LONDON (Alliance News) - Fyffes PLC Thursday said its half-year pretax profit edged up on the back of strong revenues, buoyed by a good performance from its US melon business.
Fyffes, which imports and distributes tropical fruit, said its pretax profit was stable at EUR20.7 million for the six months to June 30, compared with EUR20.4 million for the corresponding period the year prior.
Its group revenue both including and excluding its 40% share in Balmoral International Land Holdings PLC grew. Revenue excluding the Balmoral shareholding increased 7.4% to EUR476 million.
Fyffes said its banana business faced difficult conditions because of an extended winter in Europe and the strength of the US dollar, as well as increased fruit costs in 2013, continuing a multi-year trend. Fyffes said its pineapples business increased operating profits thanks to more stable supplies. The US melon business saw a significant increase in the number sold, with Fyffes saying it consolidated its position as the US's melon market leader.
Meanwhile, Balmoral International Land Holdings, Fyffes' 40% owned company, saw a further reduction in its net assets, with Fyffes's ownership amounting to EUR400,000. Following Fyffes' 2011 decision to write down its Balmoral investment to EUR50,000, Fyffes said it will not recognise any further Balmoral losses as long as its share of the net assets exceeds EUR50,000, as it currently does by eight times. Balmoral has not yet reported its first half results for 2013.
Fyffes shares were Thursday quoted at 64 pence, down 0.38 pence, or 0.6%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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