Peru-based Camposol Holding has reported its third quarter results, revealing higher sales and earnings when compared with the same period of 2014.
The group sold 28,995 tonnes during the quarter of 2015, up 15.6 per cent, mainly attributed to higher volumes of avocados and blueberries. The average price was US$2.53 per net kg, up 3.3 per cent.
As a result, Camposol reported sales of US$73.4m in the third quarter, up 19.9 per cent. The average cost of goods sold during the three-month period was US$1.67 per net kg, down 6.2 per cent as a result of a decrease in the cost of blueberries, peppers and mangoes.
EBITDA was US$14.9m, up 260 per cent thanks to higher volumes and prices for avocados, and greater volumes and reduced cost per unit of blueberries.
The Company expects to continue its diversification strategy by increasing the production in the fruit and vegetable segment (blueberries) and seafood segment (conversion of shrimp ponds), as well as continuing to reinforce the trading segment (direct sales to retailers), adding value to its clients through commercial, marketing and service initiatives which should result in higher margins.
"The third quarter results are in line with our expectations," said Samuel Dyer Coriat, executive chairman of Camposol Holding Ltd. "By year-end, the company results will reflect an important increase of our blueberries segment (around 400 per cent higher in volume than the previous year). Within the next two years, we will see an important growth in volumes (avocados, blueberries and shrimp), without additional substantial CapEx."
Camposol stated that the long-term growth prospects for exotic fruit and vegetable markets are excellent. Avocado and blueberry consumption is growing, with headroom for increased per capita consumption in key markets. In the case of asparagus, although consumption is stable, supply is falling due mainly to reduced exports from China. The Company expects good demand for all fresh produce in general and for avocados specifically in both the US and Europe.