Fyffes has reported revenues of over €1 billion for the first time since its demerger of Total Produce in 2006 on the back of continued organic growth. It said total revenues for 2012 rose by 19.7% to €1.017 billion while diluted earnings per share jumped 45.8% to 8.82 cent from 6.05 cent.
Fyffes has reported revenues of over €1 billion for the first time since its demerger of Total Produce in 2006 on the back of continued organic growth. It said total revenues for 2012 rose by 19.7% to €1.017 billion while diluted earnings per share jumped 45.8% to 8.82 cent from 6.05 cent.
Pre-tax profits for the year rose to €27.15m from €12.49m. The company said adjusted EBITDA rose by 38.4% to €41m with the key drivers for the improved performance coming from average selling prices, exchange rates and the costs of fruit, shipping and fuel. The board is proposing to pay a final dividend of €1.42 cent per share, up 7.6% on the previous year.
See how the company’s shares performed in Dublin here.
Fyffes said it ”performed strongly” in the banana category last year as the industry experienced continued cost inflation with higher fruit and fuel costs. It also noted an adverse movement in exchange rates due to the strength of the US dollar in relation to the euro. Further growth in the banana category was experienced during the year with new and existing customers, which it said reflected its service level capabilities and relative competitiveness.
The company reported a small operating profit in the pineapple category, down slightly from 2011 levels. Exchange rates had a ”significant adverse impact” while trading conditions in the second half of the year were less favourable due to excess market volumes.
Fyffes’ melon operations saw a strong underlying trading result with continued volume growth after more production assets were bought in the second half of 2011 and the early last year. The company’s chairman David McCann said that trading conditions have been broadly in line with expectations so far this year. He said that while it is very early in the year, Fyffes is sticking to its target EBITA for 2013 in the range of €27-33m.
”The group continues to pursue necessary increases in selling prices to offset the impact of cost inflation and unfavourable exchange rates. Fyffes remains focused on achieving further growth, both organically and through strategic acquisitions and alliances,” he added.
