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26 Apr 2010 17:03
Stock Exchange Announcement
Fyffes comments on difficult current trading conditions and maintains target
On 5 March 2010, Fyffes targeted an Adjusted EBITA* for the year in the range €14m-€18m. Selling prices, particularly in Continental Europe, in the period since then have been have been significantly lower than anticipated.
Notwithstanding the unfavourable market conditions in the year to date, Fyffes is maintaining its €14m-€18m target EBITA* result for the year. This target is subject to the implementation in 2010 of the agreement reached in December 2009 to reduce EU banana import duty, which appears to be proceeding as expected, and includes the anticipated contribution from the duty reduction.
Reflecting the difficult market conditions in the year to date, the spread of the Group's full year profit target is expected to be significantly less weighted towards the first six months than in recent years.
Achieving the target result for the year is based on Fyffes achieving necessary adjustments in selling prices and costs. In addition, the Group has reduced import volumes and further reductions are planned during the remainder of the year.
* Adjusted EBITA excludes amortisation charges, the Group's 40% share of the results of Blackrock International Land plc and exceptional items.
26 April 2010
For further information, please contact:
Brian Bell, Wilson Hartnell PR - Tel: +353-1-669-0030
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