Fruit distributor Fyffes said today that annual profit for 2008 was "slightly" ahead of its target and analysts estimates.
The company said pre-tax profits for the year ending December 31st and excluding the group's share of its spin-off property firm Blackrock's results and exceptional items, was €31.5 million, compared to €10.2 million for the previous year.
Total turnover for the year amounted to €758.2 million, a 7 per cent rise on the €708.9 million reported for 2007 while group revenue was €606.7 million, up 9.6 per cent on the previous year.
Earnings before interest and tax for fiscal 2008 was €15.3 million, compared to €17.4 million for 2007.
During 2008, the group said it experienced "an unprecedented level of cost inflation", with the costs of fruit, shipping and, in particular, fuel all substantially higher year on year. The impact of this was mitigated by more favourable average exchange rates, due to the relative weakness of the US Dollar for much of the year.
On 7 January 2009, Fyffes indicated that it was targeting an Adjusted EBIT* for 2009 in the range €14m-18m. This was based on achieving significant price increases in all key markets to counteract the impact of the adverse movement in exchange rates due to the strengthening of the US Dollar, particularly relative to Sterling, and further cost inflation.
“Fyffes’ profits for 2008 were slightly ahead of target and market expectations, notwithstanding the unprecedented increases in the costs of fruit, shipping and fuel experienced by the industry during the year. Fyffes’ target EBIT for 2009 is in the range €14 million-18 million," said the group's chairman David McCann.
The group said it had experienced a slow start to 2009, as the increases in selling prices achieved in the first two months were insufficient to offset the higher costs and unfavourable exchange rates. However, it added that pricing has significantly improved in recent weeks, particularly in continental Europe and, consequently, the group is maintaining its target result for the year.
