FRUIT IMPORTER Fyffes has reported a collapse in annual pretax profits to €128,000 from €13.23 million as it bore a €28.64 million loss arising from its 40 per cent stake in spin-off firm Blackrock International Land.
Pretax profits before Blackrock’s losses and exceptional items – including a €33 million gain from the settlement of insider trading litigation with DCC – were €15.9 million, down from €18.4 million in 2007. Adjusted fully diluted earnings per share – excluding Blackrock, amortisation and once-off items – fell to 3.95 cent from 4.42 cent. Fully diluted earnings per share fell to 0.02 cent from 2.63 cent in 2007.
The declaration of a final dividend of one cent per share means Fyffes maintained its total dividend for the year at 1.5 cent a share. Shares in Fyffes, down almost 81 per cent in the past 12 months, fell one cent yesterday to close at 17 cent, valuing the business at €58.7 million.
Company chairman David McCann said Fyffes had faced a “slow” start to the current trading year. But he reiterated guidance for adjusted earnings before interest, tax, depreciation and amortisation in the €14 million to €18 million range. The results “were slightly ahead of target and market expectation”, he added.
Fyffes aims to achieve price increases to offset the impact of inflation and the strengthening US dollar relative to sterling.
Although price increases in January and February failed to offset its rising cost burden and unfavourable exchange rates, Fyffes said pricing “significantly improved” in recent weeks.
Group revenue rose 7 per cent to €758.2 million last year as Fyffes took the benefit of a first-time contribution from US winter melon business Sol Marketing and higher average prices for bananas.
The gain from the DCC settlement was offset by impairment charges of €7.5 million in relation to Fyffes’s investment in a container shipping business and €5.7 million in relation to its investment in Brazilian melon joint venture Nolem.
It also took a €2.9 million charge over an EU fine on its German joint venture, Weichert.
