Cincinnati, Sept. 16 - Chiquita Brands International, Inc. today reported significant year-over-year increases in banana prices in all markets for July-August 2008 on volumes that were flat overall.
In its Fresh Express value-added salads business, the company reported a year-over-year improvement in both net revenue per case and volume during the two-month period.
"We are pleased that banana pricing remains favorable as we continue our pricing discipline to help offset higher industry costs," said Fernando Aguirre, chairman and chief executive officer. "Volume remains roughly flat overall, reflecting continuing industry-wide supply constraints across much of Latin America, which has substantially raised the cost of sourcing high-quality fruit."
Banana Segment
Year-over-Year Percentage Change (1)
July-August 2008 vs. July-August 2007
% of Total
Pricing Volume(2) Volume Sold
North America +33 % +2 % 45 %
Core European Markets (3)
U.S. dollar basis (4) +18 % (5%) 33 %
Local currency basis +4 %
Asia Pacific and the
Middle East (5) +12 % +17 % 18 %
Trading Markets (6) +41 % (15%) 4 %
1 These statistics may not be indicative of future results.
2 Total volume sold includes all banana varieties, such as Chiquita to
Go, Chiquita minis, organic bananas and plantains.
3 The company's "core" European markets include the 27 member states of
the European Union, Switzerland, Norway and Iceland.
4 Prices on a U.S. dollar basis do not include the impact of hedging.
5 The company primarily operates through joint ventures in this region.
6 The company's trading markets are mainly European and Mediterranean
countries that do not belong to the European Union.
North American banana pricing was up 33 percent, including surcharges. Banana volume sold in the region increased 2 percent. Volume growth was limited due to substantially constrained industry-wide volume, which has significantly increased the cost of sourcing high quality fruit.
Banana prices in the company's core European markets were up 4 percent year-on-year on a local currency basis, or 18 percent on a U.S. dollar basis. Volume sold in the core European markets was down 5 percent year-over-year for the period, due to the constrained industry-wide volume availability, the company's cancellation of some lower-price contracts that were no longer sufficiently profitable in a rising cost environment, and the company's continuing strategy to focus on its premium quality product and price differentiation rather than market share.
In Asia Pacific and the Middle East, pricing rose 12 percent year-over-year on a U.S. dollar basis, while volume sold in these regions increased 17 percent due to improvements in weather conditions and farm productivity in the Philippines.
In the company's trading markets, which consist primarily of European and Mediterranean countries that do not belong to the European Union, pricing rose 41 percent year-over-year. The company's volume in this region declined 15 percent, reflecting industry-wide supply shortages.
Salads and Healthy Snacks Segment
Year-over-Year Percentage Change (1)
July-August 2008 vs. July-August 2007
RETAIL
VALUE-ADDED SALADS Net Revenue Per Case (2) Volume
North America +5 % +1 %
1 These statistics may not be indicative of future results.
2 Net revenue per case includes fuel-related surcharges.
In retail value-added salads, net revenue per case increased 5 percent year-over-year, while volume growth was 1 percent during the period.