Fyffes has reconfirmed its full year targets after a positive first half result. Total revenue (including its share of joint ventures) rose by 14.7% to €739.3m in the six months to the end of June. Group revenue (excluding its share of joint ventures) rose by 16.6% to €630.5m. The increase in turnover in the period included the first time contribution from Highline, for the three-months post acquisition. In addition, the Group achieved volume growth in each of its existing product categories in the period, including the first time contribution from the additional melon farming assets acquired at the end of 2015. There was also some price inflation in each of these product categories. Fyffes said it delivered another satisfactory performance in the first half, with adjusted EBITDA in the period €4.5m higher (+11.3%), at €44.0m, and adjusted EBITA up €2.3m (+6.6%) to €36.6m. Excluding the first time contribution from the Highline acquisition, Adjusted EBITA in the first half was in line with the same period last year. This represents a good result for the period with strong performances in the pineapple and melon categories offsetting the impact of the relatively difficult market conditions experienced in the banana category. It says trading conditions in the banana category were challenging during the first half of 2016, mainly due to the further strengthening of the US Dollar against Sterling and the euro. In response, Fyffes has secured some price increases to date but this has been insufficient to offset the impact of the adverse exchange rates and the Group therefore continues to pursue further price increases in all markets. Partly offsetting this, costs have been lower year on year, particularly for fuel. The Group has also continued to grow its banana business organically, with a satisfactory mid-single digit percentage increase in volumes in the period. The group has reconfirmed full year target earnings ranges as follows: - Adjusted EBITDA: €63m - €69m - Adjusted EBITA: €49m - €55m - Adjusted EPS:12.8 cent - 14.5 cent Chairman David McCann said: "Fyffes is maintaining its strong full year target earnings ranges, which were increased in April 2016 following the Highline acquisition. The result for the first half of the year was satisfactory given the difficult prevailing market conditions, including adverse currency movements as a result of the weakness of Sterling and the euro against the US dollar. "The Group was very pleased to complete the purchase of Canadian mushroom business, Highline Produce, during the period. Highline has performed in line with our expectations for the three-month period post acquisition. "The first half results in the Group's other product categories were in line with the same period last year in aggregate, with strong performances in the pineapple and melon categories."
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