Chiquita Brands International has released its financial and operating results for 2011, with full-year comparable income rising to US$38m (€28.7m) from US$36m (€27.2m) in 2010.
Net sales through the year came in at US$3.1bn (€2.3bn), down 3 per cent from the previous year, hit by lower sales in salads and healthy snacks (down 7 per cent to US$935m, or €706m) and other produce, partially offset by higher banana sales (up 4 per cent to US$2bn, or €1.5bn).
'We delivered a fourth consecutive year of comparative profitability, improving our results over last year, particularly in the fourth quarter, which benefited from our efforts to drive down costs as well asfrom the refinancing activities we completed earlier in the year,' saidchairman and chief executive officer Fernando Aguirre. 'We had a much better year in bananas driven by higher pricing and volume in North America, and initial recovery in Europe. Our salads business did not perform as well as expected and we've taken a number of corrective actions and adapted our structure and strategy to be more successful andprofitable.'
For the fourth quarter of the year, Chiquita narrowed its comparable loss from US$18m (€13.6m) in 2010 to US$6m (€4.5m), including US$8m (€6m) in charges relating to the company's move to its new headquarters in Charlotte, North Carolina.
Quarterly sales dropped 7 per cent year-on-year to US$722m (€545m), primarily due to the exit from low margin other produce products, as well as slight declines in banana and salad sales.
Net sales for bananas dropped 2 per cent to US$475m (€359m), while salad and healthy snack sales fell 3 per cent to US$223m (€173m).
Looking ahead, the group said that while it was expecting obstacles from ongoing industry cost inflation and weaker European currencies this year, it is seeking to grow profitability through increasing sales volumes, enhancing banana supply chain efficiencies and avoiding excess salad sourcing and manufacturing costs, among other measures.
'Going forward we are focused on growing revenues and profitability in core banana and salads products, using our existing capacity and capabilities to enter new markets and providing a more comprehensive product offering,' Aguirre continued. 'We will continue enhancing the efficiency and flexibility of our supply chain and removing costs from our business.
'We have made solid progress in realigning our salad business structure, reconfiguring banana shipping, reducing debt and consolidating our corporate structure through our move to Charlotte,' he added. 'We are looking forward to another year of progress in improving the foundations of our business and its long-term profitability.'
