US: Fresh Del Monte profits drop on banana costs

27 October 2009 | Source: just-food.com

Fresh Del Monte Produce said today (29 October) that lower fresh produce and prepared foods sales and higher banana purchase costs hit its third-quarter profits. 

The US produce company said that sales for the period ended 25 September dropped to US$766.2m, down from $832.9m last year, as higher demand for bananas was offset by a decrease in sales of other produce and prepared products.

Lower selling prices for gold pineapples and higher banana procurement costs saw gross profit for the three-months fell to $69m, from $79m last year.

Net income for the quarter totalled $38.6m, up from $29.1m in 2008.

For the full release click here and click here for Fresh Del Monte chief Mohammad Abu-Ghazaleh's outlook on the economy and Wal-Mart's banana pricing.