More profitable banana sales contributed in no small part to Fresh Del Monte Produce’s strong third quarter financial results, the group revealed today (28 October).
Chairman and CEO Mohammed Abu-Ghazaleh attributed the Coral Gable, Florida, company's higher sales, profit and income this quarter to its strategy of maximising sales in its strongest markets.
Going forward, Abu Ghazaleh said Fresh Del Monte planned to diversify its product line and expand its distribution channels and presence in new and existing markets.
“Our performance was driven by higher sales volumes in our banana and other fresh produce business segments, and increased worldwide banana selling prices,” said Abu-Ghazaleh, announcing the 2014 third quarter financial results.
Net sales for the third quarter of 2014 rose 3 per cent to US$884.6m compared to the prior-year period. Del Monte attributed this growth to increased sales of bananas and pineapples in North America, and higher worldwide selling prices.
Gross profit for the quarter jumped 39 per cent to US$73.9m, due to a rise in profit in the company’s banana business segment.
Increased sales prices, favourable exchange rates and lower sea-freight and distribution costs pushed up banana profits, the company explained.
Operating income rose by US$21.9m to US$29.3m, while net income for the third quarter of 2014 increased by US$13.5m to US$19.9m compared to the prior-year period.
