Fresh Del Monte reports decline in Q3 net income

Fresh Del Monte Produce, a US-based fruit and vegetable producer, has reported a net income decline of 16% to $12.2m for the third quarter that ended 30 September 2011, compared with $14.5m during the same period a year ago.

The company accredited the decline to higher fuel costs, unfavourable exchange rates and weaker sales of melons and tomatoes.

Net sales for the period increased $2.1m to $795.2m, compared with $793.1m a year ago, and were driven by higher sales in the company’s other fresh produce business and North American banana business..

However, the rise in net sales was partially offset by its prepared foods business, which saw an 11% decline in sales to $83.1m.

Gross profit increased $12.1m to $62.9m, compared with $50.8m in the previous year.

Banana sales, which account for 47% of Fresh Del Monte’s total sales, increased 1.4%, while its volume grew 6%.

Sales of other fresh produce increased 2.3%, with sales of gold pineapple up 9% and fresh-cut pineapple up 18%, while sales of melon and tomato were down 28% and 32% respectively.