Chiquita Brands International posted a greater-than-expected quarterly loss yesterday (1 May) as higher costs, lower European banana prices and a one-off charge took a toll on profits.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The Cincinnati-based distributor of bananas, cut fruits and salad mixes posted a net loss for the first quarter of US$3.4m, down from a net income of $19.5m a year earlier. Net sales were up 3% to $1.2bn. Net banana sales rose 8% but sales of Fresh Express salads and healthy snacks dropped 4%.
The company said that sales at its Fresh Express business were held back by consumer concerns about the safety of prepared salads. This, along with higher costs and issues with the availability of lettuce, are likely to continue to hamper sales into the third quarter, Chiquita said.
During the quarter, Chiquita also booked a $5m one-off charge related to its Chilean operations.
Despite posting an operating loss, Chiquita remained upbeat about its performance during the quarter. “We continued to make good progress in both our banana and salad operations,” said Fernando Aguirre, chairman and chief executive officer.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataChiquita also announced the sale of its 12 refrigerated cargo ships for $227m to an alliance of shipping companies.
