US: Fresh Del Monte profits slip on banana prices

By Dean Best | 1 May 2013

Excess supply and lower demand has hit banana prices in Europe

Excess supply and lower demand has hit banana prices in Europe

Fresh Del Monte Produce saw its first-quarter profits drop by more than a third on the back of an over-supply of bananas in Europe.

The US produce giant said yesterday (30 April) its net income fell 34.2% to US$41.1m in the three months to 29 March. Operating income slid 18.3% to $53.5m.

Fresh Del Monte's sales increased 2.3% to $918.8m but lower banana prices in Europe amid excess supply and a fall in consumer demand hit earnings.

"Our team did an exceptional job spurring growth and amassing greater market share led by gains in our fresh-cut business. However, these operational achievements and stronger net sales were countered by ongoing challenges in Europe, which negatively affected our profitability," chairman and CEO Mohammad Abu-Ghazaleh said.

Shares in Fresh Del Monte closed down 7.9% at $25.41 in New York.

Click here for the full release from Fresh Del Monte.

Sectors: Financials, Fresh produce

Companies: Fresh Del Monte Produce

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