Chiquita Brands International saw its operating profit fall in the first half of the year on the back of a drop in revenues from salads and healthy snacks.
For the six months to the end of June, operating profit slid by 50.8% to US$56m. Its net income climbed by 20% to $102m but included an income tax benefit of $72m.
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Sales in the period amounted to $1.69bn, a 1.7% decline on last year.
For the second quarter, its net income slid by 17.9% to US$78m, while operating profits plummeted by 86% to $14m.
Sales in the period also fell, to $870m, a 5% decline on the prior-year period.
“Our second-quarter results reflect the challenges we highlighted previously,” said Chiquita CEO Fernando Aguirre. “As expected, salad volumes in the second quarter were lower than last year. However, the combination of our marketing investments, fresh rinse technology and better cost efficiencies are already delivering new distribution points which will result in better volume comparisons the rest of the year.”
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By GlobalDataThe company said it remains on track to achieve a net sales increase of “at least” 3%, as well as “significantly improved” comparable operating profitability for the full year 2011.
