| CATEGORY: SMALL CAPS NEWS SECTOR: FOOD PRODUCERS |
Fyffes raises earnings target |
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Fri 04 Sep 2009
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LONDON (SHARECAST) - A bumper summer in Continental Europe has convinced fruit supplier Fyffes to raise its full year earnings target, although selling prices must rise to offset higher costs and unfavourable exchange rates.
Fyffes now predicts earnings before interest and tax (EBIT) for 2009 will be between €18m and €22m, more than the €16m-€20m it forecast back in June.
Adjusted profit before tax, which excludes Blackrock’s results and exceptional items, rose to €18.6m in the six months ended 30 June from €15.7m in 2008.
Revenue including share of joint ventures was flat at €400m, but up 11% to €335.3m excluding them. Sales of bananas up 4% and banana activities added €2.9m to profits for the period, but pineapples suffered from weaker volumes and lower average prices.
'During the first half of the year, Fyffes' key input costs were c.20% higher, including the negative impact of exchange rates,’ said chairman David McCann.
‘The group has focused on the recovery of higher industry costs, achieving increases in average selling prices, and has also benefitted from its currency hedging.’
‘As a result, Fyffes is reporting a strong increase in profits and earnings per share for the period,’ McCann added.
The interim dividend rises 10% to 0.55 cents.
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