Fresh Del Monte Produce Inc has announced financial results for the second quarter and six months ended June 25, 2004.

Net sales for the second quarter of 2004 were $763.6 million, compared with $700.6m in the same period last year. This nine per cent net sales growth was driven by higher banana volume and pricing, stronger fresh-cut sales, increased tomato and potato repack revenues and favorable foreign exchange.

Net income for the 2004 second quarter was $59.4m, compared with $81.2m in the second quarter of 2003. Net income for the first six months ended June 25, 2004 decreased to $106.4m, compared with $169.3m a year ago. Net income for both the quarter and the six-month period was lower due to a decrease in gross margins, partially offset by lower interest payments on debt and reduced expenses.

Gross profit for the second quarter of 2004 declined 19 per cent to $89.1m, compared with gross profit of $109.3m in the second quarter of 2003. The gross profit decrease was a result of higher costs, including fuel and containerboard combined with a decrease in gross profit in other fresh produce.

"We are very pleased with our performance in the second quarter despite unfavorable climate conditions in Colombia and Costa Rica and higher raw material costs," said Mohammad Abu-Ghazaleh, chairman and chief executive officer. "We are particularly encouraged by the results of our fresh-cut operations, which continue to grow substantially."

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