Dividend boost for Fyffes shareholders

Fruit and vegetable distributor Fyffes said today it would pay €20m back to shareholders after a strong second half of the year fuelled by demand for tropical fruits in continental Europe.

The Dublin-based group – whose labels include Outspan and Cape as well as Fyffes bananas and pineapples – said the sales had offset inflation, allowing them to pay the dividend which equates to €0.057 per share.

But the company said that 2006 would hold “significant challenges” for Fyffes, with an EU plan to replace its current banana import regulations with a tariff-only regime likely to increase Fyffe’s duty costs by €40m.