Fresh Del Monte Produce Inc. (FDP, Financial) filed Quarterly Report for the period ended 2009-03-27.
Fresh Del Monte Produce Inc. is a world leader in the production distribution and marketing of fresh produce. The products are marketed throughout the world under the DEL MONTE brand name and is a widely recognized symbol of product quality and reliability. The major products are bananas pineapples deciduous fruit and melons. The deciduous fruit the company sells includes primarily grapes plums nectarines peaches apricots cherries apples pears and citrus. Fresh Del Monte Produce Inc. has a market cap of $946.9 million; its shares were traded at around $14.9 with a P/E ratio of 5.3 and P/S ratio of 0.3.
As of March 27, 2009, we had $493.1 million of long-term debt and capital lease obligations, including the current portion, consisting of $471.8 million outstanding under the Credit Facility (including the Term Loan), $9.5 million of capital lease obligations and $11.8 million of other long-term debt.
Net Sales. Net sales for the first quarter of 2009 were $879.7 million compared with $894.9 million for the first quarter of 2008. The decrease in net sales of $15.2 million was principally attributable to lower net sales in the prepared food and the other products and services segments, partially offset by higher net sales of bananas. Net sales of prepared food decreased by $25.1 million principally as a result of lower sales volumes of canned pineapples and beverage products due to poor market conditions principally in the U.K. Net sales of other products and services decreased by $11.7 million primarily as a result of lower sales in the 3rd party freight services, Chilean plastics and Argentine grain businesses. Net sales of bananas increased by $21.4 million primarily due to higher per unit sales prices and sales volumes in North America and Asia and higher per unit sales prices in the Middle East, partially offset by lower sales volume and per unit sales prices in Europe. Net sales of other fresh produce had a slight increase of $0.2 million primarily due to higher net sales of melons and gold pineapples, partially offset by lower net sales of fresh-cut products and tomatoes. Net sales of melons increased as a result of a 40% increase in sales volume that resulted principally from improved yields and the new production operations in Guatemala, partially offset by significantly lower per unit sales prices. Net sales of gold pineapples increased primarily due to a 20% increase in sales volume in Europe as a direct result of the Caribana acquisition, partially offset by lower per unit sales prices. Net sales of fresh-cut products and tomatoes decreased due to lower sales volume and per unit sales prices that resulted from lower demand.
Gross Profit. Gross profit was $83.8 million for the first quarter of 2009 compared with $96.9 million for the first quarter of 2008, a decrease of $13.1 million. The decrease in gross profit was attributable to lower gross profit in the other fresh produce segment of $25.5 million and lower gross profit in the other products and services segment of $2.1 million, partially offset by higher gross profit on bananas of $13.5 million and higher gross profit on prepared food of $1.0 million. Gross profit in the other fresh produce segment decreased primarily due to lower gross profit on melons that resulted from lower per unit sales prices as a result of higher industry
Asset Impairment and Other Charges, Net. Asset impairment and other charges of $0.4 million were recorded during the first quarter of 2009 as compared with $4.6 million during the first quarter of 2008. Asset impairment and other charges for the first quarter of 2009 included a $2.0 million impairment charge of the DEL MONTE ® perpetual, royalty-free brand name license for beverage products in the U.K. due to lower than expected sales volume and pricing, partially offset by $1.6 million of reversal of contract termination costs related to the previously announced closing of our Hawaii pineapple operations. Asset impairment and other charges, net, for the first quarter of 2008 related principally to the closure of an under-utilized distribution center and a beverage production facility in the U.K.
Provision for (Benefit from) Income Taxes. Provision for (benefit from) income taxes increased from a benefit of $1.3 million in the first quarter of 2008 to a provision of $2.6 million for the first quarter of 2009, an increase of $3.9 million. During the first quarter of 2008, we recorded a net benefit from uncertain tax positions including interest and penalties of $1.6 million. During the first quarter of 2009, the tax provision reflects increased tax expense due to higher earnings in certain taxable jurisdictions.
