Shares in Irish produce company Fyffes jumped 10% this morning (26 June) after the company said that it expected to exceed its previous earnings guidance.
At the start of the year, Fyffes said that it was targeting adjusted EBIT of EUR14-18m (US$19.7-25.3m) in the current fiscal.
“This target was based on achieving increases in average selling prices in all markets to offset the impact of cost inflation and less favourable exchange rates compared to last year,” the company said in a statement.
Fyffes indicated that, while input costs are up 20% year-on-year, it has successfully offset this through raising average selling prices. The group has also benefitted from “favourable” market conditions, particularly in continental Europe, and the positive impact of its currency hedging.
Fyffes said that it is now targeting adjusted EBIT of EUR16-20m in fiscal 2009, compared to EUR15.3m last year.
Shares in the group rose 10.33% to EUR0.331 at 11.30am (BST).