Fruit distribution firm says profits for 2009 could reach nearly €22m

FYFFES has said that the harsh winter weather had an effect on trading towards the end of last year, but still expects profits for 2009 to come in at the upper end of its previously guided range of between €18 million and €22m.

The Dublin-headquartered fruit distribution giant said yesterday, via a short trading update, that adjusted earnings before interest and tax (EBIT) should come in at between €20m and €21m. Management guided between the €18m and €22m last September. A profit for last year (the 2009 full-year figures are scheduled for publication in March) of anywhere near the upper end of that range would be a significant improvement on the €15.3m generated in 2008.

The adjusted EBIT figure would exclude any exceptional items, amortisation and Fyffes’ 40% shareholding in spin-off property development company, Blackrock International Land.

The statement added that Fyffes’ year-end net cash position should amount to about €37m.

Fyffes admitted the harsh winter had affected trading towards the end of the year – adding also “the exceptional cold spell across Europe is having an adverse impact on current trading in the early weeks of the year”.

The upbeat air surrounding the profit outlook for last year seems to be on the back of Fyffes achieving its required increases in average selling prices in its main markets.

“Looking forward to 2010, the group will continue to pursue higher selling prices to offset increases in input costs,” yesterday’s statement added.

The statement reiterated that the company will continue “to actively pursue a range of potential opportunities in order to invest its resources, with the objective of increasing shareholder value over time” – meaning that management remains on the look-out for good value acquisition opportunities.

Fyffes’ main takeover business last year saw it pay $8m for the pineapple plantation business of Panamanian company Agroindustries Golden West SA.