Camposol Holding Plc, the parent company of leading Peruvian fresh produce exporter, has reported strong financial results for July-September and has also confirmed plans to expand its production of table grapes before the end of the year.
The group reported sales of US$30.4m for the third quarter of 2010, an increase of 17.4 per cent on the corresponding figure for the previous year, while its pre-tax earnings before fair value adjustments were also up for the seventh consecutive quarter, registering a 127 per cent rise to US$5.7m compared with the year-earlier period.
That result contributed to a pre-tax profit of US$15.4m for the first nine months of the year, up 152 per cent on January-September 2009, with gross earnings for the 12 months to the end of September around six times higher at US$18.1m against US$2.9m for the year to 30 September 2009.
For the three months to 30 September 2010, however, Camposol saw its sales fall back slightly to US$83.5m compared from US$90.1m in the third quarter of 2009.
Camposol said its EBITDA margin had also improved from 9.7 per cent in the third quarter of 2009 to 18.7 per cent in the third quarter of this year, attributing this mainly to lower unitary costs achieved through a combination of higher field yields and a reduction in variable costs, as well as price improvements in selected products.
'The last twelve months' EBITDA of US$18.1m (at the end of the third quarter) clearly reflects Camposol's growth during 2010 as a result of our focus on proactive price management improving operational efficiency and reducing the cost base,' commented Fabio Matarazzo, chief executive officer of Camposol.
Commercial progress
The company revealed it was considering new opportunities to consolidate its market leadership through additional planting of current crops, planting of new crops and the implementation of its strategic alliance with Riberebro Group, a leading marketer of preserved asparagus and other vegetables.
In July 2010, Camposol exported its first two containers of avocado to the US. 'The quality was accepted and it was commercialised successfully,' the spokesperson revealed. 'However, the exported lot was the final harvest of the year so there will not be more avocado exports to the US until 2011.'
Camposol also revealed that it had so far spent US$4.2m of the US$8.6m it plans to invest in grape production.
Around 256ha of table grape vines have already been planted, with the final figure expected to be around 350ha, due to be completed before the end of the year.
The first crop from this new planted area is expected to become available during the final quarter of 2011, while the first consignments of white asparagus and piquillo peppers are expected to be exported to Riberebro in October 2010.
'Going forward, Camposol will continue to focus on operational improvements and strengthening the financial position,' the spokesperson added. 'Further cost reductions, working capital optimisation, debt reduction and liquidity and cash flow focus are all central to achieve profitable growth going forward.'
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