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Fresh Del Monte Produce Inc. is a world leader in the production distribution and marketing of fresh produce. The products are marketed throughout the world under the DEL MONTE brand name and is a widely recognized symbol of product quality and reliability. The major products are bananas pineapples deciduous fruit and melons. The deciduous fruit the company sells includes primarily grapes plums nectarines peaches apricots cherries apples pears and citrus. Fresh Del Monte Produce Inc. has a market cap of $946.9 million; its shares were traded at around $14.9 with a P/E ratio of 5.3 and P/S ratio of 0.3.
Highlight of Business Operations:
Net cash used in financing activities for the first quarter of 2009 was $25.5 million compared with $27.0 million for the first quarter of 2008. Net cash used in financing activities for the first quarter of 2009 consisted primarily of net repayments on long-term debt of $24.3 million. Net cash used in financing activities for the first quarter of 2008 consisted primarily of net repayments of long-term debt of $41.6 million, partially offset by $16.5 million of proceeds from stock options exercised.As of March 27, 2009, we had $493.1 million of long-term debt and capital lease obligations, including the current portion, consisting of $471.8 million outstanding under the Credit Facility (including the Term Loan), $9.5 million of capital lease obligations and $11.8 million of other long-term debt.
Net Sales. Net sales for the first quarter of 2009 were $879.7 million compared with $894.9 million for the first quarter of 2008. The decrease in net sales of $15.2 million was principally attributable to lower net sales in the prepared food and the other products and services segments, partially offset by higher net sales of bananas. Net sales of prepared food decreased by $25.1 million principally as a result of lower sales volumes of canned pineapples and beverage products due to poor market conditions principally in the U.K. Net sales of other products and services decreased by $11.7 million primarily as a result of lower sales in the 3rd party freight services, Chilean plastics and Argentine grain businesses. Net sales of bananas increased by $21.4 million primarily due to higher per unit sales prices and sales volumes in North America and Asia and higher per unit sales prices in the Middle East, partially offset by lower sales volume and per unit sales prices in Europe. Net sales of other fresh produce had a slight increase of $0.2 million primarily due to higher net sales of melons and gold pineapples, partially offset by lower net sales of fresh-cut products and tomatoes. Net sales of melons increased as a result of a 40% increase in sales volume that resulted principally from improved yields and the new production operations in Guatemala, partially offset by significantly lower per unit sales prices. Net sales of gold pineapples increased primarily due to a 20% increase in sales volume in Europe as a direct result of the Caribana acquisition, partially offset by lower per unit sales prices. Net sales of fresh-cut products and tomatoes decreased due to lower sales volume and per unit sales prices that resulted from lower demand.
Gross Profit. Gross profit was $83.8 million for the first quarter of 2009 compared with $96.9 million for the first quarter of 2008, a decrease of $13.1 million. The decrease in gross profit was attributable to lower gross profit in the other fresh produce segment of $25.5 million and lower gross profit in the other products and services segment of $2.1 million, partially offset by higher gross profit on bananas of $13.5 million and higher gross profit on prepared food of $1.0 million. Gross profit in the other fresh produce segment decreased primarily due to lower gross profit on melons that resulted from lower per unit sales prices as a result of higher industry
Asset Impairment and Other Charges, Net. Asset impairment and other charges of $0.4 million were recorded during the first quarter of 2009 as compared with $4.6 million during the first quarter of 2008. Asset impairment and other charges for the first quarter of 2009 included a $2.0 million impairment charge of the DEL MONTE ® perpetual, royalty-free brand name license for beverage products in the U.K. due to lower than expected sales volume and pricing, partially offset by $1.6 million of reversal of contract termination costs related to the previously announced closing of our Hawaii pineapple operations. Asset impairment and other charges, net, for the first quarter of 2008 related principally to the closure of an under-utilized distribution center and a beverage production facility in the U.K.
Provision for (Benefit from) Income Taxes. Provision for (benefit from) income taxes increased from a benefit of $1.3 million in the first quarter of 2008 to a provision of $2.6 million for the first quarter of 2009, an increase of $3.9 million. During the first quarter of 2008, we recorded a net benefit from uncertain tax positions including interest and penalties of $1.6 million. During the first quarter of 2009, the tax provision reflects increased tax expense due to higher earnings in certain taxable jurisdictions.
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