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29 Aug 2008 12:09
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Fyffes plc
Stock Exchange Announcement
Fyffes revisedΒ earningsΒ targetΒ for 2008
FyffesΒ expects that itsΒ results for the first half of the year, which are due to be publishedΒ on 11 September 2008,Β will show a strong increase in Adjusted EBIT*Β toΒ β¬15.7mΒ compared toΒ β¬11.7m the same period last year. However, the outlook for the second half of the yearΒ has deterioratedΒ 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 ofΒ the US Dollar against the Euro andΒ Sterling. Bunker fuel costsΒ remain c.80% higher than this time last year. There has been some improvement inΒ year on yearΒ average selling prices. However,Β this has been insufficient to offset the impact of substantially higher costsΒ and early indications for the important 'back to school' month of September are that pricingΒ is below expectations. FyffesΒ willΒ 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'Β revisedΒ target Adjusted EBIT* for the full year 2008Β is now in the range β¬12m to β¬15m compared toΒ β¬17.4m last year. Net cash balances at 30 June 2008 amounted to β¬53m. Target year end net cash is nowΒ in the rangeΒ β¬34mΒ to β¬37mΒ reflectingΒ further capital expenditure on the expansion of one of our UK distribution centres, along with the anticipatedΒ second half trading lossesΒ andΒ dividendΒ 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
29Β AugustΒ 2008
For further information, please contact:
Brian Bell, Wilson Hartnell PR - Tel: +353-1-669-0030
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