Fresh Del Monte Produce Inc. (FDP, Financial) filed Annual Report for the period ended 2011-12-30.
Fresh Del Monte has a market cap of $1.45 billion; its shares were traded at around $22.97 with a P/E ratio of 12.4 and P/S ratio of 0.4. The dividend yield of Fresh Del Monte stocks is 1.6%.
We believe we are the market leader of fresh pineapples worldwide, based on internally generated data. Pineapple sales in North America, Europe, Asia and the Middle East accounted for 52%, 26%, 16% and 5%, respectively, of our net sales of pineapples in 2011. From 1996 to 2011, our volume of the Del Monte GoldĀ® Extra Sweet pineapple increased from two and a half million boxes to 30.9 million boxes. Our pineapple sales volume increased by 6% in 2011. Based on FAO data, for the 10-year period from 1999 to 2009, the volume of pineapple sales in the United States, Europe, Asia and the Middle East increased by 156%, 163% and 61% and 713%, respectively. We believe that a substantial portion of this growth is due to our introduction of the Del Monte GoldĀ® Extra Sweet pineapple. As a result of our continued expansion of existing pineapple operations, we expect to continue to increase the sales volume of our extra sweet pineapples in the near future with extra sweet pineapples grown in Costa Rica and the Philippines.
We sell a variety of non-tropical fruit, including all of the types referred to above. In 2011, non-tropical fruit sales in North America, Europe, the Middle East, Asia and South America accounted for approximately 54%, 7%, 21%, 12% and 6%, respectively, of our total net sales of non-tropical fruit. We obtain our supply of non-tropical fruit from company-owned farms in Chile and from independent growers in Chile, the United States, Mexico, Spain and New Zealand. In Chile, we purchase non-tropical fruit from independent growers and also produce a variety of non-tropical fruit on approximately 5,100 acres of company-owned or leased land. Our avocados are sourced principally from Mexico. In Mexico, we have our own sourcing operations, ensuring a consistent supply of high-quality non-tropical fruit during the growing season. Purchase contracts for non-tropical fruit are typically made on an annual basis.
We sell a variety of melons including cantaloupe, honeydew, MAGĀ® melon, watermelon and specialty melons, which we introduced to meet the different tastes and expectations of consumers in Europe. Cantaloupes represented approximately 74% of our melon sales volume in 2011. We are a significant producer and distributor of melons from November to May in North American and European regions by sourcing melons from our company-controlled farms and independent growers in Central America, where production generally occurs during this period. Melons sold in North America and Europe from November to May generally command a higher price due to fewer operators and the availability of alternative fruits. Melon sales in North America and Europe accounted for 87% and 12%, respectively, of our net sales of melons in 2011. In terms of volume, we produced 92% of the melons we sold in 2011 on company-controlled farms and purchased the remainder from independent growers.
As part of the Del Monte Foods acquisition, we acquired perpetual, royalty-free licenses to use the DEL MONTEĀ® brand for processed and/or canned food in more than 100 countries throughout Europe, Africa, the Middle East and countries formerly part of the Soviet Union. Included in other non-current assets at December 30, 2011 is an indefinite-lived intangible asset of $68.4 million related to these licenses. This indefinite-lived intangible asset is not being amortized but is reviewed for impairment consistent with the Codification guidance on āIntangibles ā Goodwill and Otherā. In 2010 and 2009, we recorded charges for impairment of the DEL MONTEĀ® royalty-free brand name license for U.K. beverage products due to lower than expected sales volume and pricing of $1.4 million and $2.0 million, respectively. As of December 30, 2011, we are not aware of any items or events that would cause a further adjustment to the carrying value of goodwill.
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Fresh Del Monte has a market cap of $1.45 billion; its shares were traded at around $22.97 with a P/E ratio of 12.4 and P/S ratio of 0.4. The dividend yield of Fresh Del Monte stocks is 1.6%.
Highlight of Business Operations:
We believe that we are the world s third-largest marketer of bananas, based on internally generated data. Our banana sales in North America, Europe, Asia and the Middle East accounted for approximately 47%, 22%, 18% and 11% of our net sales of bananas in 2011, respectively. We produced approximately 40% of the banana volume we sold in 2011 on company-controlled farms, and we purchased the remainder from independent growers.We believe we are the market leader of fresh pineapples worldwide, based on internally generated data. Pineapple sales in North America, Europe, Asia and the Middle East accounted for 52%, 26%, 16% and 5%, respectively, of our net sales of pineapples in 2011. From 1996 to 2011, our volume of the Del Monte GoldĀ® Extra Sweet pineapple increased from two and a half million boxes to 30.9 million boxes. Our pineapple sales volume increased by 6% in 2011. Based on FAO data, for the 10-year period from 1999 to 2009, the volume of pineapple sales in the United States, Europe, Asia and the Middle East increased by 156%, 163% and 61% and 713%, respectively. We believe that a substantial portion of this growth is due to our introduction of the Del Monte GoldĀ® Extra Sweet pineapple. As a result of our continued expansion of existing pineapple operations, we expect to continue to increase the sales volume of our extra sweet pineapples in the near future with extra sweet pineapples grown in Costa Rica and the Philippines.
We sell a variety of non-tropical fruit, including all of the types referred to above. In 2011, non-tropical fruit sales in North America, Europe, the Middle East, Asia and South America accounted for approximately 54%, 7%, 21%, 12% and 6%, respectively, of our total net sales of non-tropical fruit. We obtain our supply of non-tropical fruit from company-owned farms in Chile and from independent growers in Chile, the United States, Mexico, Spain and New Zealand. In Chile, we purchase non-tropical fruit from independent growers and also produce a variety of non-tropical fruit on approximately 5,100 acres of company-owned or leased land. Our avocados are sourced principally from Mexico. In Mexico, we have our own sourcing operations, ensuring a consistent supply of high-quality non-tropical fruit during the growing season. Purchase contracts for non-tropical fruit are typically made on an annual basis.
We sell a variety of melons including cantaloupe, honeydew, MAGĀ® melon, watermelon and specialty melons, which we introduced to meet the different tastes and expectations of consumers in Europe. Cantaloupes represented approximately 74% of our melon sales volume in 2011. We are a significant producer and distributor of melons from November to May in North American and European regions by sourcing melons from our company-controlled farms and independent growers in Central America, where production generally occurs during this period. Melons sold in North America and Europe from November to May generally command a higher price due to fewer operators and the availability of alternative fruits. Melon sales in North America and Europe accounted for 87% and 12%, respectively, of our net sales of melons in 2011. In terms of volume, we produced 92% of the melons we sold in 2011 on company-controlled farms and purchased the remainder from independent growers.
As part of the Del Monte Foods acquisition, we acquired perpetual, royalty-free licenses to use the DEL MONTEĀ® brand for processed and/or canned food in more than 100 countries throughout Europe, Africa, the Middle East and countries formerly part of the Soviet Union. Included in other non-current assets at December 30, 2011 is an indefinite-lived intangible asset of $68.4 million related to these licenses. This indefinite-lived intangible asset is not being amortized but is reviewed for impairment consistent with the Codification guidance on āIntangibles ā Goodwill and Otherā. In 2010 and 2009, we recorded charges for impairment of the DEL MONTEĀ® royalty-free brand name license for U.K. beverage products due to lower than expected sales volume and pricing of $1.4 million and $2.0 million, respectively. As of December 30, 2011, we are not aware of any items or events that would cause a further adjustment to the carrying value of goodwill.
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