Multinational banana giant Chiquita has reported strong first quarter results for 2008, and claims improved banana pricing has more than offset rising costs.

First quarter net sales increased seven per cent year over year to $1.3 billion (£656 million), and the company reported net income of $32m, including a charge of $9m, for the write-off of deferred financing fees as a result of the company's successful refinancing during the quarter.

In the year-earlier period, the company reported a net loss of $3m, including a charge of $5m, related to the exit of certain unprofitable farm leases in Chile.

Fernando Aguirre, Chiquita chairman and chief executive, said: “Our excellent first quarter represents the third consecutive quarter of year-over-year improvements, and illustrates that we continue to take the right actions to drive profitability in our business. Our brand premium, improved banana pricing, benefits from our business restructuring and continued recovery in value-added salads have enabled us to generate significantly better results. We have demonstrated the ability to overcome cost challenges, and we expect this improvement will continue, particularly in the first half of the year.”

Aguirre added: “We also delivered two other major achievements, which reflect both our financial discipline and confidence in our long-term strategy. We successfully refinanced our capital structure to further strengthen our balance sheet, and signed agreements to develop two major sources of bananas in Africa for our European markets, without investing any capital in owned assets. We will continue to focus on strong execution throughout our operations and to invest in innovative, long-term growth opportunities. These achievements and strong quarterly results are continued evidence that our long-term strategy is working.”

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