Major fruit and vegetable distributor Fyffes has announced a 17.5 per cent increase in profits for the first half of this year.
Chairman Carl McCann reported “an exceptional trading result helped by favourable market conditions.”
Pre-tax profits rose €69.3m up from €58.9m the same time last year, with sales for the period up to €1.1 billion from €944m.
Shares are up 1p to 174p.
Fyffes said thanks to a strong performance in the second half of 2004 and significant cost inflation across the industry, it was targeting high-teens percentage growth in earnings for the full year.
The Dublin-based company has reported strong sales for its Tropical Produce division in mainland Europe, compensating for “a relatively flat out-turn” in Ireland and the UK.
And it plans to expand its supersweet pineapple trade following a 50 per cent jump in half-yearly sales to 3 million boxes.
Profits have also been boosted by the company’s acquisition of Everfresh, a Swedish fruit distributor.
Fyffes has suffered from increased costs for fruit, shipping and fuel, along with other fruit importers.
In addition, the company has incurred legal fees of €4.3 million in its ongoing case against DCC, the Irish corporation it accuses of insider trading.
However, the company said improved exchange rates and “positive supply factors” had helped offset added expenses.
