Fyffes is predicting a year of cost inflation in the fruit market, however the company has said it "remains positive about the future prospects of its business and is well placed to achieve further growth."
In a stock exchange announcement, the fruit company said “the industry will once again experience cost inflation in 2013 and, as a result, higher selling prices will be necessary in all markets.” However, following favourable trading conditions this year, Fyffes expects its 2012 earnings to be at the upper end of its target range, with EBITA expected to be between €30 million and €33 million.
It added that it will “actively pursue a number of development opportunities and further organic growth in order to increase shareholder value.”
According to Cathal Kenny, analyst with Irish stockbrokers Davy, "This is a positive trading update from Fyffes and catalyses an upgrade to our 2012 EPS forecasts. Along with organic growth potential, Fyffes can also pursue non-organic developments due to significant financial flexibility. The shares remain undervalued and continue to distribute a handsome dividend (mid-single-digit yield).” (11 Dec)
Source: Checkout Retail Intelligence
