Fresh Del Monte has announced that net income climbed slightly to US$36.2m through the first quarter (Q1) of 2010, or US$0.61 per diluted share, an improvement on the US$34.9m recorded during the corresponding period of 2009.
The US-based fresh produce giant revealed that net sales increased by 7 per cent to US$943.1m for the three-month period, up from US$879.7m last year, the result of higher net sales in the company's banana and prepared food business segments.
Higher sales volumes across major operations, increased selling prices in other areas and favourable exchange rates, particularly in Asia, all contributed to the stronger year-on-year result, Del Monte said.
These gains were, however, partially offset by 'significantly lower' selling prices in the group's European banana operations, lower banana volumes sold in Asia, and lower sales in the company's other product and services business segment.
Gross profit for Del Monte's banana segment actually slumped by 58 per cent to US$18.4m through the quarter, while profit jumped US$37.1m to US$64.7m in the company's other fresh produce segment, including gold pineapples, melons, fresh-cut, non-tropical and tomato.
'The first quarter of 2010 was a good quarter for Fresh Del Monte Produce,' said group chairman and CEO Mohammad Abu-Ghazaleh. 'The year-over improvement in net sales, gross profit and net income are all indicative of the strength and value of our diversified business model.
'While the global economy, and particularly Europe, remains a concern, we believe the overall performance of our globally sourced fresh and prepared products, along with our vertically integrated approach to the industry, provides us the flexibility to withstand varying market conditions,' he added. 'We remain confident in our strategy and will continue to make sound investments in our business, as we maintain our commitment to increase shareholder value over the long-term.'
No comments yet