Fresh Del Monte Produce Inc (NYSE: FDP) has recorded a significant rise in net income for 2012 due to higher prices in the company's non-banana produce segment and logistics improvements.

Net income rose from US$92.5 million in 2011 to US$143.2 million for 2012, breaking even in the fourth quarter compared to a US$10.1 million loss for the same period in the previous year.

The increase in Del Monte's 'other fresh produce' category gross profit of 15.6% combined with a slight rise in profit for bananas was able to  more than offset a 13.3% drop in the prepared foods segment.

While profitability was up the company's net sales were actually 4.7% lower, with the exception of North America where returns were marginally higher.

The only category to record net sales growth was 'fresh-cut', rising 11% to US$390.9 million. The biggest fall was for tomatoes, dropping 31%, followed by melons (-8%), bananas (-7%) and gold pineapples (-3%).

"We are pleased to report a very solid performance for 2012, with a significant increase in profitability," chief executive officer Mohammad Abu-Ghazaleh said.

"Throughout the year, we continued to build long-term shareholder value through new and innovative delivery channels, increasing our global brand awareness, with a disciplined focus on cost-reduction and efficiency improvements across our organization."

Photo: Fresh Del Monte

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