Fresh Del Monte Produce has reported its financial results for the first quarter (Q1) ended 29 March 2013, with net income sliding to US$41.1m (€31.4m) from US$62.5m (€47.8m) in 2012, reflecting lower operating income and higher provision for income taxes.
The group's gross profit came in at US$98.6m, down from US$112.4m last year, the result of weaknesses in the company's European banana business segment, attributed to lower selling prices, excess industry supply, lower consumer demand and the ongoing weak economic environment.
However, net sales improved to US$918.8m, up from US$897.9m, helped by expanded sales in the company's 'other fresh produce' segment in North America and the Middle East, along with increased banana volumes in its Middle East and North American regions.
'We were pleased with the overall progress we made towards our strategic initiatives during the first quarter of 2013,' said Mohammad Abu-Ghazaleh, group chairman and CEO. 'Our team did an exceptional job spurring growth and amassing greater market share led by gains in our fresh-cut business. However, these operational achievements and stronger net sales were countered by ongoing challenges in Europe, which negatively affected our profitability.'
By segment, banana net sales for the quarter increased 2 per cent to US$406m, primarily due to higher sales in the company's Middle East and North America regions, while sales in the 'other produce' sector increased 3 per cent to US$433.7m thanks to greater sales in fresh-cut, non-tropical and melon lines.
