Chiquita Brands International has released its financial and operating results for the third quarter of 2013 (Q3), with the company reporting a net loss of US$18m for the period, compared with a loss of US$67m for the same period of 2012.
Operating income was US$1 compared to a loss of $66 million last year, the group revealed, while revenues remained relatively flat at US$723m - growth of 1 per cent.
'We remain confident in our 'return to the core' strategy, and our third quarter results reflect continued progress toward our long-term goals,' said Ed Lonergan, Chiquita's president and chief executive officer. 'We experienced volume and share growth in our North American banana business as our commitment to quality, service and innovation has been rewarded.
'Our European banana business maintained higher seasonal prices while optimising a balanced supply situation that extended well into the third quarter,' he added. 'In our salad business, we grew volume and market share for the second consecutive quarter. However, we continued to face certain headwinds with raw product costs and our Midwest plant consolidation.'
For bananas, comparable net sales increased 3 per cent to US$458m, primarily due to higher local pricing in Europe and higher banana sales volumes in North America, partially offset by lower volumes in Europe. Operating income was US$18m for the quarter compared to a loss of US$2m for the third quarter of 2012.
Meanwhile, in salads and healthy snacks, net sales remained consistent year-on-year at US$239m due to higher volume sales of retail value-added salads offset by lower processed fruit ingredient sales and the exit of a European healthy snacking business at the end of the second quarter 2013. Operating loss was US$5m for the quarter compared to a loss of US$27m for the third quarter of 2012.
'The strategic changes Chiquita has made over the past year will enable the company to better withstand the market conditions that we will face for the balance of the year,' Lonergan continued. 'We currently see an excess banana supply situation that has already impacted weekly market pricing in Europe. In addition, the salad industry is facing unfavourable growing conditions, which will impact costs and yields in our agricultural operations.
'We remain focused on execution and while these headwinds are expected to negatively impact our fourth quarter and full year results, we believe we remain on target to achieve our long-term operating margin objectives within our planned timeframe.'
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