First-half profits for fruit importer Fyffes have been knocked by losses at its melon joint venture in Brazil - with an 11 per cent drop reported.
Fyffes, which made its general produce division into a separately quoted spin-off - Total Produce - last year, said pre-tax profits for the six months to the end of June were €15.2 million, compared to €17.7m last year.
The importer recorded a €2.8m loss from its share of the Brazil-based melon producer Nolem, in which it has a 60 per cent stake.
“Significant internal resources have gone into addressing Nolem’s business in order to deliver an improved result in the forthcoming season,” the company said.
Total revenues for the period were up 45 per cent, to €286.5m.
Fyffes is forecasting full-year earnings before interest and tax of around €15m.
The importer intends to double revenue through organic growth and further acquisitions across its key product categories by 2011 through organic growth and further acquisitions and alliances.
Fyffes was able to write-back €7.5m costs incurred through legal fees in its insider dealing action against former shareholder DCC, after the Supreme Court overturned its decision in July. The costs will be recovered from DCC and Fyffes is also in line for compensation of up to €85m.
Fyffes said it now intends to fight claims by the European Union that it engaged in cartel activities with other banana importers.
Total Produce will release its interim results tomorrow.
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