Product range pushes Fyffes revenue up 14.5%

FYFFES, THE fruit importer, has reported a 14.5 per cent increase in revenues for 2011, with earnings ahead of forecasts due to “good organic growth” across each of its product ranges.

It has experienced a “positive start” to 2012, and is targeting earnings in the range of € 22-€ 27 million ebitda (earnings before interest, tax and amortisation) for this year.

“Fyffes is pleased to report a strong result for 2011, towards the top end of its target range, with good organic growth across each of our product categories,” said chairman David McCann, adding that performance held up across the group’s food categories.

Looking ahead, the group is benefiting from improving pricing in continental Europe. However, Mr McCann added that fuel costs could be challenging, noting that Fyffes hasn’t hedged against the cost of oil rising.

“Oil is a very big issue for us and we’re facing reasonably strong headwinds in terms of it. Currencies are also working against us,” he said.

According to its preliminary results, Fyffes grew its revenues in 2011 to €850 million, ebitda was up by 10.1 per cent to € 29.6 million. Ebitda was up by 10.1 per cent to €29.6 million. Ebita was up 8.9 per cent to €23.3 million, coming in ahead of analysts’ forecasts.

Its one-third stake in German distributor van Wylick helped to boost revenues, with its €63.8 million contribution its first since it was acquired by Fyffes in March 2011. Mr McCann said he was “very happy” with the performance of this new division. Excluding van Wylick, sales for 2011 were €44.1 million, up by almost 6 per cent on 2010.

In the banana category, Fyffes achieved a “low single-digit year-on-year increase” in earnings, while pineapple volumes increased by over 10 per cent.

With regards to its 40 per cent interest in Balmoral International Land Holdings, Fyffes has written down its share to just €50,000 – “a nominal carrying value” noted Mr McCann – leading to a €2.4 million impairment charge.

In 2011, Fyffes increased its proposed dividend by 10 per cent to 1.925 cent, bringing the total it has spent of dividends or share buy-backs to € 30 million.