Profits at Fyffes pass the €100m mark

Profits at fruit importer, Fyffes, have passed the €100 million mark for the first time according to figures released yesterday by the company.

Turnover grew 11.5 per cent in 2004 to €2.15 billion. A €177 million contribution from its Swedish acquisition, Everfresh, boosted group sales as did volume increases of 2 per cent.

Operating profits were up 32 per cent at €89.2 million. Net interest income of €5.5 million and a €15.2 million from its property business left it with total pre-tax profits of €110 million in 2004, against €79.3 million a year earlier.

Stripping out once-off costs of €7.1 million, which include a €4.1 million bill for its ongoing insider dealing case against DCC, Fyffes had a profit before tax and goodwill write offs of €102.8 million in 2004, 36 per cent up on the €76 million posted a year earlier.

Goodwill amortisation came to €6.5 million, leaving Fyffes with a pre-tax profit for 2004 of €96.3 million, a 34 per cent increase on the 2003 figure of €72 million.

Chairman, Mr Carl McCann, pointed out that a change in financial reporting standards will eliminate the need to account for goodwill amortisation in its 2005 results.

The profits included a €4.1 million contribution from Everfresh. During the year, Fyffes embarked on a joint venture growing a new variety of super-sweet pineapple in Guatemala.

Mr McCann said that the company broke even on the venture in 2004. Development costs were €2.1 million, while sales earned the same amount back for the company.

The business generated total cash of €163.6 million during the year. Mr McCann said that the group hoped to invest this by acquiring other businesses.

However, he said it was not possible to identify potential targets.

"We had a €2.5 million write off on costs spent on one transaction on a continental Europe-based business, but we could not manage to get it done," he said. "It's a question of getting signatures on bits of paper."

Sales of interests in Dundalk and Kenmare boosted the group's property business profits. It has entered into a joint venture with Lagan Developments on a shopping centre in Navan Co Meath.

It has also bought the remaining 10 per cent of the Edinburgh fruit market in the Scottish capital that it did not already hold.Fyffes shed four cent to close at €2.21 in Dublin last night.