Higher prices and lower input costs drive earnings at Fyffes

Fruit distributor Fyffes saw earnings before interest, tax and write-offs rise 14.2 per cent to €45.8 million last year.

The company’s numbers were helped by higher selling prices as well as lower shipping and fuel costs, and came despite the headwind of a stronger dollar.

Total revenue, including the group’s share of its joint ventures, amounted to €1.22 billion in 2015, an increase of 12.1 per cent.

This was mainly driven by organic volume growth in the group’s banana and melon categories, the company said.

Another year of double-digit growth in its banana operation was secured despite the dollar strengthening by 16 per cent and 7 per cent against the euro and Sterling during the year.

The impact of this was partly mitigated by reductions in key input costs, further logistical efficiencies combined with lower fuel costs, Fyffes said.

Pineapple operations also delivered a strong result the significant headwind a strong dollar. The group said it secured increases in selling prices in most markets, helped by supply constraints as a result of poor weather in Costa Rica, the key production region.

The board is proposing to pay a final dividend for 2015 of €1.924 cent per share, up 15 per cent on the previous year.

Having achieved a further step up in profitability in 2015, Fyffes is focused on consolidating at this higher level of earnings.

Fyffes said it was targeting earnings in the range €42 million-€48 million in 2016, noting it was pursuing increases in selling prices in all markets in response to the continuing strength of the dollar against the euro and sterling.

Commenting on the results, chairman David McCann said: “Fyffes has delivered another important step up in earnings in 2015, its seventh consecutive year of growth, with a 14.2 per cent increase in adjusted Ebita to €45.8 million.”

“The group is also focused on continuing to grow its business and is actively pursuing a number of attractive acquisition opportunities,” he added.