Fyffes reports strong results for 2009

FYFFES has reported its strongest profit for four years, but has also lowered its earnings guidance for 2010 due to the impact of the harsh weather in Europe since the turn of the year.

The Dublin-headquartered fruit distribution giant saw pre-tax profits jump by 33.3% — from €15.9m to €21.2m — last year and fully diluted earnings per share jump by 31.4% to 5.19c, although group revenue (inclusive of joint venture shares) fell by over 4% to €726.8m.

Last year’s total dividend for shareholders — of 1.65c per share — marked a 10% improvement on 2008’s figure.

“Fyffes delivered a strong result in 2009 which was its best since the change in European banana import regulations in 2005.

“The group achieved the necessary increases in selling prices to offset the negative impact of higher costs and adverse exchange movements in 2009,” said group chairman David McCann.

However, the company has lowered its guidance for full-year 2010 earnings from the previous €17m-€22m target range to a €14m-€18m range, on account of a slow start to trading this year.

“Trading conditions have been difficult in the first two months of 2010 as a result of the negative impact on demand and pricing of the prolonged period of exceptionally cold weather in Europe and the adverse impact of the strengthening of the US dollar,” said Mr McCann.

He added: “While it’s still early in the year, it’s appropriate and prudent to revise the group’s target EBITA for 2010 in the range €14m-€18m, which was its original target for 2009, to reflect the difficult start.

“The group must achieve increases in average selling prices, in all markets, to offset the impact of unfavourable exchange rates and higher industry costs,” he said.

The fall in group revenue was largely down to the closure of Brazilian company Nolem, Fyffes’ former melon producing joint venture.