IRELAND: Fyffes positive on earnings outlook

By just-food.com | 7 January 2009

Irish fruit company Fyffes said today (7 January) that it expects to deliver earnings before interest and tax of EUR15m (US$20.2m) for fiscal 2008.

In a trading update, the company said it expected earnings for the current fiscal year to come in at the upper end of its guidance.

However, the company sounded a warning as it looked to 2009.

"Looking ahead to 2009, there has been a significant adverse movement in exchange rates in recent months as a result of the strengthening of the US dollar, particularly relative to sterling," it said.

"The group expects further cost inflation in 2009 with higher fruit and shipping costs only partly offset by lower fuel costs," Fyffes continued.

The company said that in order to offset these factors it was seeking "significant" selling price increases in all key markets.

Fyffes said that it is targeting adjusted earnings of between EUR14m and EUR18m for fiscal 2009. However, the Irish food group warned that this target depended on its ability to push price hikes through.

Sectors: Fresh produce

Companies: Fyffes