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29 Aug 2008 12:09
Fyffes plc
Stock Exchange Announcement
Fyffes revised earnings target for 2008
Fyffes expects that its results for the first half of the year, which are due to be published on 11 September 2008, will show a strong increase in Adjusted EBIT* to €15.7m compared to €11.7m the same period last year. However, the outlook for the second half of the year has deteriorated since the Group's last trading update on 25 June. In recent weeks, there have been further significant increases in the cost of fruit, combined with a strengthening of the US Dollar against the Euro and Sterling. Bunker fuel costs remain c.80% higher than this time last year. There has been some improvement in year on year average selling prices. However, this has been insufficient to offset the impact of substantially higher costs and early indications for the important 'back to school' month of September are that pricing is below expectations. Fyffes will continue to actively seek increases in selling prices in all markets to offset the unprecedented level of cost inflation being experienced in the industry.
Reflecting this, Fyffes' revised target Adjusted EBIT* for the full year 2008 is now in the range €12m to €15m compared to €17.4m last year. Net cash balances at 30 June 2008 amounted to €53m. Target year end net cash is now in the range €34m to €37m reflecting further capital expenditure on the expansion of one of our UK distribution centres, along with the anticipated second half trading losses and dividend payments.
Fyffes believes it can achieve an improved performance in 2009, assuming higher industry costs are recovered through increases in selling prices in all markets.
* Adjusted EBIT and Adjusted EPS exclude amortisation charges, the Group's 40% share of the results of Blackrock International Land plc and exceptional items.
Fyffes plc
29 August 2008
For further information, please contact:
Brian Bell, Wilson Hartnell PR - Tel: +353-1-669-0030
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