Fruit distributor Fyffes yesterday reiterated plans to double revenue and profit over the next five years. Just two weeks after the company issued a profit warning chief executive Jimmy Tolan said that the main focus of the growth would be expansion through acquisitions in southern Europe and the Far East.

However, addressing shareholders at the group's annual general meeting in Dublin, Mr Tolan warned that there were several issues over which the company had no control, including rising fuel prices, which would make the group's financial performance very volatile in the short term.

On May 25th, Fyffes cut its 2007 full-year earnings target by 25 per cent, citing significant increases in bunker fuel prices and higher than expected losses in Nolem, its Brazilian winter melon joint venture.

Yesterday Mr Tolan said he was happy with the current target of earnings before interest and taxation of €15 million. This compares with €19 million in 2006 and is down from an initial forecast for the year of €20 million.

Looking to the future, Mr Tolan said that the group strategy was to expand the business through acquisition and organic growth. He said that 75 per cent of the growth would come through acquisitions, for which the group had sufficient resources.

At the end of December, Fyffes had net cash of €80 million, while its stake in the property group Blackrock is estimated to be worth about €120 million.

Mr Tolan said that, if necessary, Fyffes would consider cashing in some of its Blackrock stake to fund an acquisition.

Asked about current trading, Mr Tolan said the business was on track to achieve its targets, although he added that fuel costs remained a concern. He pointed out that shipping fuel had risen by $100 a tonne in recent weeks.

Fyffes also raised the issue of EU import tariffs, saying that they were costing the company as much as €100 million a year. However, chairman David McCann said he believed these were set to fall following significant lobbying by several interested parties.