Melons drive Fyffes profit growth in Q1
Fresh produce multinational Fyffes Plc (ESM: FFY) has notched an 18.4% year-on-year rise in adjusted profit before tax to €15.8 million (US$21.65 million) for the first quarter, attributed mainly to favorable conditions for its U.S. melon business.
The Ireland-based company said the strong performance of the category was driven by organic volume growth, while selling prices were also slightly higher.
Fyffes said the banana business was “satisfactory” for the period, although profits were slightly down with lower average selling prices, particularly in continental Europe.
“Fyffes has continued to successfully grow its banana volumes organically in the year to date, with both new and existing customers,” said chairman David McCann.
Profits were down slightly for pineapples as well, but a lower U.S. dollar was able to help offset part of the trend of rising fruit costs for both these items.
Total revenue however did not register the same spike as adjusted profit, rising 3.4% year-on-year to €306.5 million (US$420 million).
Fyffes’ results are significantly better than the trans-Atlantic counterpart it plans to merge with, Chiquita, which registered a US$25 million net loss for the period.