Tropical fresh produce importer and distributor Fyffes has announced that year-on-year profit before tax improved considerably during 2009, with the increase of 33.3 per cent to €21.2m described as its best since 2005.
Earnings before taxation and amortisation (EBITDA) totalled €20.7m, an increase of 35.7 per cent on 2008, with net funds up from €32.2m last year to €36.6m.
Group revenue (excluding share of joint ventures) amounted to €598.1m for 2009, down 1.4 per cent from the previous year, with banana volumes down 2.3 per cent and total revenue (including share of joint ventures) hit by the cessation of activities at Nolem, the group's former Brazilian melon joint venture.
'Fyffes delivered a strong result in 2009, its best since the change in European banana import regulations in 2005,' said chairman Dave McCann. 'The group achieved the necessary increases in selling prices to offset the negative impact of higher costs and adverse exchange movements in 2009.'
Looking ahead, Mr McCann said that tricky trading conditions during the early part of the year had resulted in the group altering its earnings target for 2010.
'Trading conditions have been difficult in the first two months of 2010 as a result of the negative impact on demand and pricing of the prolonged period of exceptionally cold weather in Europe, and the adverse impact of the strengthening of the US dollar,' he said. 'While it is still early in the year, it is appropriate and prudent to revise the group's target EBITDA for 2010 to reflect the difficult start.
'Fyffes is now targeting an adjusted EBITDA for 2010 in the range €14m-€18m, which was its original target for 2009,' Mr McCann added. 'The group must achieve increases in average selling prices in all markets to offset the impact of unfavourable exchange rates and higher industry costs.'
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