Revenue during the quarter went up marginally by 1.51 percent to $950.20 million from $936.10 million in the previous year period. Gross margin for the quarter expanded 360 basis points over the previous year period to 12.50 percent. Total expenses were 95.36 percent of quarterly revenues, down from 96.33 percent for the same period last year. This has led to an improvement of 97 basis points in operating margin to 4.64 percent.

Operating income for the quarter was $44.10 million, compared with $34.40 million in the previous year period.

"We are very pleased with our strong financial performance in the third quarter of 2016," said Mohammad Abu-Ghazaleh, chairman and chief executive officer. "Our performance demonstrates the strength of our diversification strategy and the results of the efficiency improvements and cost-control initiatives we put in place over the past couple of years to increase profitability and position ourselves for sustainable growth. Increased sales in our avocado, fresh-cut and pineapple product lines collectively drove our financial performance during the quarter, along with improved global banana selling prices, and lower commodity costs. Given the strength of our business model and our focus on continuous performance improvements, we believe we are well positioned to deliver value to Fresh Del Monte's shareholders over the long-term."

The company has spent $94.50 million cash to meet investing activities during the nine month period as against cash outgo of $83.90 million in the last year period. It has incurred net capital expenditure of $87.40 million on net basis during the nine month period, up 4.17 percent or $3.50 million from year ago period.

The company has spent $240.20 million cash to carry out financing activities during the nine month period as against cash outgo of $156 million in the last year period.

Cash and cash equivalents stood at $23.20 million as on Sep. 30, 2016, down 45.54 percent or $19.40 million from $42.60 million on Sep. 25, 2015.

Working capital declines
Fresh Del Monte Produce Inc. has witnessed a decline in the working capital over the last year. It stood at $557.90 million as at Sep. 30, 2016, down 6.53 percent or $39 million from $596.90 million on Sep. 25, 2015. Current ratio was at 2.49 as on Sep. 30, 2016, down from 2.49 on Sep. 25, 2015.

Days sales outstanding were almost stable at 42 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 25 days for the quarter compared with 50 days for the previous year period.