CHARLOTTE, NC - Chiquita’s profits more than tripled in the second quarter of 2015, ended June 30, 2015, thanks to an improvement in operating income in the company’s core businesses.
Operating income for Chiquita’s bananas segment improved 52.3% to $66 million for the quarter, while its Salads and Healthy Snacks business improved 284.9% to $28 million.
“In the second quarter of 2015, our core Bananas and Salads and Healthy Snacks businesses both performed above the same period of 2014,” the company said of its operating income in the SEC filing.
According to a document filed with the Securities and Exchange Commission (SEC), Chiquita, now privately owned, earned profits of $59.6 million compared to $17.8 million during the same time last year.
For its three business segments, Bananas, Salads and Healthy Snacks, and Other Produce, Chiquita posted net sales of $776.6 million, with a decrease across all three segments. The following is a breakdown of each business in net sales:
- Bananas: $502.2 million, compared to $537 million in Q2 2014
- Salads and Healthy Snacks: $248.1 million, compared to $249 million in Q2 2014
- Other Produce: $26.3 million, compared to $39 million in Q2 2014
“Our Salads and Healthy Snacks segments results reflected increased volume in our retail value-added salads, packaging efficiency, and pricing actions that took effect during the second half of 2014,” said Chiquita. “This resulted in increased retail value-added salad pricing inclusive of product mix, partially offset by lower sales volume in our healthy snacks and foodservice segments. The segment also benefited from lower fuel costs and reduced SG&A costs further bolstering strong results.”
As a result of Chiquita’s failed merger with Fyffes, the company also incurred $12 million of costs during the second quarter. As we previously reported, Chiquita has plans to set up a new division headquarters in Orlando, FL following its merger agreement with the Cutrale and Safra Groups.
Other highlights from Q2 2015, compared to Q2 2014, include:
- Net sales decreased on a consolidated basis by 6.0%. In Chiquita’s Bananas segment, the decrease in net sales was driven by lower volume in North America and the impact from foreign exchange offset slightly by higher banana pricing
- Salads and Healthy Snacks segment sales remained flat, year-over-year, as a result of increased retail volume, improved product mix, and more efficient use of trade spend, offset by a decline in sales volume for the healthy snacks, food service, and processed fruit ingredient businesses
- Other produce sales decreased primarily as a result of lower volume
- Cost of sales decreased 10.9% on a consolidated basis. The primary drivers of lower costs were reduced weather impacts as compared to the second quarter of 2014, lower fruit volumes in 2015, and lower fuel costs
Stay tuned to AndNowUKnow as we continue to follow Chiquita’s financial performance in Q3 2015 and beyond.
