Fyffes raises its target earnings
FYFFES yesterday increased its guidance for this year as higher prices and tighter supply pushed profits higher.
In an interim management statement to accompany the firm's annual general meeting, the tropical fruit company said it was increasing its target earnings before interest, tax, depreciation and amortisation to between €20m and €24m this year. That is up from €17m to €22m previously.
Company chief executive David McCann said the company had benefited from increasing fruit prices.
"Fyffes has achieved increases in selling prices in the banana category in the year to date, particularly in continental Europe, he said.
"The group's performance in the year to date has also benefited from operational efficiencies," he added.
Banana supplies are known to have been tighter in recent months, especially from Latin America, forcing prices higher with analysts at NCB stockbrokers estimating European prices have increased 15pc year on year. Traditionally the first half of the year is the more profitable one for Fyffes.
Fyffes closed almost unchanged at 42c.