Fyffes set for strong growth in earnings
At the company’s annual general meeting in Dublin yesterday, chairman Carl McCann said market conditions remain favourable, particularly in continental Europe.
He said the company was also benefiting from the first contribution from its Swedish business Everfresh, which it acquired last year.
“The group continues to pursue price increases to address the lower margins being achieved in its UK/Ireland operations and the significant cost inflation being experienced by the industry.
“Given this positive start to the year, and notwithstanding the strong performance recorded in the second half of 2004, Fyffes is now targeting a double-digit increase in adjusted earnings per share for the full year in 2005,” Mr McCann told shareholders.
Asked by one shareholder if the company would return some of the €162 million in cash on its books to investors, Mr McCann said it believed the money was better used to fund acquisitions.
The company would not comment on the final cost of the insider dealing action it has taken against former shareholders DCC.
It is believed that Fyffes will spend about €4m this year on the case, having spent €4.1m in 2004.
Fyffes also announced yesterday that Denis Bergin, a veteran non-executive director and a former legal adviser to the company, will step down from the board at the end of this year.
