Fresh Del Monte Produce (FDP), a fresh fruits and vegetable producer and distributor, is reporting higher gross profits across its two most important segments thanks to a methodology change. In its latest quarterly filing, Del Monte inserted new language revealing it has reclassified COGS between its three segments.

With little detail other than attributing the change to a “refinement” in its cost allocation methodology, the change shifts costs once allocated to the company’s two biggest segments to its much smaller “Other Products” segment.

In the latest quarter the change:

— Increased gross profit in the Fresh and value-added products by $0.7 million
— Increased gross profit in the Banana segment by $1.3 million
— Decreased gross profit in the Other products and services segment by $2.0 million

The Fresh and value-added products segment generated 56.9% of Del Monte’s revenue in the latest quarter. The Banana segment generated 36.8% of sales in the latest quarter.

Shifting costs to the company’s smallest— and least important segment— makes Del Monte’s two key segments appear healthier than they are.