Fresh Del Monte Produce has today reported on a difficult third quarter (Q3) of 2009, with net income falling to US$14.5m (€10.4m) from the US$28.6m (€20.5m) recorded in the same period last year.
According to a financial release, results through the three-month period were impacted by adverse weather that affected Guatemalan banana operations, higher costs and unfavourable exchange rates.
Gross profit dropped from US$69m (€49.5m) in 2009 to US$52m (€37.3m), while operating profit fell from US$18.1m (€13m) in the third quarter last year to US$15.5m (€11.1m), the US-based multinational reported.
However, there were encouraging signs in terms of net sales, with revenue up to US$793.1m (€568.7m) from US$766.2m (€549m) last year, driven by increased banana volumes in North America and the Middle East, higher volumes and price increases in Gold pineapples, and an increased presence in new markets.
'Our third quarter earnings results reflect that we are operating in a very challenging environment,' said Mohammad Abu-Ghazaleh, chairman and chief executive officer at Fresh Del Monte. 'Adverse weather conditions again impacted our banana production areas in Guatemala, resulting in higher production costs. These costs were compounded by unfavourable exchange rates in several producing countries, and a difficult banana market in Europe.
'Nonetheless, while I was clearly disappointed in our overall results, our progress towards our long-term initiatives remained strong during the quarter,' Mr Abu-Ghazaleh added. 'The growth in net sales shows that our expansion into new markets and distribution channels has been well received. As we look forward, we will continue to seek ways to improve our performance, effectively manage our business for growth, and deliver long-term value for our shareholders.'
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