Fyffes ups forecast but says fruit prices to rise

Fyffes, one of Europe's biggest banana importers and distributors, increased its profit forecast for the ­second time in three months after reporting good ­market conditions across the continent over the summer.

But it warned rising costs would push up the prices of bananas, pineapples and melons across its markets in ­coming months.

The firm said it had seen a 4% rise in banana sales, but that at the same time there had been fewer bananas in the market, forcing it to raise prices.

This was necessary because – while shipping costs were down on last year thanks to lower oil prices – the prices charged by exporting countries rose, and the dollar strengthened against most of Fyffes' local selling currencies. Overall this led to a 20% rise in costs.

But the squeeze on the market, ­particularly in continental Europe, enabled Fyffes to recover much of the cost rises and increase first-half ­earnings before interest and tax by 16% to 18.1 million (£15.8 million). In June it increased its earnings forecast for the full-year to 16-20 million, and today it raised that by 2 million to 18-22 million.

Chairman David McCann said: "The group has focused on the recovery of higher industry costs, achieving increases in average selling prices and has benefited from its currency ­hedging. We will continue to pursue increases in selling prices in all markets in the context of the higher costs."