Tropical fruit company Fyffes has revealed it is poised to achieve a better-than-anticipated profit this year thanks to a strong performance in the European banana market during the final months of 2010.
In a statement, the group said it expected its adjusted earnings before the deduction of interest, tax and amortisation charges (EBITA) for 2010 would be in the range of €19m-€20m, compared with the €14m-€18m previously indicated.
It cited good selling prices for bananas in the continental European market towards the end of the year as the main reason for revising its estimate upwards.
'Fyffes expects to deliver a mid-single digit percentage increase in its adjusted EPS (earnings per share) for 2010 compared to the 5.19 cent in 2009, reflecting the additional benefit of a lower minority interest charge for the year,' the statement continued.
In 2011, both the banana and pineapple trades are likely to face higher costs due to less favourable exchange rates and increased bunker fuel prices, the group added.
'Fyffes believes higher selling prices will be required in all its markets,' it said. 'Fyffes is targeting an adjusted EBITA for 2011 in the range €17m-€22m.'
