Fyffes is to pay a €20m special dividend to reflect what it has called an “exceptional performance in 2005”.


In a pre-close statement released to the Stock Exchange today, the Irish food group said: “Market conditions, particularly for Fyffes’ Tropical Produce operations in Continental Europe, have remained strong during the second half of the year. This has helped offset the significant cost inflation being experienced in the sector and, consequently, the group is on course to report another record performance this year. Fyffes is now targeting a percentage increase in adjusted earnings per share for the full year 2005 in the low to mid-20s, ahead of the group’s previous expectations.”


As a result of the company’s progress, Fyffes said it plans to pay a special second interim dividend for the year of €20m (equivalent to €0.0572 per share) on 3 March 2006 to shareholders on the register on 10 February 2006. The board currently anticipates that the final dividend for 2005, which will be proposed for approval at the AGM in May 2006, will remain unchanged from 2004 at €0.052 per share.


However, in the statement, Fyffes added that it was facing higher costs in 2006.


“Looking ahead to next year, the industry is facing a number of significant challenges. As already signalled, the EU’s intention to replace its current banana import regulations with a tariff-only regime will increase Fyffes’ duty costs by €40m in 2006. In addition, the continuing effect of higher shipping and fuel costs is expected to add a further €15m to the Group’s costs next year, at current exchange rates. These higher costs will need to be recovered from customers and suppliers. It will also take some time to assess the impact on the market of the elimination of quotas on banana volumes imported from Latin American sources.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The company added that it continued to actively pursue opportunities to apply its “substantial resources to develop the Group’s business through further attractive acquisitions and alliances.”