. 30, 2016, up from 2.58 on Jan. 01, 2016.
Debt comes down
Fresh Del Monte Produce Inc has recorded a decline in total debt over the last one year. It stood at $232.30 million as on Dec. 30, 2016, down 8.62 percent or $21.90 million from $254.20 million on Jan. 01, 2016. Total debt was 8.76 percent of total assets as on Dec. 30, 2016, compared with 9.79 percent on Jan. 01, 2016. Debt to equity ratio was at 0.13 as on Dec. 30, 2016, down from 0.15 as on Jan. 01, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
