Tropical fresh fruit distributor Fyffes has confirmed it achieved a slight rise in operating profit last year, with chairman David McCann hinting at further investments following the recent acquisition of a one-third shareholding in German importer Fruchtimport vanWylick.
The group has now published its full annual report for 2010, showing it achieved a 2.8 per cent annual rise in operating profit to €21.3m during the course of the year as anticipated in its preliminary results released at the beginning of March.
The company's net profit for 2010 came in at €7.27m, a notable improvement on the previous two years, when it made a loss after tax of €9.92m (2009) and a small net gain of €330,000 (2008).
'Having delivered a strong increase in profits in 2009, the best since the ending of European banana import regulations in 2005, Fyffes was pleased to achieve a further increase in profits in 2010,' commented Mr McCann.
'In the context of the 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.'
Mr McCann also said the recent acquisition of a stake in vanWylick was 'an important development' for Fyffes which would offer the group 'significant opportunity' for growth.
He also suggested that further investments during the coming 12 months were a real possibility.
'The board is focused on continuing to grow and develop the business and is exploring other interesting opportunities to invest the group's resources,' he said.
Fyffes indicated earlier this year that its target EBITA for 2011 was in the range €17m-22m.
'Market conditions have been satisfactory in the first two months of the year,' said Mr McCann. 'Fyffes operates in a low-margin sector which requires the group to maintain a high level of efficiency in its day to day activities.'
He added: 'I believe Fyffes excels in this regard and we will continue to pursue every opportunity to improve our operations to ensure they are 'best in class'. Our products continue to represent excellent value for the consumer.'
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