Fresh Del Monte has released its results for the second quarter (Q2) of the year, with the fresh produce giant seeing yearly growth in net sales but a drop in net income.

According to the US-based company, net sales for the quarter ended 1 July 2011 increased US$39.7m to US$1.04bn, compared with US$1bn in the same period of 2010, attributed to higher selling prices in all of Del Monte's business segments.

However, net income for the period dropped to US$46.3m from US$52.6m last year, the result of increased income taxes – although these were partially offset by an increase in operating income (up to US$56m from US$51.6m) and lower interest expense.

'We were pleased to deliver solid growth in net sales and operating income during the second quarter, despite a number of external challenges,' said Mohammad Abu-Ghazaleh, Fresh Del Monte's chairman and CEO. 'A depressed fresh produce market in Europe characterised by significantly lower banana and pineapple selling prices during the month of June, along with substantially higher fuel costs and continued competitive pressure in our melon business collectively impacted our financial results.'

Yearly net sales in the group's banana sector increased 3 per cent to US$466m, primarily the result of higher banana selling prices in the company's Asia, North America and Middle East regions.

Elsewhere, sales climbed 8 per cent to US$155.3m for Gold pineapples, 12 per cent to US$100.6m for fresh-cut produce, 22 per cent to US$113.9m for non-tropical produce and 6 per cent to US$32.3m for tomatoes.

However, net sales dropped 23 per cent to US$41.9m in the group's melon line, with volumes down 22 per cent.

'During the quarter, we worked aggressively to restructure our melon programme, a move which enables us to shift resources to our new, well-received specialty melon program,' Abu-Ghazaleh added. 'We continue to maintain our position of having one of the strongest balance sheets and net-asset rich companies in the industry with a focus on seeking opportunities that will deliver improved performance and shareholder value over the long-term.'

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