Multinational produce giant Chiquita has posted a 15 per cent increase in net sales to US$4.5 billion for the full year 2006, but a net loss of US$96 million for the same period, compared to a net income of US$131m in 2005.
The company, which published financial and operating results for the fourth quarter and full year 2006 on Thursday, reported a 9 per cent year-over-year increase in net sales for the fourth quarter to US$1.1bn, but a net loss of US$42m in the same period. This figure included a US$25m accrual related to a potential settlement of a previously disclosed US Department of Justice investigation. This compares to a net loss of US$19m in the year-earlier period.
“”We continued to drive top-line growth in the fourth quarter and, as expected, we began to overcome several significant headwinds that had impacted our results in the third quarter,” said Fernando Aguirre, chairman and ceo. “Net sales increased primarily due to improved banana volume in Europe and higher banana volume and pricing in North America.
“Chiquita continues to face a challenging and evolving environment due to competitive pressures and regulatory changes in the European banana market, as well as lingering consumer concerns about the safety of fresh spinach and packaged salads in the US,” Aguirre continued. “However, we believe the strategic initiatives we have put in place will effectively address these issues and gain momentum in 2007.”
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