Fresh Del Monte Produce Inc has announced a slight dip in profits as it dealt with a seasonally slow period for the company.

Lower volume and selling prices for its Gold pineapple products, along with increased procurement costs in the company's banana operations, led gross profit to fall to $69 million (£42.2m) from $79m.

Fresh Del Monte earned $28.6m, down two per cent from $29.3m a year earlier, in reporting its financial results for the third quarter ended September 25, 2009.

Net sales for the quarter were $766.2m, compared with $832.9m in the third quarter of 2008. Net sales increased in the company’s banana business due to higher worldwide banana selling prices and strong global demand. These gains were more than offset by lower net sales in the company’s other fresh produce, other products and services and prepared food businesses.

Excluding asset impairment and other charges, net operating income for the period was $25.7m, compared with $37.7m for the same period last year, a result of the decrease in gross profit.

Mohammad Abu-Ghazaleh, chairman and ceo at Fresh Del Monte Produce, said: “We are pleased with the quarter’s strength of earnings, in what is seasonally a weaker quarter. Our solid performance is characterised by our team’s ability to balance operational improvements and cost savings, while investing in our future. Although we anticipate weak global market conditions to continue in the near term, we are very optimistic about Fresh Del Monte’s future prospects. Our financial depth and flexibility are exceptionally sound."

Gross profit for the quarter was $69m, compared with gross profit of $79m for the same period last year. Net income for the quarter was $38.6m, compared with $29.1m in the third quarter of 2008. The increase in net income reflects the effect of tax benefits, foreign exchange translation gains and lower interest expense, partially offset by the decline in operating income.

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