US fresh produce giant Fresh Del Monte has reported on a 'strong' set of results for the second quarter (Q2) of 2009, with net sales up to US$978.4m (€687m) from US$972.2m (€683m) during the corresponding period of 2008.
Net profit for the quarter ended 26 June increased from US$41.9m (€29.4m) last year to US$52.2m (€36.7m), the group revealed, with earnings per diluted share up to US$1.11 from US$0.87 in 2008.
'We are pleased with out second quarter performance, given the extremely challenging economic environment,' said Fresh Del Monte CEO Mohammad Abu-Ghazaleh. 'Our impressive performance in the quarter validates the advantages of our strategy and our business model.'
The group's positive second quarter was partly driven by its banana operations, with prices higher globally, while the fresh-cut and pineapple sectors also performed well.
'We saw strong results in our banana business, primarily due to the benefit of higher worldwide banana selling prices, combined with continued industry-wide supply shortages,' he noted. 'Our premium gold pineapple category continued to grow; we achieved significant efficiencies in our fresh-cut category; and importantly., we began to see signs of improvement in our melon product category during the quarter.
'During the quarter we made the decision to stop planting gold pineapple in Brazil as a result of quality issues, lower production and increased costs,' he added. 'We will continue to harvest the gold pineapple already in the ground as long as it is economically and commercially feasible.'
Mr Ghazaleh explained that the recent decision to refinance the group's credit facility, combined with strategies already in place, would stand Fresh Del Monte in good stead for the future.
'We recently completed the refinancing of our credit facility,' he said. 'Our new credit facility has no debt maturities until January 2013. We are confident that our strategic plan and ongoing operational improvements, combined with our strong cash flow and financial stability, positions Fresh Del Monte for continued long-term success and growth.'
Click here for the full detailed second-quarter financial results
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