Fruit importer Fyffes has reported pre-tax profits of €18.6m for the first half of this year, an increase of 18.6% on the same period last year. This was despite flat revenue of €400m.
Chairman David McCann also said the group was raising its earnings target for the full year after better than expected trading in continental Europe in the summer months.
Adjusted earnings per share were 25.6% higher at 4.46 cent and a 10% higher interim dividend of 0.55 cent has been declared.
Mr McCann said Fyffes main costs were 20% higher in the first half, with exchange rate movements partly to blame. He said Fyffes, however, had focused on recovering these increases through higher prices and currency hedging. The company said it would continue to look for higher prices to offset the impact of higher fruit costs.
The company is now targeting adjusted earnings before interest and tax of between €18m and €22m. Its previous target had been €16-20m.
Pre-tax profits were €12.6m when exceptional items linked to its exit from the Brazilian joint venture Nolem and its share of losses from Blackrock International Land were included.
Fyffes shares closed down one cent at 45 this evening in Dublin.
