Peru's leading agri-exporter saw a 417% year-on-year surge in profits for the first quarter of 2016, despite a significant fall in export volume.

In an announcement yesterday, Lima-based Camposol Holding Ltd said it notched an EBITDA of US$7.7 million, with a margin that was up by 9.8 percentage points.

The Company sold 19,878 net metric tons (MT) during the period, down 19.2% year-on-year which was explained by the decrease in asparagus, peppers and artichokes that came with its exit from the preserved business.

Additionally, Camposol recorded less volume of grapes, shrimp and other seafood products, while volumes were up in blueberries and mangoes.

During the period, the company also invested US$6.6 million - more than half its total investments for the quarter - in 540 hectares of blueberries, as well as US$2.2 million in permanent plantations for blueberries, avocados and other crops.

Recently, the company's shareholders confirmed their support for a plan to raise its total financing facility up to US$30 million, thorugh a loan of US$10 million and a working capital credit line of up to US$20 million for use if required.

In the announcement, Camposol said it planned to continue its diversification strategy by increasing the blueberries production in the Fruits & Vegetables (F&V) segment and by increasing the conversion of shrimp ponds in the Seafood segment.

The Company also expects to continue to reinforce the Trading segment through more direct sales to retailers, adding value to its clients through commercial, marketing and service initiatives, which should result in higher margins.

"First quarter results were good and in line with our expectations," said Camposol CEO Manuel Salazar.

Outlook

Camposol said the long-term growth prospects for exotic fruits and vegetables markets wee excellent,

"Avocados and blueberries consumption is growing, with headroom for increased per capita consumption in key markets," the company said.

"In the case of asparagus, although consumption is stable, supply is falling due mainly to reduced exports from China. The Company expects good demand for all fresh produce in general and for avocados specifically in both the United States and Europe."

Related stories: Peru: Camposol makes preserved business exit official

Peru: Blueberries now a "nine-month business" for Camposol

Peru: El Niño will affect 2016 avocado season, says Peruvian exec

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