David McCann

David McCann

Fyffes achieved a slight rise in operating profit last year, with chairman David McCann hinting at further investments.

The fruit importer recently acquired a one-third shareholding in German importer Fruchtimport vanWylick.

The company achieved a small annual rise in adjusted pre-tax profit to €21.3 million during the course of the year, it revealed in its newly-published annual report for 2010.

The company’s net profit for 2010 came in at €7.3m, a notable improvement on the previous two years, when it made a loss after tax of €9.9m (2009) and a small net gain of €380,000 (2008).

“Having delivered a strong increase in [adjusted pre-tax] profits in 2009, the best since the ending of European banana import regulations in 2005, Fyffes was pleased to achieve a further increase in profits in 2010,” said McCann. “In the context of the difficult trading conditions which persisted in the banana category for much of the first half of the year, this result represents a very satisfactory outcome for 2010.”

McCann also said the recent acquisition of a stake in vanWylick was “an important development” for Fyffes which would offer the group “significant opportunity” for international growth.

He also suggested that further investments during the coming 12 months were a real possibility.

“The board is focused on continuing to grow and develop the business and is exploring other interesting opportunities to invest the group’s resources,” he said.

Fyffes indicated earlier this year that its target EBITA for 2011 was in the range €17m-22m.

“Market conditions have been satisfactory in the first two months of the year. Fyffes operates in a low-margin sector which requires the group to maintain a high level of efficiency in its day to day activities,” added McCann.

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