Fresh Del Monte has reported on its results for the third quarter of 2013, highlighting impressive top-line growth but also pointing to several factors that made the three-month period a challenging one for the company, resulting in falling profit.
Net sales for the third quarter of 2013 were US$861.1m, compared with US$788.8m in the prior-year period, the result of increased selling prices in the group's banana and other fresh produce business segments and higher sales volume in all of Del Monte's business segments.
However, group profit (net income) for the quarter was US$6.4m, down considerably when compared with the US$23.5m recorded in the third quarter of 2012.
'We are pleased to report that our strong top line growth and forward momentum continued in the third quarter of 2013, in what is traditionally our most challenging quarter,” said Mohammad Abu-Ghazaleh, chairman and CEO. “During the quarter, we made impressive strides in increasing our global customer relationships. We experienced growth in all major markets as we strove to capitalise on our position as a leader in the global produce industry.
'However, our progress was limited by an industry-wide oversupply of bananas, increases in logistic and fruit costs, as well as unfavourable year-over-year exchange rates,' he added. 'We remain committed to our strategy of extending our reach into value-added products and distribution channels that bring our convenient and healthy products closer to consumers and seeking attractive opportunities in emerging markets that we view as engines of growth. We are well positioned and our focus remains on steady growth and profitability.'
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