Irish fruit company Fyffes saw its pre-tax profits rise 15.4% to €35.6 million (US$39.8 million) in the first half of the year, with strong performances in the pineapple and melon categories offsetting the impact of a 'difficult' banana market. 

Total revenue from January through June increased 14.7% to €739.3 million (US$826 million), thanks in part to the acquisition of Canadian mushroom grower Highline Produce in March for €99 million (US$111 million).

The entity also reconfirmed its improved full-year EBITDA target of  €63-69 million.

Fyffes said there had been 'challenging' conditions in the banana market over the period, mainly due to the further strengthening of the U.S. Dollar against U.K. Sterling and the euro.

In response the company said it had secured 'some price increases to date', but added these were insufficient to offset the impact of the adverse exchange rates. It said these impacts had been partly offset by lower costs, particularly for fuel.

Fyffes' pineapple operations achieved a 'strong result' over the period, benefitting from price increases in some markets, higher yields and lower production costs. Total volumes sold increased by a 'strong mid-teens' in percentage terms.

The melon business also performed well, with volumes increasing by more than 20% due to the successful integration of additional farming assets in Guatemala, which were acquired in late 2015.

Costs were higher as a result of this expansion, which included the hiring of additional shipping capacity, as well as wider sales distribution throughout the U.S. market.

Photo: www.shutterstock.com

www.freshfruitportal.com