Ireland-based Fyffes has announced that group revenue increased to €606.7m on a year-on-year basis during 2008, up 9.6 per cent from €553.3m, driven by higher average selling prices for bananas and first-time contributions from a number of businesses.
The tropical fresh produce importer and distributor saw turnover, including the group's share of revenue of its joint ventures, jump 7 per cent to hit €758.2m for the year.
Earnings before interest and tax for the year (EBIT), excluding the group's share of the results of Blackrock International, exceptional items and amortisation charges, totalled €15.3m, down from €17.4min 2008.
Adjusted EBIT in the group's banana category fell year-on-year by €6.2m, while the pineapple business delivered a 'small profit' and winter melon operations achieved a €3.4m improvement in operating profit.
'Fyffes has delivered satisfactory results for 2008, in line with market expectations, notwithstanding the unprecedented increases in the costs of fruit, shipping and fuel experienced by the industry during the year,' said group chairman Dave McCann in a statement. 'The increases in average selling prices achieved in all key markets and the benefit of more favourable average exchange rates were insufficient to fully offset the impact of these higher costs.'
The group had maintained a strong balance sheet during the year despite the global economic crisis, he noted, with Fyffes operating in a sector that had proved to be 'relatively immune' to recessionary pressure. Indeed, there was evidence to suggest that banana consumption could increase in such downward cycles, he said.
'Looking ahead, 2009 will no doubt present many challenges,' Mr McCann said. 'We remain positive about the outlook for the sector.
'As always, our success is due to the dedication and skills of our people. I believe our team is the best in the sector worldwide,' he added. 'Fyffes products represent excellent value for money and I believe consumption will remain strong – as a result, I believe we are well placed to compete in the current environment and to enhance shareholder value.'
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