Beleaguered multi-national Chiquita has found a return to form with its best first-quarter results in 10 years. “Chiquita achieved its best quarterly results in more than a decade, as we successfully expanded volume in our core banana business, enjoyed strong pricing in Europe and North America and benefited from favourable foreign exchange,” said Fernando Aguirre, Chiquita chairman and ceo.
Net income was $87 million compared to $20m for the same period in 2004. Net sales rose 17 per cent to $932m with bananas accounting for $520m of that - up 24 per cent on the previous year. Operating income in bananas was triple that of last year. Strong prices in Europe accounted for $33m of the hike. Price increases because of Panamanian and Costa Rican floods in January this year also boosted the result, although the floods cost the company $8m in terms of alternative sourcing, logistics, farm rehabilitation and write-downs of damaged farms. The total loss in supply was some 3m boxes of bananas mostly in the first half year.
Chiquita’s planned acquisition of US prepared salads specialist Fresh Express is scheduled to go ahead in the second half of 2005 despite a delay in the announcement of results from last month as investigations are carried out into employee conduct related to the acquisition.
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