Following a first quarter when net income fell by nearly half at Fresh Del Monte Produce (NYSE: FDP), the U.S.-based multinational has reported a year-on-year fall in profits again in the second quarter.

However, the decline was less pronounced than the previous period, and net sales were still up 5.4% at US$1.15 billion.

Net income was down 28% at US$69.2 million, with the fall driven by a 12.6% drop in gross profit for bananas and a whopping 46.8% decline in gross profit for the prepared food segment.

Despite the challenging result, chief executive officer Mohammad Abu-Ghazaleh saw positive signs.

"We’re glad to report that Fresh Del Monte achieved strong sales growth during the second quarter," said the executive.

"External challenges such as oversupply of bananas in Asia and the Middle East markets, lower sales volume of canned pineapple and lower pineapple concentrate selling prices negatively impacted our overall performance. 

"However, our broad range of products and businesses, and geographic reach helped us mitigate these challenges, while continuing to grow our business."

He reiterated his point claiming the company's future has "never been brighter".

"Our recently announced joint ventures with Del Monte Pacific Limited are expected to provide us with tremendous potential to rapidly expand our lineup of healthy, convenient, fresh and ready to eat products," he said.

"Looking forward, we remain confident in our ability to tap future opportunities to drive profitability and shareholder value over the long-term."

www.freshfruitportal.com