Ireland: Fyffes reports billion euro turnover for 2012
The results mark a return to revenue levels seen prior to 2006, when the company underwent a demerger with Total Produce, Chairman David McMann commented.
“Fyffes has delivered a very strong performance for 2012. Revenue exceeded €1 billion (US$1.3 billion) for the first time since demerger, driven by continued organic growth, and the result for the year also reflected further operational efficiencies, particularly in logistics," McMann said.
Operating profits also came in strong thanks in large part to improved operations and growth in the banana category.
Adjusted EBITDA amounted to €41 million (US$53.7 million), up 38.4% while adjusted EBITA came in at €31.6 million (US$41.4 million) for a 36.1% increase.
"Trading conditions have been broadly in line with expectations in 2013 to date and the Group is maintaining its €27m-€33m (US$35.2 million-US$43.1 million) target EBITA range for the year,” McMann said.
Exchange rates created difficulty for Fyffes, as the U.S. dollar grew stronger against the euro.
Although bananas performed well, the category faced a number of difficulties including higher fruit and fuel costs. Challenging conditions were offset by better operational efficiencies and reconfiguration of certain parts of the company's shipping logistics.
Pineapples also suffered from an unfavorable exchange rate and market oversaturation.
Supply constraints and warmer winter weather gave a boost to the melon category. Production grew in part due to additional production assets acquired over 2011 and 2012. Operating costs grew, however, as a result of higher shipping and fuel costs, as well as higher production costs in the U.S.
Diluted earnings per share grew 45.8% up to €0.0882 (US$0.1155). The total dividend, including the proposed final dividend, was reported at €0.0207 (US$0.0271), up 7.5%.