Chiquita Brands International yesterday (30 October) posted an improved third-quarter performance, boosted by strong banana sales, a gain from the repurchase of senior notes and pricing initiatives.
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The US-based fresh produce group posted a net loss of US$5.6m, or $0.13 per share for the three months to the end of September. The result compared to a net loss of $28.2m, or $0.66 per share, in the comparable period of fiscal 2007.
Third-quarter net sales rose by 7% to $840m, up from $785.2m last year. Higher banana pricing boosted sales in North America, while the favourable exchange rate offset lower volumes in European markets, the company said.
Banana sales were up 13% year-on-year, rising to $473.5m. However, costs at the group’s banana business were also higher: up by $44m.
Sales gains in the group’s salads and healthy snacks unit were more modest, rising only 1.7% to $324.7m.
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By GlobalDataFernando Aguirre, chairman and chief executive officer, said: “Our pricing discipline and focus on profitability has improved the year-on-year performance of our banana segment for the fifth consecutive quarter, which more than offset lower results in our salad operations.”
The third-quarter result also included a $10m gain – or $0.22 per share – from the repurchase of senior notes.
Over the first nine months of 2008, Chiquita reported net income of $88.2m, or $1.98 per share, compared to a loss of $23m or $0.54 per share for the first nine months of last year.
Chiquita also said that it expects declining fuel prices to mean industry costs will fall in the full year. However, the company predicted that this would be offset by a rise in supply costs.
