Fyffes poised to cultivate recent growth
SHARES in Fyffes were little changed yesterday, after the fruit and vegetable firm confirmed its profit forecasts for this year.
In a statement, the company said it expected adjusted earnings per share this year to be between 7.5c and 9.2c, while earnings before interest, tax, depreciation and amortisation (EBITDA) was likely to come in between €36m to €42m.
The company said it was focused on consolidating its profitability this year after strong growth in 2012.
"Fyffes continues to pursue the necessary increases in selling prices in all markets to offset the impact of cost inflation, including higher fruit costs and adverse exchange rate movements, as a result of dollar strength against both sterling and the euro," the company said.
"The company is actively reviewing a number of development opportunities in order to continue to grow the group's business and increase shareholder value," Fyffes added.
Fyffes is also apparently looking into the idea of a share buyback, if market conditions allow it. The interim report came as the company held its annual general meeting in Dublin. All resolutions at the meeting were passed.
Analysts were positive on Fyffe's report.
Davy Stockbrokers' Cathal Kenny commented: "Both of Fyffes' main competitors in Europe have experienced a tough first quarter, losing market share but citing different reasons for the decline: volumes in the case of Chiquita and pricing in the case of Fresh Del Monte.
"We believe that Fyffes still has competitive advantage in its key Northern European markets in terms of market concentration, logistics and ripening capabilities."
Shares closed up marginally at 69c.
They have more than doubled in the past year.