Fresh Del Monte Produce today (27 October) reported a slide in nine-month earnings but the US produce giant saw its shares jump in early trading.
The company's shares were up 10.16% at US$46.40 at 10:39 EDT as investors likely reacted to improved third-quarter results.
Go deeper with GlobalData
Net income for the third quarter of 2015 was $28.5m, compared with $19.9m in the third quarter of 2014. Comparable net income stood at $30m, versus $20.1m a year earlier.
The US-based produce giant's third-quarter operating income was $34.4m. A year earlier, its operating income was $29.3m.
The company's third-quarter numbers were helped by an acceleration in its sales growth in the three months to 25 September. Third-quarter net sales were up 5.8% at $936.1m. Over the nine-month period, net sales increased 2.7% to $3.08bn.
"We are very pleased with our financial performance in the third quarter. We saw excellent growth in our fresh-cut and avocado businesses. We hold a commanding position as the global leader in the fresh-cut space, and avocados are becoming one of our fastest growing categories," chairman and CEO Mohammad Abu-Ghazaleh said.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataHowever, Fresh Del Monte's profit numbers were lower when looked at over nine months. Its net income for the first nine months of 2015 was $140m, against $145m in 2014, hit in part by higher interest costs.
Its operating income stood at $164.3m, versus $169.8m a year earlier. The nine-month operating profits included higher impairment charges but also benefited from a gain on the disposal of an asset.
