Tropical fruit supplier Fyffes warned today of higher prices for bananas and pineapples as it grapples with rising costs.
The Dublin-based company blamed the relative strength of the US dollar, higher fruit costs and a further 20 per cent hike in fuel prices for the "necessary" increases in selling prices in its key markets.
The warning came as Fyffes announced a 30 per cent jump in profits to €22.4 million in the six months to June 30, driven by higher sales volumes of pineapples and bananas.
Total revenue, including the Group’s share of its joint ventures, was €92 million or 20 per cent higher year on year in the first half, amounting to €550.1 million.
And with trading conditions in its key continental Europe markets holding firm, it has increased its target for full-year earnings by at least €3 million.
It said: "The group continues to pursue necessary increases in selling prices in all markets to offset the impact of adverse exchange rate movements and the higher cost of fuel and fruit."
Commenting on the results, David McCann, Chairman, said: “Fyffes is increasing its 2012 full year target EBITA range to €28m-€33m from €25m-€30m previously”.
The firm began trading in the 1880s when the first commercial delivery of bananas from the Canary Islands arrived in London for E.W. Fyffe Son & Co.
The world’s oldest fruit brand came into being in 1929 with the famous blue label and its bananas are sourced in the Tropics from countries such as Costa Rica, Guatemala and Colombia.
PA
