Peru: Camposol sales rise in H1 despite lower volumes
Peru's largest produce exporter Camposol has recorded a 17% year-on-year rise in revenue for the first half thanks to better prices for its asparagus and avocados.
The company's volumes actually fell by 10% to 31,600 metric tons (MT) but sales and EBITDA before fair value adjustments bounced up to US$77.5 million and US$7.1 million.
Camposol's leading product white asparagus, which represents 31% of sales, registered a volume increase of 16.9% and a slight 3.1% uptick in price per kilogram. The company said consumption of the vegetable was stable while reduced exports from China had led to supply shortfalls.
The opening of the U.S. market to Peruvian avocados without cold treatment meant the category was able to achieve an average price that was 29.4% higher, despite having had to contend with significant local and Mexican volumes.
The company shifted a significant amount of avocados away from the European market, with total exports worldwide only increasing by 2.9%.
Camposol registered a dramatic 1,195% rise in grape volumes due to to new plantings giving their first harvests, but prices fell by 46.1%. The large volume rise however led to an almost seven-fold increase in sales to US$2.5 million.
Preserved piquillo peppers and fresh mangoes did not perform as well for Camposol, with volume declines of 40.1% and 28.3% respectively.
The company also showed it was back in business with artichokes, which it had decided to get involved with again due to strong international demand. From total artichoke sales of just US$23,000 in the first half of 2011, for the same period in 2012 revenue was US$1.37 million.
The company's shrimp busines was also strong, almost doubling sales to US$11.2 million.
Camposol highlighted strong growth prospects for exotic fruits and vegetables, particularly for avocados and mangoes with headroom for increased per capita consumption in key markets.
The company said it was currently focused on adding value to its clients through commercial, marketing and service initiatives which should result on higher margins.
There has been a mild "El Niño" effect during 2012 which has caused us to experience a warm winter. This lack of cold hours needed for the growth of the plants had a negative effect on our volumes of avocado this year and will affect those of asparagus in the fourth quarter.