US-based fresh produce group Fresh Del Monte Produce has announced that the group suffered year-on-year falls in both net sales and gross profit during the third quarter (Q3) of the year.
According to the group's quarterly financial statement for the period ended 25 September 2009, net sales for the quarter fell to US$766.2m (€511m) from US$832.9m (€555.6m) in 2008. While sales were boosted by increased demand and higher selling prices in the company's banana business, these gains were offset in Del Monte's other business sectors, including fresh produce and prepared foods.
Gross profit for the three-month period dropped to US$69m (€46m) from US$79m (€52.7m) a year previous, the direct result of lower selling prices in gold pineapples and high procurement costs in bananas, partially offset by higher gross profit in the fresh-cut sector.
Net income for the quarter stood at US$38.6m (€25.7m), the group said, up from US$29.1m (€19.4m) in 2008, while earnings per diluted share hit US$0.61 compared with US$0.46 per diluted share last year.
'We are pleased with the quarter's strength of earnings, in what is seasonally a weaker quarter,' said group chairman and CEO Mohammad Abu-Ghazaleh. 'Our solid performance is characterised by our team's ability to balance operational improvements and cost savings, while investing in our future.
'Although we anticipate weak global market conditions to continue in the near term, we are very optimistic about Fresh del Monte's future prospects,' he added. 'Our financial depth and flexibility are exceptionally sound.'
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