Chiquita's losses soar in Q1

For fresh fruit and vegetable marketing and distribution in Asia
Carl Collen

BY CARL COLLEN

Chiquita's losses soar in Q1

Fresh produce giant sees drop in sales, while terminated Fyffes deal hits first quarter expenses and group lays off 300 in Latin America

Chiquita's losses soar in Q1

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Chiquita Brands International has this week reported its results for the opening quarter of 2015 ended 31 March, in a US Securities and Exchange Commission form.

The fresh produce multinational showed that its net loss had more than doubled on a year-on-year basis, down from US$24.6m last year to US$64.6m.

The group was impacted by lower net sales through the three-month period, coming in at US$725m, compared with US$762m in the same quarter of 2014.

In Chiquita's consolidated financial statement, the company – which is being acquired by Brazilian groups Safra and Cutrale in a US$681m deal – reaffirmed its previously announced restructuring and relocation plans, with all of its operational departments and remaining corporate services to be transitioned from Charlotte, North Carolina, to other locations closer to customers and operations.

The transition is expected to be completed over a period of twelve to eighteen months from the announcement date (14 January), and total costs associated with the transition are anticipated to be in the range of US$25m-US$40m.

Further costs were incurred in connection with the merger agreement and the terminated Fyffes strategic combination, with incurred legal, advisory and other expenses totaling US$48m.

Chiquita also revealed that it had made a 'reduction in the workforce' in Latin America through January and February, impacting approximately 300 employees and costing some US$5m in severance fees.

 

 

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