US-based Chiquita Brands International has announced that it returned to profit in the third quarter (Q3) of 2009, the result of improved cost management and an improved pricing strategy to better manage seasonal shifts and the effects of the economic downturn.
In a financial statement, Chiquita said that net income for the three-month period ended 30 September stood at US$5m (€3.4m), an improvement on the loss of US$7m (€4.7m) recorded in the third quarter of 2008.
The group reported that net sales actually fell compared with the corresponding period last year, down to US$801m (€539.2m) versus sales of US$840m (€565.6m) in 2008.
Net sales in the company's banana segment remained roughly flat at US$472m (€317.7m), with sales down by 11 per cent to US$289m (€194.5m) in salad and healthy snacks. Other produce segments saw combined sales of US$40m (€26.9m), compared with US$42m (€28.3m) in the third quarter of 2008.
'Our third quarter results reflect the terrific progress of our diversification strategy and ongoing pricing and cost discipline,' said group chairman and CEO Fernando Aguirre. 'We significantly improved over year-ago results to deliver profitability by driving costs out of the business and adhering to a pricing discipline to overcome some historically seasonal aspects of our business, as well as a tough economic environment.
Mr Aguirre noted that Chiquita's value-added salad business had showed 'significant and sustainable improvement', while the group's focus on consistent execution had delivered strong results in its North American and European banana operations.
He added that the group had been encouraged by its strong momentum, and remained confident that Chiquita would achieve a year-on-year improvement in comparable second-half results.
'Looking ahead, we are well-positioned to capitalise on profitable growth opportunities as we continue to transform into a more stable and predictable banana business,' Mr Aguirre said. 'While we will remain diligent in managing our business for profitability, our attention is focused on growth in new geographies, distribution cannels and innovative products.'
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