Peru: Camposol profits surge 72% in Q3

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Peru: Camposol profits surge 72% in Q3

Peru's leading agri-export company Camposol may have sold less fruit in the third quarter of 2016, but a strong performance from blueberries and shrimp combined with high avocado prices prompted a massive uptick in profits.

Volume was down 8.7% at 23,209 metric tons (MT) but the average price of goods sold rose by almost a third, pushing up EBITDA 71.9% to US$24.8 million.

Revenue for the period was up 19.2% at US$72.1 million.

In its report for the period, the board described blueberries as the most profitable crop in its portfolio, and a 228.6% rise in volume for the antioxidant-rich berry contributed US$15 million in sales.

Avocados were still the leading source of income however, at US$29.8 million.

This graph courtesy of Agronometrics shows how significant the rise in avocado prices has been.

This graph courtesy of Agronometrics shows how significant the rise in avocado prices has been.

Early on in the quarter in August, the board approved the discontinuation of asparagus operations as a result of a focus on fresh produce, as that category was predominantly a preserved and processed deal. The loss from pulling out of asparagus was registered as US$5.2 million.

More recently, on Oct. 11 the board promoted Jorge Ramirez Rubio as Camposol Foods' new CEO, and has signaled its intention to continue its diversification strategy by increasing production in the fruit and vegetable segment, particularly in blueberries and tangerines, as well as through growing its seafood and direct retail trading segments.

"During the first three quarters of 2016 Camposol has delivered. It has successfully increased volumes and margins in blueberries, of which 83% was sold directly by our commercial offices, and in shrimps from intensive ponds," Ramirez Rubio said in a release.

"The entire value chain was properly aligned to achieve such results, with still plenty of opportunities to improve in the future. With favorable market trends and highly focused on our strategy, we will continue strengthening Camposol as a world class company."

In other news relating to Camposol, Spanish publication recently reported the Peruvian company signed a deal with Fresgarrido to trade blueberries directly to clients in the Iberian nation, however Camposol has denied any involvement in the story and claims the only distribution channels for its products are Camposol's commercial offices.


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