Monday 21 August 2017

Fyffes posts 38pc rise in profit as its banana sales increase

In profit: Fyffes bananas
In profit: Fyffes bananas
Michael Cogley

Michael Cogley

Irish fruit company Fyffes posted a half-year pre-tax profit of €30.8m as the company increased prices in Q2 to tackle the effect of the strong dollar.

The company's diluted earnings per share increased by 46.6pc to 8.97c while total revenue grew by 8.7pc to €644.3m.

In spite of currency headwinds, with the dollar improving against both the pound and the euro, Fyffes reported an increase of €2m in banana profits when compared to the same period last year.

The Dublin-headquartered company paid out €4.94m in their final dividend for 2014 of 1.673c, which was approved by shareholders at its AGM on April 30 as it reported a 15pc increase in the interim dividend.

In tackling FX headwinds, the company reduced logistics costs and in particular fuel, which was reduced by 40pc year on year. The company also reduced other import costs and operating costs in its UK distribution centres. Pineapple sales grew by €900,000 as both yields and on-farm efficiencies continue to improve. Melon volumes fell due to weather conditions but the effects of the decrease were eased by modest price rises.

Company chairman David McCann said that the good half-year results are a showing of the company's ability to deal with prevailing market conditions.

Irish Independent

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