Mixed results for Del Monte

United States

Thursday 04 November 2010

Benefits of Del Monte are in decrease due to banana industry: higher production costs, unfavorable exchange rates and difficult European market.

Fresh Del Monte Produce Inc. announced its financial results for the third quarter.

Gross profit for the quarter decreased to $ 52.0 million, compared to $ 69.0 million in Q3 2009. The company Del Monte attributes this decline to the decline in profitability in bananas.

we are operating in a very challenging environment, said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer at Fresh Del Monte Produce.

"Adverse weather conditions again impacted our banana production areas in Guatemala, resulting in higher production costs. These costs were compounded by unfavorable exchange rates in several producing countries, and a difficult banana market in Europe”.

But net sales for the third quarter of 2010 increased by $ 26.9 million from $ 766.2 million dollars in 2009 to 793,100,000 dollars this year.

Source : Del Monte