Fresh Del Monte has overcome difficulties in the banana category to report a slight net income increase of $36.2 million (£23.9m) through the first quarter of 2010, an improvement on the $34.9m in the same period of 2009.
The fresh produce giant revealed that net sales increased by seven per cent to $943.1m for the three-month period, up from $879.7m last year - the result of higher net sales in the company's banana and prepared food business.
Higher sales volumes across major operations, increased selling prices in other areas and favourable exchange rates all contributed to the stronger year-on-year result.
But these gains were 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 category slumped by 58 per cent to $18.4m through the quarter, while profit jumped $37.1m to $64.7m in the company's other fresh produce lines including pineapples, melons, fresh-cut, non-tropical and tomato.
Group chairman and ceo Mohammad Abu-Ghazaleh said: "The first quarter of 2010 was a good quarter for Fresh Del Monte Produce. 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.
"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."
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