Fyffes forecast earnings will beat previous targets

FYFFES HAS said it expects its earnings in 2010 to be ahead of previous targets.

It said it expects its adjusted Earnings Before Interest, Taxes and Depreciation (Ebitda) for 2010 to be in the €19-€20 million range, compared to the €14-€18 million previously indicated.

Banana selling prices in the continental European market ended the year strongly, boosting the company’s performance.

Fyffes expects to deliver a mid-single digit percentage increase in its adjusted earnings per share for 2010 compared to the 5.19 cent in 2009, reflecting the additional benefit of a lower minority interest charge for the year.

However, the group said that in 2011 the banana and pineapple industries face higher costs due to less favourable exchange rates and increased bunker fuel prices.

Fyffes believes higher selling prices will be required in all its markets. It is targeting an adjusted Ebitda for 2011 in the €17-€22 million range.

The group said it continues to pursue a number of opportunities to further develop its business in order to increase shareholder value. The Fyffes share price closed at €0.39 yesterday, an increase of 2.6 per cent on the previous day’s closing. The group is expected to publish its results for the year around early March.

In September 2010, the group announced pre-tax profits of €10.2 million for the first half of the year, compared to €12 million for the same period in 2009.

Adjusted profits before tax totalled €13.3 million as against €18.6 million a year earlier.

Total operating profit for the first half, including the group’s share of Blackrock’s International Land losses, amortisation and the joint ventures tax charges, amounted to €10.1 million.