Del Monte UK has seen profits plummet in the last year as it dumped certain lines that were not making money.
Pre-tax profits at the Staines-based business fell 96 per cent from £2.9 million in the year to 1 January 2010 to £117,000 at 31 December.
Turnover over the same period fell from £140m to £109.8m, according to accounts filed at Companies House last week.
Staff levels were reduced from 559 to 520, with the bulk lost from its manufacturing operations.
In the directors’ report, the accounts state: “Turnover decreased by £30,262,000 in 2010 back to similar levels of 2008. Reduced importation of fresh fruit accounts for a significant part of the reduction, where the company has withdrawn from supplying fruit that is uneconomical due to inflationary factors that cannot be recovered from higher prices.”
Internationally, Fresh Del Monte recorded a net sales increase of $39.7m for the quarter ending 1 July 2011 to $1.04 billion, compared with $1bn in the same period of 2010, attributed to higher selling prices in all of Del Monte’s business segments.
However, net income for the period dropped to $46.3m from $52.6m last year, the result of increased income taxes - although these were partially offset by an increase in operating income (up to $56m from $51.6m) and lower interest expense.
"We were pleased to deliver solid growth in net sales and operating income during the second quarter, despite a number of external challenges," said Mohammad Abu-Ghazaleh, Fresh Del Monte's chairman and CEO.
"A depressed fresh produce market in Europe characterised by significantly lower banana and pineapple selling prices during the month of June, along with substantially higher fuel costs and continued competitive pressure in our melon business collectively impacted our financial results."
Yearly net sales in the group's banana sector increased three per cent to $466m, primarily the result of higher banana selling prices in the company's Asia, North America and Middle East regions.
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