Tropical fruit distributor Fyffes has revealed it enjoyed a positive start to 2011 and, as a consequence, has opted to increase its annual target earnings before interest, tax and amortisation (EBITA).
In a statement to the Irish Stock Exchange, the company revealed that its EBITA target range for 2011 had been revised to €17m-€22m, from €20m-€24m forecast previously.
According to the company, a better than expected performance during the first few months of the year enabled it to make the adjustment.
'The full-year result is expected to be significantly weighted to the seasonally stronger first six months, as in earlier years, with profits in the first half expected to be well ahead of the result achieved in the very difficult trading conditions in the same period in 2010,' the company said.
Fyffes reportedly achieved increases in selling prices in the banana category during January-May 2011, particularly in continental Europe.
'The industry has experienced supply shortages in the early months of 2011, due to adverse weather conditions in production regions, and further cost inflation particularly for bunker fuel,' the company added.
'The group's performance in the year to date has also benefitted from operational efficiencies, including the positive impact from significant investments in recent years.'
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