Despite a US$48m increase in net sales, Fresh Del Monte has reported a fall in net profit of 34 per cent for the second quarter of 2008, ended 27 June.
Year-on-year net sales were up to US$972.2m, an increase of five per cent, but net income for the quarter dropped to US$41.9m from US$63.9m the previous year.
Despite the results, group chairman and CEO Mohammad Abu-Ghazaleh retained a positive outlook.
'The second quarter was an exciting period for Fresh Del Monte in setting the stage for future growth,' Mr Abu-Ghazaleh said. 'As we announced on 9 June we completed the largest acquisition in our history – the purchase of Caribana dramatically boosts our banana and gold pineapple production.'
The group’s results have been affected by current global trading conditions, which have seen costs rise on fuel, packaging, fertilisers and shipping.
'The second quarter was also a challenging period with significantly higher costs that were only partially offset by strong price increases, as well as several adverse weather related events,' Mr Abu-Ghazaleh added. 'Going forward, the Caribana acquisition will generate significant synergies, while at the same time we are aggressively pursuing price increases.'
The second-quarter results do not take into account asset impairment and other charges, primarily related to flooding at the group’s banana operations in Brazil and the closure of “underutilised” distribution centres in the UK, Fresh Del Monte said.
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