IRELAND: Fyffes raises profit forecast on "strong" H1
Fyffes earnings rise
Irish fruit group Fyffes has upped its full-year earnings guidance after a "strong" first half when EBITA jumped 36.5%.
Fyffes increased its target for full-year adjusted EBITA to a range of EUR38-42m (US$50-55.3m), up from prior guidance of EUR30-35m. In fiscal 2013, Fyffes generated EBITA of EUR32.7m.
EBITA in the six months to 30 June climbed to EUR31.5m, compared to EUR23.1m in the comparable period of last year. Adjusted pre-tax profit increased to EUR31m, up 40%, the group added in a regulatory announcement this morning (27 August).
Total sales in the half rose 1.3%, climbing to EUR592.8m.
Fyffes has entered into a merger agreement with Chiquita Brands International. The proposal, announced back in March, is now facing a competing takeover bid of US$13-per-share for Chiquita from Brazilian firms Cutrale Group and Safra Group. Chiquita turned down the Cutrale-Safra bid earlier this month.
Both Fyffes and Chiquita shareholders will vote on whether to go ahead with their merger next month.
Fyffes chairman David McCann said: "Fyffes is pleased Chiquita recently rejected the unsolicited offer from the Cutrale Group and the Safra Group and reaffirmed its recommendation to its shareholders to vote to approve the definitive merger agreement between Fyffes and Chiquita... Fyffes and Chiquita remain committed to the transaction and are continuing to work together to complete the combination as expeditiously as possible."
In separate documents filed today, Fyffes and Chiquita raised their synergy targets by US$20m and revealed they now expect to deliver annualised savings of $60m by 2016.
Interim Results 2014
Fyffes plc reports strong first half result and increases earnings target for year
- Adjusted 2014 H1 EBITA 36.5% higher
- Increased EBITA target range for 2014 of €38m-€42m
- Combination with Chiquita – now targeting US$60m of annualised pre-tax cost savings
|6 months to
30 June 2014
|6 months to
30 June 2013
|Total revenue (incl share of joint ventures)||592.8m||585.4m||+1.3%|
|Group revenue (excl share of joint ventures)||490.2m||476.0m||+3.0%|
|Adjusted profit before tax*||31.0m||22.2m||+40.0%|
|Adjusted diluted earnings per share*||8.85 cent||6.36 cent||+39.2%|
|Interim dividend per share||0.714 cent||0.68 cent||+5.0%|
Commenting on the results, David McCann, Chairman, said:
“Fyffes has delivered a strong result in the first half of 2014 with adjusted EBITA 36.5% higher. Based on this result, and continued positive trading conditions early in the second half, Fyffes is increasing its target Adjusted EBITA for the full year 2014 to the range €38m-€42m, compared to €32.7m in 2013.
Fyffes is pleased Chiquita recently rejected the unsolicited offer from the Cutrale Group and the Safra Group and reaffirmed its recommendation to its shareholders to vote to approve the definitive merger agreement between Fyffes and Chiquita. Both companies have sent out documents to shareholders ahead of shareholder meetings scheduled for 17 September 2014. The EU Commission’s Phase I merger clearance review is provisionally expected to end on 19 September 2014. In addition, Fyffes and Chiquita are announcing today that they have identified an additional US$20m of synergies relating to the proposed combination, which now reflects an expected total of US$60m in annualised pre—tax cost synergies by the end of 2016.
Fyffes and Chiquita remain committed to the transaction and are continuing to work together to complete the combination as expeditiously as possible.”
Original source: Fyffes
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