Higher spending on promotion and production has cut Fresh Del Monte’s latest profits by more than half despite an upsurge in sales.
Fresh Del Monte announced this week it earned $5.7 million, or 10 cents a share, for the third quarter period of 2005 - down from $13.7m, or 24 cents a share, a year ago.
The company said results were restricted by increased fruit production and transportation costs and “greater spending in selling, promotions and advertising to support the prepared food business”.
Meanwhile, revenue rose from $610.4m to $740.5m, thanks to increased sales of prepared food, higher banana prices in Europe and Asia, and expanding sales of fresh-cut fruit and vegetables in North America and Europe.
Del Monte also reaffirmed its 2005 target for earnings in a range of between $2.30 and $2.40 a share.
The company’s shares ended yesterday’s session at $25.32.
