Fyffes sees record six-month earnings
The fruit importers said pre-tax profits rose 17.6% to €69.3 million in the six months to end June on the back on strong sales of bananas and pineapples.
The company said the record performance in the first half of the year continued into July and August.
“Taking into account the performance in the second half of last year was very strong and given the significant cost inflation in the industry, particularly in relation to fuel costs, Fyffes is currently targeting an increase in adjusted earnings per share, for the full year in the high teens in percentage terms,” Fyffes chairman Carl McCann said.
Group turnover for the period was ahead by 17.7% at €1.1 billion. Excluding figures from the Everfresh acquisition, turnover was ahead by 6.4%.
The tropical product division, where the bulk of profits comes from banana sales, achieved “strong” results, mainly from sales growth in mainland Europe. Sales volumes in Ireland and Britain were flat.
Fyffes added: “The group continues to expand its supersweet pineapple business. Volumes in the first six months of 2005 increased by more than 50% compared to the same period last year.”
The general produce division delivered a satisfactory performance, though volumes were slightly lower than the first half of 2004, excluding the impact of acquisitions.
“This was offset by a modest improvement in average prices during the period,” the company said.
Having made over €14m in profits on property disposals in the first half of last year, there was no repeat figure in 2005. However, Fyffes said it “remains focused on maximising the value of its property assets and hopes to continue to generate further significant profits and cash from these activities over the medium term.”
The ongoing insider dealing case against DCC cost Fyffes €4.3m in the first half of the year.
The company will also take a one-off charge of €6.8m in its accounts because of the deficit in the British Merchant Navy Officers Pension Fund to which it is a contributor.
Fyffes said it was co-operating with the EU investigation into banana and pineapple markets and conformed EU officials visited its offices earlier in the year.
Shareholders will receive an interim dividend of 1.69 cents.
Fyffes shares gained 2c to close at €2.57 yesterday.
