Chiquita Brands International saw earnings fall in its second quarter but its CEO expressed confidence over the produce giant’s ability to improve its profitability.
The company reported net income of US$18m for the three months to the end of June, down from $31m a year earlier. Its operating income hit $37m against $41m in the second quarter of 2013.
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Costs linked to the merger with Fyffes were among charges that hit Chiquita’s operating profit. The company said its adjusted EBITDA was up from $58m in last year’s second quarter to $62m.
Net sales rose during the quarter to $826m.
President and CEO Ed Lonergan said Chiquita’s results had improved when compared to a first quarter hit by weather, even if dry conditions in Central America did hit costs.
“We realised value and volume sales increases in our banana operations, but reduced productivity, principally due to dry weather, on both owned and third-party farms in Central America resulted in higher sourcing costs and less fruit to sell in our weekly pricing markets, principally in Europe and the Mediterranean. In our retail salad segment, we delivered promised efficiency benefits from our Midwest plant consolidation and mix-driven pricing improvement in the quarter,” Lonergan said. “We remain confident in our ability to grow this business profitably and expect to benefit in the second half of 2014 from the pricing and efficiency initiatives announced in May and which became effective in July.”
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