Solid fruit trading boosted profits at Fyffes over the first half of the year, with pre-tax profits climbing 15 per cent to €48.7 million.The performance, which was ahead of market expectations, came as turnover rose 4 per cent to €1.04 billion.
Fyffes chairman Mr Carl McCann said the second half had begun well for the firm, predicting that full-year numbers would also be "slightly ahead" of market forecasts.
He said the company would award an interim dividend of 1.53 cents per share, which is up 10 per cent on the first half of 2003.
On top of trading profits, Fyffes also made an exceptional gain of €14.3 million through property disposals during the period. This involved the sale of a shopping centre development in Dundalk and a property in Kenmare. The deals bring the total cash raised by Fyffes from property disposals over the past four years to more than €50 million.
Mr McCann said the firm hoped to continue making money from its property division over the medium term. It spent €20 million on sites in Dublin and Edinburgh in the first half and has formed a new joint venture to look at shopping centre opportunities in Navan.
Tropical fruit, including bananas, performed well for Fyffes in the first six months, with cost control and beneficial currency movements offsetting slightly weaker banana markets.
Mr McCann said tight cost control would be maintained in an effort to stem higher costs flowing from strong oil prices and other factors.
The group's pineapple farming venture, which is still in the development phase, posted a loss of €900,000.
Profits were also ahead at the firm's general produce division, where new acquisitions performed strongly.
Mr McCann said he was particularly pleased with a €1.2 million first-time contribution from Swedish firm Everfresh, part of which Fyffes acquired in May.
He declined to comment on reports that Fyffes could be close to agreeing the acquisition of Italian-based fruit marketing company Bocchi. The two firms have been linked for a number of months, with analysts placing a price tag of at least €150 million on Bocchi.
Such an acquisition would be more than doable for Fyffes, which had some €152 million in cash on its balance sheet at the end of June.
In an addendum to the results, Mr McCann said the firm's insider trading case against DCC and its chief executive, Mr Jim Flavin, was scheduled for December 2nd. A recent review of the matter had made the Fyffes board even more confident of its case, Mr McCann said.
Shares in Fyffes closed unchanged at €1.84 last night after a day of heavy trade.
