Tropical fresh produce importer and distributor Fyffes has reported on a strong first half of 2009, with adjusted profit before tax climbing 18.6 per cent to €18.6m, compared with €15.7m last year. Adjusted earnings before interest and tax increased by 16.4 per cent to hit €18.1m.
Group revenue excluding share of joint ventures grew by 11 per cent through the six-month period to €335.3m, with Total revenue remaining flat at €400m, Fyffes said.
'During the first half of the year, Fyffes' key input costs were 20 per cent higher, including the negative impact of exchange rates,' said group chairman David McCann. 'The group has focused on the recovery of higher industry costs, achieving increases in average selling prices, and has also benefited from its currency hedging. As a result, Fyffes is reporting a strong increase in profits and earnings per share for the period.'
Sales in the banana category jumped by 4 per cent compared with the first half of 2008 with the group achieving higher selling prices, but this was partially offset by a 1.7 per cent reduction in volumes and the impact of exchange rates on sterling denominated revenues.
Market conditions, particularly in continental Europe, were favourable, according to the group, with banana activities delivering a €2.9m increase in profits. Fyffes' pineapple operation resulted in a small operating profit, while 'ceased operations' at Nolem in Brazil did not prevent the group's winter melon category achieving a 'satisfactory profit'.
'Trading conditions in continental Europe during the summer months have been better than anticipated and, as a result, Fyffes is increasing its target-adjusted EBIT for the full-year to the range €18m-€22m,' Mr McCann added. Fyffes continues to pursue increases in selling prices in all markets in the context of higher industry costs.'
The group recently celebrated the 80th anniversary of its brand, having first placed its distinctive blue label on imported bananas on 16 July 1929.
