Peru: big sales drop for Camposol in Q3
Peru's leading agroindustrial company Camposol reported a 22.5% year-on-year sales drop in the third quarter of 2012, mainly due to lower avocado volumes and higher production from the U.S. and Mexico.
A company report highlighted the fruit is the most profitable in Camposol's portfolio with a gross margin of 53.6%, which is why volume setbacks can impact so negatively on results.
Mango volumes were also down 28.1% to 7,480MT but this was partially offset by a 10.3% price rise.
A mild "El Niño" effect brought a warm winter in 2012, stunting production this season. Adverse weather conditions could also bring down asparagus production in the third and fourth quarters of the year.
Reported sales for the quarter came in at US$38.3 million. EBITDA, as of September, 30, was $21.1 million for the past 12 months, compared to $26.3 million in the prior period. The company maintains a cash balance of US$25.8 million.
Volume sold in the third quarter of 2012 dropped 16.63% from the same quarter in 2011, coming in at 14.575 tons (MT). Average prices also dropped 17%, down from US$2.826 to US$2.627.
Despite negative reports for this quarter, Camposol anticipates good long-term growth for exotic fruits and vegetables. Avocados and mangoes show potential for growth and increased per capita consumption.
Asparagus consumption remains stable but the market shows a potential opening as exports fall from China. The company expects good demand from the U.S. and Europe.
The company also opened a U.S. office this year and has strengthened its European office with additional commercial staff to help increase direct sales through its own distribution.