Fresh Del Monte Produce said today (2 March) that its prepared food business segments had negatively impacted its 2009 results.
For the 12 months to 1 January, the company earned US$143.9m compared to $157.7m in 2008. Annual sales dropped slightly to $3.49bn from $3.53bn in the prior year.
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Net income for the fourth quarter dropped to $22.8m from $26.2m in the prior year due to lower gross profits and higher selling costs, partially offset by lower interest expense.
However, fourth-quarter sales rose to $872.1m from $831m in 2008. The increase was driven by an improved performance in the company’s gold pineapple and fresh-cut product lines, along with higher sales from the company’s banana division.
In the firm’s prepared foods division, net sales decreased 5% to $89.3m for the fourth quarter thanks to lower sales from its company’s canned pineapple and beverage product lines. For the year, sales from the division dropped to $337.4m from $412.4m in 2008.
“We delivered a solid fourth quarter, particularly in the face of a prolonged economic slowdown which affected profitability in our Europe and Asia banana businesses,” said chairman and CEO Mohammad Abu-Ghazaleh. “Our primary objectives for 2010 are to continue expanding our core product lines, controlling costs, and maintaining our commitment to increase shareholder value over the long-term.”
Operating income for the year dropped to from $170.6m to $148.2m, while for the fourth quarter, the figure increased to $34.3m from $26.9m in 2008.
Click here for the complete full-year statement and click here for Fresh Del Monte’s plans to expand in Asia.
