Lower per unit costs and higher volumes created the perfect storm for Fresh Del Monte's (NYSE: FDP) banana and pineapple businesses in the first quarter, with expectations for more consistent supply in the year ahead compared to 2015.

The company's net income jumped 92% to US$81.2 million for the period, backed by sales rises in bananas, pineapples, fresh-cut, avocados.

"In our banana business segment net sales increased US$459 million compared with US$454 million in the first quarter of 2015, driven by higher sales volumes in Asia and the Middle East, primarily as a result of some of our expansion in the Philippines coming online," CFO Richard Contreras said in a webcast after the group's results announcement yesterday.

"The increase in net sales was partially offset by lower sales volume in Europe.

"Overall for bananas volume was 2% higher than last year’s first quarter, worldwide pricing decreased US$0.08 to US$14.81 per box, primarily a result of the carryover of strong industry supply in the fourth quarter of 2015."

Chief executive officer Mohammad Abu-Ghazaleh said he hoped pricing would not be affected as negatively in the second half as it has done in previous years, while the company would also continue to look to new production areas - such as Panama - to reduce dependence on third party providers.

"I believe that this year it could be better in terms of volume consistency, that we would not have the huge uptick that we faced last year," said Abu-Ghazaleh, who bought the multinational from embattled Mexican businessman Carlos Cabal Peniche in 1996.

"I hope and I believe that it could be more smooth sailing during the second half of the year," he said, clarifying the comment was in reference to volume, which ultimately had an effect on price stability.

Contreras highlighted world banana unit costs decreased 3% in the period, mainly due to cuts in transportation and fruit costs.

"Gross profit increased US$13 million to US$49 million, compared with US$36 million in the first quarter of 2015,"

Pineapples and avocados on the rise

But the surge in gross profit was greater still for the company's other fresh produce segment, both outright and in percentage terms, rising 52% to US$77.1 million.

"In our gold pineapple category, net sales increased 3% to US$125 million during the quarter due to higher sales in North America, the result of higher volumes. Overall volume increased 4%. Unit pricing was 1% lower and unit cost was 2% lower," Contreras said.

"In our fresh cut category, net sales increased 23% to US$117 million compared with US$95 million in the prior year. The increase was the result of higher sales in all of our regions, driven by increased sales volumes for both existing and new customers, continued expansion in multiple distribution channels, along with higher selling prices in Asia and North America.

"In our avocado category net sales increased 10% to US$44 million compared with US$40 million in the prior year, and we continue to grow our avocado business in North America to meet increased customer demand," he said, adding volume increased 47% in the category but pricing was down by a quarter.

The only lagging businesses were Del Monte's non-tropical segment which saw sales drop 8% due to less stonefruit and table grape supply from Chile, and prepared food which saw net sales fall by 12%.

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