Lower sales volumes of fresh mangoes and preserved white asparagus hurt the financial results of Peruvian produce company Camposol in the first quarter of 2015, with EBITDA dropping 79.7% to US$1.5 million. 

A report from the group said increasing costs of shrimp and preserved peppers had also eaten into the profits.

Despite the poor EBITDA result, both overall sales volume and value saw increases.

Volumes were boosted by an increase in seafood products and blueberries, rising 0.9% to 24,598 metric tons (MT), while sales value grew 18.6% to US$71.7 million thanks to stronger performances of seafood and peppers.

The average cost of goods sold during the first quarter of 2015 was US$2.42 per kilogram, putting it 37.5% up year-on-year. Cost increases for asparagus, shrimp and peppers were cited as the main reasons behind the rise.

Looking at the asparagus category, the fresh segment fared well with sales volumes up 5.4% with 1,847MT, and average sales price rising 2.1% to US$4.74 per kilogram.

The slightly smaller preserved segment, however, saw a 28.6% drop in volume against a 6.9% price increase.

In the financial period, total gross margin for asparagus was 23.5%, down 8.1 percentage points year-on-year.

Camposol's volumes of fresh mangoes also fell 22.7% to come in at 6,957MT. During the first quarter total gross margin for mangoes was 34.9%, down five percentage points year-on-year.

Although the organization's earnings took a tumble this period, it said long term growth prospects for exotic fruits and vegetables markets were 'excellent'.

"Avocados and blueberries consumption is growing, with headroom for increased per capita consumption in key markets. In the case of asparagus, although consumption is stable, supply is falling due mainly to reduced exports from China," the group said in its report.

"The Company expects good demand for all fresh produce in general and for avocados specifically in both the United States and Europe.

"The Company expects to continue its diversification strategy by increasing the production capacity of blueberries and shrimp and other minor related products."

The organization added it was currently focused on adding value to its clients through commercial, marketing and service initiatives which should result in higher margins.

"Additionally, CAMPOSOL is analyzing new opportunities to consolidate its leadership through additional planting of current crops, planting of new crops, strategic alliances and acquisitions," the group said.

"CAMPOSOL will continue positioning itself in the US market, the largest and fastest growing market for avocados in the world, open for Peruvian produce since 2011 and in other markets with high growth potential."

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