Favourable market conditions have led to a strong performance in Europe for banana giant Fyffes, which is now predicting it will top market expectations.

Carl McCann, chairman of the Dublin-based company, said the momentum seen in the opening months of the year had continued throughout the first half.

A statement from the company said: “With the benefit of this very positive start to the year and notwithstanding the strong performance achieved in the second half of 2004, Fyffes' current target for full-year 2005 is an increase in adjusted earnings per share, excluding exceptional items, in the mid-teens in percentage terms, ahead of current market expectations.”

Adjusted earnings for the six months are expected to be as much as 40 per cent ahead of the corresponding period. The group will report its first-half results in early September.

However, McCann said the company was maintaining its focus on improving the profitability of its UK and Irish operations, and taking action against significant cost inflation in those sectors.

The company said it would be investing a further €22 million in new properties across Europe, including Edinburgh. This follows an investment of €30m on properties in Dublin and Dundalk last year.

In Edinburgh, Fyffes is reported to be redeveloping the old fruit market and turning the 8.5 acre site into apartments, moving its trading depot to less valuable premises in the area.

Topics