Fresh Del Monte Produce saw its earnings slide in the third quarter, hurt by one-off charges, an industry-wide oversupply of bananas, and increased logistic and fruit costs.
Earnings dropped to US$6.4m in the three months ended 27 September, down from $23.5m in the prior year period. Operating income fell to $7.4m from $28.2m in the comparable period last year.
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Earnings were hit by one-off charges, primarily inventory write-offs and plantation clean up costs due to flooding in Costa Rica. Other charges related to the closure of distribution centres in Germany and Poland.
Sales in the period, however, were up 9.2% to $861.1m due to increased selling prices in the company’s banana and other fresh produce business segments and higher sales volume in all of the its division.
“During the quarter, we made impressive strides in increasing our global customer relationships,” said CEO Mohammad Abu-Ghazaleh. “We are well positioned and our focus remains on steady growth and profitability.”
Click here to view the full earnings release.
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