Lower profits from bananas have weighed on annual earnings at Ireland-based produce company Fyffes.
The group said today (2 March) its results for 2010 were “very satisfactory” despite its banana business seeing operating profits fall.
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Fyffes’ banana business reported “a significant reduction” in operating profit during 2010. The company said cold weather in Europe at the start of 2010, excess supply during the first half of the year, higher input costs and the strength of the US dollar against sterling and the euro hit the business.
The company said conditions in the banana market “improved” during the second half of 2010 as import volumes fell. Fyffes was also able to push through price increases but not at a level sufficient to make up for the shortfall in profits in the first half of the year.
McCann said: “Adjusted earnings per share for the year increased by 6%. In the context of the exceptionally difficult trading conditions which persisted in the banana category for much of the first half of the year, this result represents a very satisfactory outcome for 2010.”
Earnings per share was up 6% at EUR5.50. The company’s turnover, meanwhile, rose 2.1% to EUR742.1m.
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By GlobalDataMcCann added: “Trading conditions in the first two months of 2011 have been satisfactory. The group is maintaining its current target EBITA range for the year of EUR17-22m.”
Nevertheless, Fyffes shares dipped today, falling 2.1% to EUR0.42.
Click here for Fyffes’ full results announcement.
