IRELAND: Fyffes cuts profit forecast for 2010

By: just-food.com | 5 March 2010

Fyffes warned of "difficult start" to 2010

Irish fruit group Fyffes lowered its outlook for the coming year after posting a jump in full-year profits for 2009.

Fyffes said this morning (5 February) that pre-tax profits rose 33% to EUR21.2m (US$28.8m). EBIT increased 35.7% to EUR20.7m.

However, the group did see a decline in sales over the year. Revenues, which included sales from joint ventures, dipped 4.1% to EUR762.8m. Excluding sales from joint ventures, group revenues dropped 1.4% to EUR598.1m.

Fyffes chairman David McCann said that the company was able to push through price increases necessary to offset higher costs and the adverse impact of currency movements.

Looking to the coming year, Fyffes acknowledged that trading conditions had got off to a difficult start due to lowre demand, a challenging pricing environment, the strength of the dollar against the euro and cold weather in Europe.

“While it is still early in the year, it is appropriate and prudent to revise the group’s target EBITDA for 2010 to reflect the difficult start. Fyffes is now targeting an adjusted EBITDA for 2010 in the range of EUR14m to EUR18m, which was its original target for 2009," McCann said.

Sectors: Fresh produce

Companies: Fyffes