Ireland-based tropical fruit group Fyffes has posted a 12% fall in first-half pre-tax profit to EUR15.7m, though the decline was in line with the company’s guidance.


Group revenue in the six months reached EUR286.2m, up 44.9% from EUR197.5m in the same period last year.


However, owing to the demerger of its General Produce and Distribution arm, the revenue figures are not directly comparable. On a like-for-like basis, the company said the increase in group revenue was in the mid-teens in percentage terms. It added that the strong top-line organic growth reflected mid to high teens percentage increases in banana and pineapple volumes.


Adjusted EBIT reached EUR12.7m in the seasonally stronger first half, compared to EUR18m last year, the company said. Statutory operating profit, after exceptional items, amortisation and the share of joint ventures’ and associates’ interest and tax, amounted to EUR14.6m in the first six months of 2007, compared to EUR15.5m in the first half of 2006.


In line with its previous statements, the reduction in first-half operating profits and the anticipated drop in full-year earnings has been attributed to lower banana prices in Europe, primarily resulting from increased market volumes. Operating costs were higher than the previous year during the first half reflecting, in particular, the significant increase in bunker fuel prices, although this was partly offset by savings arising from new shipping arrangements and the impact of more favourable exchange rates, the company said.

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Fyffes reported that its share of losses in Nolem, its Brazilian winter melon joint venture, amounted to EUR2.8m in the six months to 30 June 2007.


However, Fyffes’ pineapple business had delivered an improved result compared to the same period last year, reflecting the significant increase in volumes combined with slightly lower costs, the company said.


Fyffes said its full-year earnings target remained in line with previous guidance, with full-year adjusted EBIT forecast to be EUR15m.