Dole Food saw first quarter profit dip sharply on the back of restructuring costs, but said that sales of fresh fruit, vegetables and packaged foods all rose, driven by higher prices.
The companhy said yesterday (3 May), that during the quarter ended 26 March net profit fell to US$2m, down from $22m in the same quarter of the previous year. Excluding unrealised losses from the refinancing of the company’s yen cross currency swap and certain other items, comparable income from continuing operations was $45m.
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Revenue increased 5% over the quarter to $1.7bn. The company said that fresh fruit revenue benefited from higher sales of bananas in North America and higher volumes of Chilean deciduous fruit sold, which was partially offset by planned lower volumes of bananas sold in Europe.
Fresh vegetable revenue increased from improved pricing across all major product lines as well as higher volumes sold of packaged salads. Packaged food revenue increased primarily due to higher volumes sold in Asia and Europe, as well as through improved pricing in North America, which partially offset by lower volumes sold in North America, due to the timing of Easter this year.
Dole president and CEO David DeLorenzo said: “Our fresh fruit segment realised a turnaround on two fronts – better market conditions in Europe and Asia, and an improved cost position in our European operations due to our restructuring plan. Our packaged foods and fresh vegetable operations continued to have strong performances, with some of the packaged foods earnings growth offset with investment in our new product introductions.”
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