Fyffes shares slip after firm reports profits flat on last year
SHARES in the fruit producer Fyffes fell yesterday after the company reported profits that were flat on last year.
The company said adjusted profit for tax was little changed year on year at €21.3m, despite revenue increasing by 2.1pc to €742.1m. Those figures translated to adjusted earnings per share of 5.5c, up 6pc on last year. The dividend has been increased to 1.2c.
Total operating profit after the tax losses the company had taken on the developer Balmoral International Land stood at €8.7m compared to a loss last year.
Banana sales were hit by the "cold weather throughout Europe during the first three months of the year and excess market supplies during much of the first half resulted in a significant reduction in operating profits," said the company.
Banana profits were also significantly impacted by adverse exchange rates and higher input costs.
Chairman David McCann described the results as "very satisfactory".
"Trading conditions in the first two months of 2011 have been satisfactory. The group is maintaining its current target EBITA range for the year of €17m to €22m," he said.
Davy Stockbrokers' Aiden O'Donnell said: Overall, this is a very solid statement from Fyffes and for the second year in a row it has achieved an adjusted EBITA outturn of around €21m. The increase in the dividend will be welcomed by investors."
Mr O'Donnell reiterated his firms "outperform" rating on the stock but added they would review that. The stock closed down 2.75pc at 43c.