Leading fresh tropical fruit importer Fyffes says it will seek 'significant increases' in selling prices in all of its key markets this year as it tries to cope with a major rise in the cost of producing and transporting its products.
In a statement to the Irish Stock Exchange, the group said it expected its adjusted pre-tax earnings to be around €15m for 2008, with year-end cash balances set to amount to €33m.
The company said the anticipated earnings for 2008 were 'at the upper end of expectations' indicated in its previous trading update at the end of last August.
It also pegged its adjusted pre-tax earnings target for 2009 at between €14m and €18m, although this figure depends on the group achieve the necessary increase in average selling prices.
Although down on the adjusted pre-tax profits of €21.9m and €18.4m made by the company in 2007 and 2006 respectively, the forecast figure may well be seen as a strong result in the current economic climate.
'Looking ahead to 2009, there has been a significant adverse movement in exchange rates in recent months as a result of the strengthening of the US dollar, particularly relative to Sterling,' said a spokesperson for the company.
The group also said it expected to see further cost inflation in 2009, with higher fruit and shipping costs only partly offset by lower fuel costs.
'Fyffes is seeking significant increases in selling prices in all key markets,' the spokesperson confirmed.
For the coming year, Fyffes is targeting an adjusted pre-tax profit in the range €14m-€18m
