Fyffes' pre-tax profits jump by nearly 30% in H1
Banana sales at Irish multinational Fyffes performed strongly despite rising costs in the first half of 2012, with the company posting a 29.5% year-on-year rise in pre-tax profit to €22.4 million (US$28.2 million) for the period.
The company's interim results from January until the end of June 2012, showed a €3.9 million (US$4.9 million) year-on-year increase in banana operating profits.
Chairman David McCann said the results were a reflection of category growth and efficiencies such as "reconfiguring" its shipping logistics
"Fyffes has delivered a strong increase in profits for the first half of the year, driven by further organic growth in each of its product categories. Earnings per share also benefited from the significant repurchase of shares in 2011" he said.
The Dublin-based company has increased its full year earnings target by €3 million (US$3.8 million) to €28-33 million (US$35-41.5 million).
Fyffes said profits were achieved despite "adverse" exchange rates due to a strong U.S. dollar, higher fruit costs and a further 20% increase in bunker fuel prices.
The company said its pineapple category had shown an increase in profits thanks to an 8% increase in volumes and lower shipping costs.
"Overall market conditions were broadly positive compared to the same period last year, particularly in Continental Europe," the company said.
Fyffes said its U.S. melon business performed well with an increase in underlying trade profit and strong organic growth.
Production capacity increased during the period through the purchase of an additional farm in Guatemala and the opening of a sales office on the U.S. West Coast.
Fyffes works with banana growers in the Windward Islands, Belize, Costa Rica, Colombia, Dominican Republic, Ecuador, Ivory Coast, Honduras, Cameroon, Brazil and Peru.
It sources its pineapples from Costa Rica, Panama and Ecuador and its melons from Honduras, Guatemala and Costa Rica.
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