Initial fees connected with Fyffes’ planned merger eats into firm’s profits

Initial professional fees connected with its proposed merger with US banana producer, Chiquita, affected profits at Fyffes in the early part of this year, but the Dublin-based fruit distributor has maintained its positive earnings forecast for this year.

Fyffes’ first-quarter results, published yesterday, show an 18.4% annualised rise in adjusted pre-tax profits to €15.8m, with group revenue up 5.4% at €256.7m. Total revenue, when the effect of joint ventures are taken into consideration, was up by 3.4% to €306.5m. Adjusted EBITDA was up by nearly 12% at €17.8m.

Chairman David McCann said the company had delivered “a strong result” in the first quarter of this year; adding that the board still expects full-year EBITDA to come within the €30m-€35m range previously guided.