Chiquita has announced triumphant results for 2005 despite severe losses.
The company reported a net income for the year of $131 million, or $2.92 per share - up from $55 million, or $1.33 per share for 2004.
This result comes in spite of a difficult final quarter for Chiquita last year, which saw a net loss of $19 million.
The sum takes into account the $23m losses declared following flooding in Honduras caused by tropical storm Gamma in November and the consolidation of fresh-cut fruit facilities in the US’ Midwestern region.
has announced for the last quarter of 2005.
Commenting on the report, Chiquita chairman and ceo Fernando Aguirre, said: “We had a terrific year in 2005. In fact, we realized the best annual financial results in more than a decade in spite of fourth quarter challenges of flooding in Honduras, the impact of a lower year-over-year euro-dollar exchange rate and continuing high costs for fuel and ship charters.
“The European Commission's decision to more than double its tariff on Latin American banana imports on Jan 1, 2006, will result in higher costs and market uncertainty. However, we are committed to overcoming these challenges and winning in the European market in the long-term with our clear brand leadership and excellent customer relationships.”
Last quarter Chiquita invested $20 million in consumer marketing and innovation spending in Europe to reinforce its brand premium in advance of the tariff change.
“Consumers can continue to expect Chiquita to offer better bananas, and our retail partners can continue to count on us to deliver consistently high quality products, superior service and innovation,” Aguirre said.
