Ireland-based produce group Fyffes saw full-year profits fall in 2007 due to rising fuel costs, the company said today (7 February).
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Fyffes, famous for its banana business, posted underlying operating profit of EUR17.4m (US$25.3m), down from EUR18.4m in 2006.
The company said “significant inflation” in the costs of fruit, shipping and fuel had weighed on earnings.
However, Fyffes saw its turnover rise 13.8% to EUR553.4m thanks, it said, to rising banana sales in Europe.
Fyffes chairman David McCann warned cost pressure would worsen this year. “The significant cost inflation experienced by the industry last year is expected to increase further in 2008,” he said.
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By GlobalData“Notwithstanding this, Fyffes is targeting a mid-single digit percentage increase in adjusted EBIT for 2008, excluding the anticipated positive impact of its recent entry into the US winter melon market.”
The company’s European winter melon business posted a loss of EUR2.8m for 2007 due to the under-performance of Nolem, its Brazilian venture.
Fyffes said its entry into the US winter melon business would double its volumes in that category this year.
On a brighter note, the firm’s pineapple business posted a “modest profit” with volumes up 7%.
