US: Chiquita doubles FY profits
By: just-food.com | 24 February 2010
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Chiquita profits double |
Chiquita Brands International has doubled its annual profits thanks to greater efficiency from the US-based firm's salads business.
In 2009, income on a comparable basis reached US$103m, compared to $49m in 2008. The figure was boosted by increased network and manufacturing efficiencies in salads and lower financing costs, which offset the higher cost of sourcing bananas.
Net sales dropped 4% to $3.5bn, primarily as a result of the exit from "unprofitable" foodservice volumes in the North American salad business, the firm said yesterday (24 February).
"We are very pleased with the dramatic turnaround in salads. The sustained profitability of our North America banana business and structural improvements in our salads business helped diversify our company in both revenue and profitability, while reducing volatility," said Chiquita chairman and CEO Fernando Aguirre.
The company's fourth-quarter losses narrowed in 2009, hitting $23m compared to $33m in 2008. Net sales increased to $879m in the quarter from $839m in 2008.
Aguirre said Chiquita expected to see profits increase again in 2010 and forecast revenue growth of 3-5%.
"Our target is to continue growing both revenue and profits through a combination of pricing discipline, distribution gains, new products, and a relentless focus on cost control, while further extending consumer loyalty of our well known premium brands," Aguirre said.
Sectors: Fresh produce
Companies: Chiquita Brands International
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