Chiquita Brands International has returned to a first-quarter profit as the European market stabilised and banana sales rose.
The company said yesterday (5 May) that net profit reached US$24m for the quarter ended 31 March, against a $9m loss in the same period of the previous year.
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On a comparable basis, net income was up to $26m against a $4m loss in the same quarter of 2010. The company attributed the improvement in comparable income to a stronger performance in bananas, although this was partially offset by weaker results in its salads and healthy snacks division and increased income tax costs.
Sales were up 2% to reach $824m, with the company citing an improvement to increased European demand against the “unusual lows” during the first quarter of 2010.
Net sales in its salads and healthy snacks division were down 8% to $238m, which it attributed to a higher take-up of private label products and increased costs caused by adverse weather conditions during the winter lettuce sourcing season in Arizona.
The company is forecasting “relatively flat” year-on-year sales growth, and expects to “significantly improve” its full-year operating profitability.
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By GlobalData“We delivered a turn-around in profitability in the first quarter by executing well and overcoming increased industry costs,” said Chiquita chairman and CEO Fernando Aguirre. “I am particularly pleased with the progress we are making in Europe, and am confident that we can regain prior levels of profitability in the medium and the long-term and maximise our premium brand position.”
