Sales at fruit specialist Fyffes (FFY) blossomed nearly 15 per cent partly due to the first contribution from its acquisition earlier this year. The group snapped up Canadian mushroom business Highline Produce for €99m (£83.4m) and contributed €2.3m to profits during the three months of Fyffes' ownership within the period. The purchase in April prompted management to up full-year expectations and it reiterated these on the back of these numbers.
Back in its regular territory of fruit, the banana division was hit by the strengthening of the dollar against sterling and the euro but mid-single digit volume growth and price increases helped partly offset this. Costs too have been lower year-on-year, particularly for fuel. Exchange rates also caused friction for the pineapple business, but the fact Fyffes sells fewer pineapples than bananas in the UK meant the impact was lighter. Again, management secured price increases in some markets and registered volume growth as well. Finally, the US melon business saw volumes rise 20 per cent, helped by farming assets it bought in Guatemala at the end of 2015. Costs here were higher however, largely due to the integration of the acquisition.
Analysts at Davy expect pre-tax profits of €46.3m in the year to December 2016 leading to EPS of 12.9¢ compared to €31.8m and 9.3¢ in 2015.
FYFFES (FFY) | ||||
---|---|---|---|---|
ORD PRICE: | 133p | MARKET VALUE: | £397m | |
TOUCH: | 132-134p | 12-MONTH HIGH: | 133p | LOW: 97p |
DIVIDEND YIELD: | 2.5% | PE RATIO: | 15 | |
NET ASSET VALUE: | 81¢* | NET DEBT: | 41% |
Half-year to 30 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
---|---|---|---|---|
2015 | 644 | 30.8 | 9.1 | 0.82 |
2016 | 739 | 35.6 | 10.1 | 0.90 |
% change | +15 | +15 | +11 | +10 |
Ex-div: 15 Sep Payment: 7 Oct *Includes intangible assets of €103.7m, or 34.7¢ per share £1=€1.19 |