Fyffes sees revenue rise by 14.5%

Fruit distributor Fyffes has reported earnings growth of over 10% for 2011, with revenue for the year up by 14.5%.

The Dublin-based group said its 2011 figures came in towards the top end of its target range with chairman David McCann noting “good organic growth across each of our product categories”.

Earnings before interest, tax, depreciation and amortisation (EBITDA) — excluding the group’s share in its property spin-off, Balmoral Land International — was up by 10.1%, at €29.6m. Revenue went from €742.1m to €850m.

Pre-tax profits rose by nearly €4m — from just under €8.8m to nearly €12.5m. Last year also saw a 10% rise in diluted earnings per share, to 6.05c; while the total dividend for 2011 amounts to 1.925c; 10% higher than the previous year.

Last year’s growth was aided by higher pricing and higher volumes for its main products — bananas and pineapples. It also came against a background of rising fuel costs. Fyffes also wrote-down its carrying value of its investment in Balmoral Land to €50,000, which led to an impairment charge in its latest group income statement, of €2.4m.

In terms of current trading, Mr McCann said: “The group has had a positive start to 2012, with improving pricing in continental Europe.” He said the Fyffes board is targeting EBITDA, for this year, in the range of €22m to €27m.

“The group continues to pursue necessary increases in selling prices to off set the impact of significant cost inflation, particularly bunker fuel. Fyffes is also focused on growing the group further, through strategic acquisitions and alliances.”

Although management remains on the look-out for acquisition opportunities, the group slipped into debt last year — going from a net cash position of €37.1m, at the end of 2010 to a net debt position of €1.2m at the end of last year — on the back of a significant investment expenditure outlay of €33.8m.

Its pension scheme deficit also increased, from €13.8m to €21.7m.

Liam Igoe of Goodbody Stockbrokers said: “This year has got off to a positive start, with banana pricing ahead of last year. Given the positive out-turn in 2011, we’re likely to upgrade our 2012 earnings per share forecast from 5.5c currently to the 6c-to-6.5c range.”