Fresh Del Monte has enjoyed year-on-year increases in net sales and net income for the third quarter of the year, a period that has "pleased" chairman and chief executive Mohammad Abu-Ghazaleh.
Net sales for the quarter stood at US$950.2m, compared with US$936.1m in 2015, the result of higher net sales in the Company's other fresh produce and prepared food business segments, partially offset by lower sales volume of bananas in North America and Europe.
Net income was US$35.2m, compared with net income of US$28.5m last year, while comparable net income was $60.9m.
“We are very pleased with our strong financial performance in the third quarter of 2016,” said Mohammad Abu-Ghazaleh, chairman and chief executive. “Our performance demonstrates the strength of our diversification strategy and the results of the efficiency improvements and cost-control initiatives we put in place over the past couple of years to increase profitability and position ourselves for sustainable growth.
"Increased sales in our avocado, fresh-cut and pineapple product lines collectively drove our financial performance during the quarter, along with improved global banana selling prices, and lower commodity costs. Given the strength of our business model and our focus on continuous performance improvements, we believe we are well positioned to deliver value to Fresh Del Monte’s shareholders over the long-term.”
Banana sales were in line with the prior year period, with volume 2 per cent lower than the prior year, while gold pineapple sales increased 3 per cent to US$123m despite volume decreasing 3 per cent.
Fresh-cut sales increased 7 per cent to US$134.6m, and avocado sales increased 47 per cent to US$67.1m.