Fyffes has increased its profit forecast for the second time in three months after seeing a positive rise in its profits over the summer.

The global banana company said it had enjoyed a four per cent rise in sales, which it attributed to higher prices in the market due to reduced volumes of fruit available.

And the Irish company warned that rising costs would push up the prices of bananas, pineapples and melons in the next few months.

The dollar strengthened against most of Fyffes' local selling currencies over the last quarter, leading to an overall increase in costs of 20 per cent but competitive import prices kept income up over the summer.

Fyffes increased its earnings forecast for the full year to €16-20m (£14m-17.4m) in June, a figure it raised today by €2m to €18m-22m.

Fyffes chairman David McCann said: “The group has focused on the recovery of higher industry costs, achieving increases in average selling prices and has benefited from its currency hedging. We will continue to pursue increases in selling prices in all markets in the context of the higher costs.”

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