Fresh Del Monte Produce Inc. reported financial results for the first quarter that ended March 27, 2009.
Net sales for the quarter decreased 2% to $879.7 million, compared with $894.9 million in first quarter 2008. The $15.2 million decrease in net sales was primarily due to lower sales in the company’s prepared food business, principally in the United Kingdom and other products and services business segment. The decline in net sales was partially offset by higher banana selling prices in the North America, Asia-Pacific, and Middle East regions.
Gross profit for the quarter was $83.8 million, versus gross profit of $96.9 million in first quarter 2008. The 14% decrease in gross profit was primarily due to lower selling prices in the company’s other fresh produce business segment, primarily the result of a decline in melon selling prices in North America and lower gold pineapple selling prices in Europe.
Operating income for the quarter fell 18% to $46.9 million, compared with $57.5 million in the prior year.
Net income for the quarter was $35.3 million, in contrast to $68.2 million in first quarter 2008. The decrease in net income reflects lower gross profit and a foreign currency loss of $6.1 million in first quarter 2009, compared with a foreign currency gain of $10.9 million in first quarter 2008.
