Fyffes reports rising sales as banana prices rise

Fruit importer Fyffes has lifted its full-year forecasts after successfully increasing banana and pineapples sales.

Total revenue, including the group's share of its joint ventures, was €92m higher (20.0%) year-on-year in the first half, amounting to €550.1m.

Profit before tax came in at €22.4m against €17.3m while the interim dividend was raised from 0.605 euro cents last year to 0.65 cents this year.

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Fyffes says banana sales were particularly strong, showing a €3.9m increase in operating profit. This came despite a significant adverse movement in exchange rates, due to the strength of the US dollar, combined with higher fruit costs and a further 20% increase in bunker fuel prices. The answer was quite straightforward - raise prices, which is exactly what Fyffes did.

Pineapple sales increased 8% by volume and also benefited from lower shipping costs.

Commenting on the results, Chairman David McCann said: "Fyffes has delivered a strong increase in profits for the first half of the year, driven by further organic growth in each of its product categories. Earnings per share also benefited from the significant repurchase of shares in 2011. Fyffes is increasing its 2012 full year target for earnings before interest, tax depreciation and amortisation (EBITDA) range to €28m-€33m from €25m-€30m previously."

BS