European effort bears fruit for Fyffes

A STRONG performance from continental Europe will see fruit and vegetable distributor Fyffes top market expectations this year.

Carl McCann, chairman of the Irishbased company, said the momentum seen in the opening months of the year had continued throughout the first half, thanks to favourable market conditions, particularly in continental Europe.

Fyffes, which also owns the Cape and Outspan brands, is Europe's largest distributor of fresh fruit and vegetables.

'With the benefit of this very positive start to the year and notwithstanding the strong performance achieved in the second half of 2004, Fyffes' current target for full-year 2005 is an increase in adjusted earnings per share, excluding exceptional items, in the mid-teens in percentage terms, ahead of current market expectations,' the group said.

The performance will be weighted towards the seasonally stronger first half, and adjusted earnings for the six months are expected to be as much as 40% ahead of the corresponding period. The group will report its first-half results in early September.

McCann said Fyffes was maintaining its focus on improving the profitability of its UK/Ireland operations and taking action against the 'significant' cost inflation that is being seen.

It plans to invest a further €22m (£14.6m) in new properties across Europe, including Edinburgh.