Fruit and vegetable distribution group Fyffes has reported a 36% increase in pre-tax profits for the year ending December 31, and said trade had been satisfactory in the first two months of 2005.
Fyffes said its profits before tax and goodwill amounted to €102.8m, exceeding €100m for the first time. Property sales in Dundalk, Co Louth and in Kenmare, Co Kerry boosted profits by €14.6m.
Total turnover for the year amounted to €2,146m compared to €1,925m in 2003, up 11.5%. The purchase of Everfresh Group in Sweden last May accounted for €177m of the increase.
Earnings per share before exceptional items and goodwill came in at 19.77 cents, an increase of over 32%. The company has recommended a final dividend per share of 5.2 cent, up 20% on 2003.
The company attributed the improved profits to strong performances in Continental Europe, together with first time contributions from acquisitions.
The firm is currently in the middle of a major High Court case into alleging insider dealing on the sale of DCC shares. It said that net operating expenses for the year include costs of €4.1m in relation to the case, along with a charge of €2.5m relating to external costs and fees incurred during acquisitions.
Fyffes said its tropical produce division, comprising its banana and pineapple operations, accounted for €14.6m of the €31.5m improvement in total operating profits for the year. The increase was achieved mainly in Europe.
Fyffes said the benefit of improved exchange rates, due to the strength of European currencies against the dollar, exceeded the impact of higher operating costs, particularly in relation to shipping and fuel.
The group's general produce division delivered a 'satisfactory' result for the year with a €7m increase in operating profits. Apple and pear volumes were higher and the markets for citrus and stonefruit were strong. The division also benefited from a number of small acquisitions, mainly in the UK.
'Trading has been satisfactory in the first two months of 2005, particularly in Continental Europe,' commented Fyffes Chairman Carl McCann. 'The Group continues to pursue the price increases necessary to compensate for the significant increases that have occurred in shipping, transport and fuel costs,' he said.
'Fyffes continues to seek opportunities to apply its substantial resources to further develop the group through acquisitions and alliances,' he concluded.
Shares in Fyffes were down four cent to €2.21 in Dublin this evening.
