Fyffes increases profit target

Fruit importer Fyffes has increased its profit target for the year, as a positive start to 2011 gave rise to optimism.

The company said it expected profit before earnings, interest, tax, depreciation and amortisation to be in the range of €20 million to €24 million. This compares to previous guidance of between €17 million and €22 million.

Fyffes said selling prices in its banana business had increased this year, particularly in Continental Europe.

There were supply shortages at the beginning of the year due to bad weather in production regions, while costs increased, particularly for bunker fuel.

"The full year result is expected to be significantly weighted to the seasonally stronger first six months, as in earlier years," Fyffes said in a statement.

Profits in the first half of 2011 are expected to be ahead of the same period last year, when trading conditions were difficult.

Fyffes said operational efficiencies had also benefitted its business in the year to date.

In March, the company announced pre-tax profits of €21.3 million for 2010, some €100,000 ahead of 2009. The company had expected its adjusted earnings before interest, taxes and depreciation for 2010 to be about €20 million.