Chiquita Brands International has outlined a stronger set of both fourth-quarter and full-year results for 2009, while also looking ahead to an improved year in 2010.
The final quarter of the year saw the group post a net loss of US$26m, a considerable improvement on the loss of US$413m recorded in the same period of 2008, boosted by a net sales increase to US$879m from US$839m during the previous year.
This stronger fourth quarter helped Chiquita push full-year net income to US$91m in 2009, or US$2.02 per diluted share, compared with a loss of US$330m during the previous 12 months.
Yearly net sales fell fractionally to US$3.5bn from US$3.6bn in 2008, the group said, primarily as a result of the exit from certain unprofitable foodservice volumes in the North American salad business.
By segment, net sales for bananas increased 1 per cent to US$2.1bn thanks to improved local pricing in core European and North American markets, coupled with higher sales in the Mediterranean and Middle East.
Salads and healthy snack sales fell 13 per cent year-on-year during 2009 to US$1.1bn, with other produce sales climbing to US$253m from US$244m in 2008.
'We doubled our profitability in 2009 despite the difficult recessionary environment by focusing on cost control, pricing discipline and relentlessly executing our initiatives,' said group chairman and CEO Fernando Aguirre. 'We are very pleased with the dramatic turnaround in salads. The sustained profitability of our North American banana business and structural improvements in our salads business helped diversify our company in both revenue and profitability, while reducing volatility.'
Looking ahead to 2010, Chiquita is anticipating improved full-year results through growth, profit improvement and cost reduction initiatives, despite challenges from the 'relatively weak' global economy, and is targeting revenue growth of 3-5 per cent.
'We expect to continue improving our profitability as we target to deliver comparable income of US$110m-US$120m in 2010, while growing our revenue between 3-5 per cent,' Mr Aguirre added. 'Our target is to continue growing both revenue and profits through a combination of pricing, discipline, distribution gains, new products and a relentless focus on cost control, while further extending customer loyalty of our well-known premium brands.'
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