Fresh produce multinational Fyffes has reported favourable market conditions during the final months of 2012 reflecting, in particular, continuing supply constraints in the banana category, according to a press statement from the company.
Consequently, the group expects its earnings before interest, taxes and amortisation (EBITA) for 2012 to be towards the upper end of its current range of €28m-€33m and, as a result, the firm is narrowing this target range to €30m-€33m.
The expectation represents a “very strong performance” for the year, Fyffes explained, with an anticipated increase in earnings of 29-42 per cent against the €23.2m achieved during 2011.
Fyffes said the percentage increase in earnings per share is expected to be 37-52 per cent, reflecting the additional positive impact of the shares repurchased in 2011.
“Fyffes remains positive about the future prospects of its business and is well placed to achieve further growth based on the strategic and operational advances made in recent years,” the company noted.
The industry will once again experience cost inflation in 2013 and, as a result, the company pointed out that higher selling prices will be necessary in all markets.
Fyffes’ initial EBITA target for 2013 is in the range of €27m-€33m.
