Fresh Del Monte profits up despite banana sales decline in Q3
In a release yesterday, the company noted there was a lower sales volume of bananas - which itself accounts for 44% of revenue - in North America and Europe.
However, improved pricing in Asia helped soften the blow with total sales for the category down by less than a per cent.
“We are very pleased with our strong financial performance in the third quarter of 2016,” CEO Mohammad Abu-Ghazaleh said in the release.
"Our performance demonstrates the strength of our diversification strategy and the results of the efficiency improvements and cost-control initiatives we put in place over the past couple of years to increase profitability and position ourselves for sustainable growth.
"Increased sales in our avocado, fresh-cut and pineapple product lines collectively drove our financial performance during the quarter, along with improved global banana selling prices, and lower commodity costs."
Profitability was also supported by lower transport and fruit costs during the quarter, but hindered on the other hand by impairment costs including US$18.7 million in relation to the transition of outgoing president Hani El-Naffy.
Fresh Del Monte also reported some impairment charges relating to drought conditions in Brazil and underutilized assets in Central America.