Irish fruit and vegetable distributor Fyffes said today it was to pay a special second interim dividend of €20 million, equivalent to €5.72 per share.
The company said it expected a record performance this year, but shares in Fyffes - whose brands also include Outspan and Cape - were down 7 per cent at €2.10 by 9.54am on the Iseq index.
"Market conditions, particularly for Fyffes' tropical produce operations in Continental Europe, have remained strong during the second half of the year," Fyffes said in a statement.
"This has helped offset the significant cost inflation being experienced in the sector and, consequently, the group is on course to report another record performance this year."
It said its final dividend for 2005 would remain unchanged at €0.052 per share. The company is now targeting a percentage increase in the low to mid-20s for adjusted 2005 earnings per share, ahead of its own previous expectations, it said.
Fyffes said the European Union's intention to replace its current banana import regulations with a tariff-only regime would increase the company's duty costs by €40 million in 2006 - which it signalled last month.
Higher shipping and fuel costs were expected to add a further €15 million to costs, which would need to be recovered from customers and suppliers.
In September the group reported first-half pre-tax profits of €70 million.