Shares in Fyffes rose sharply yesterday after the fruit firm said it was aiming to beat market expectations with its 2005 performance.
In a trading update, the company said it had achieved a "significant increase" in adjusted pretax profits and earnings per share over the first four months of the year. Market conditions have remained favourable for the company's businesses, it said.
Fyffes is now expecting growth of at least 10 per cent in earnings per share for the full year.
The statement was well-received in the market, with Fyffes shares climbing seven cent to close at €2.30.
Fyffes said trading had been particularly strong in continental Europe over the past few months.
Forthcoming interim results will be boosted by a first-time contribution from Everfresh in Sweden, which Fyffes acquired in May last year.
The company said it continued to pursue price increases to deal with the lower margins that have hit business in the UK and the Republic.
It pointed to "significant cost inflation" across the industry.
Analysts believe Fyffes is well-placed to win price increases, with evidence of this coming last month when rival firm, Chiquita, reported firm banana pricing for the start of the year.
Against this backdrop, earnings upgrades are likely to flow from yesterday's statement. The company yesterday prepared for this by signalling "double-digit" growth for the full year. This forecast is thought to be independent of any exceptional items.
Fyffes has made a number of substantial exceptional gains from property deals over the past few years.
Full-year results can be expected however to include some provision for legal costs in relation to the insider dealing case currently being taken by Fyffes against DCC and Jim Flavin.
These costs amounted to €4.1 million in 2005 but are likely to be considerably higher this year.
The case has now been running for more than four months and is not yet approaching its end.
Fyffes will however be well-placed to receive substantial damages if its challenge is successful.
