Fresh Del Monte Produce said today (4 May) that it is “confident” about the rest of 2010 as it posted an increase in sales and profits for the first quarter.
Operating income rose 21% to US$57.1m driven by an 18% rise in gross profit, which increased to $98.8m, the company said.
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Net sales for the period ended 2 April rose 7% to US$943.1m, thanks to higher volumes and increased selling prices in the majority of its categories and markets, as well as favourable exchange rates.
“The year over year improvement in net sales, gross profit, and net income are all indicative of the strength and value of our diversified business model,” chairman and CEO Mohammad Abu-Ghazaleh insisted.
However, Fresh Del Monte warned that conditions in European markets remained a “concern”, as the company had been hit by “significantly lower” selling prices for bananas in the region.
“The global economy, and particularly Europe, remains a concern,” Abu-Ghazaleh said.
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By GlobalDataNevertheless, he added: “We believe the overall performance of our globally sourced fresh and prepared products, along with our vertically integrated approach to the industry, provides us the flexibility to withstand varying market conditions.”
