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Fyffes sees first quarter revenues rise

Fruit distributor Fyffes has recorded total revenues of €306.5 million for the first quarter, up 3.4 per cent on the €296.5 million reported for the same three-month period a year earlier. The company said group revenue, which excludes Fyffes share of joint ventures, was up 5.4 per cent to €256.7 million from €243.4 million. Adjusted profit before tax amounted to €15.8 million, up 18.4 per cent.
The deal to create ChiquitaFyffes, according to Fyffes chairman David McCann, came from “tentative discussions over many, many years” between the Irish company and its larger US rival Chiquita.Fyffes share price goes bananas as it extracts the better deal from $1 billion merger

Fyffes said sales were higher in each of its product categories, driven mainly by organic growth and partly offset by lower average prices in the banana and pineapple categories.

The group reported that average selling prices were lower in the first quarter, particularly in Continental Europe. Adjusted earnings before interest, taxes and amortisation (Ebita) was 14.9 per cent higher at €16 million on the same period last year, which the group attributed to favourable market conditions in the melon category.

Total operating profit for the three months ended March 31st, after exceptional items, amortisation charges and joint ventures tax charges amounted to €9.7million, compared to €13.3 million in the first quarter last year.

Fyffes said adjusted diluted earnings per share amounted to €4.54 cent in the quarter, up 17.9 per cent on the same period last year.

The group said that based on its positive start to the year, it is maintaining its €30m-€35m target Ebita range for the full-year.

Chairman David McCann said that in relation to Fyffes proposed merger with rival Chiquita, which was announced in March, a registration statement on Form S-4 has been submitted to the SEC in the US and will be circulated to shareholders once it has been declared effective by them. The two companies recently revised some of the conditions of their proposed $1 billion merger to reflect mandatory jurisdiction of the European Commission.

The new merged entity, which will be called ChiquitaFyffes, is to be listed on the New York Stock Exchange but domiciled in Ireland. It will have combined annual revenues of approximately $4.6 billion (€3.3 billion).

Source: irishtimes.com

Publication date: 5/14/2014


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