Fyffes’ total revenue, including the share of its joint ventures, amounted to €1.22 billion in 2015, an increase of 12.1% on the previous year’s result. Excluding the group’s share of its joint ventures, revenue was €985 million, 15.6% higher than in 2014.
Even excluding the positive impact of the weaker euro on the group’s US Dollar and Sterling-dominated sales, underlying revenue was growth for 2015 was still 7%, mainly driven by organic volume growth in its banana and melon categories.
2015 was also Fyffes’ seventh consecutive year of earning growth, with an adjusted EBITA of €45.8 million, 14.2% higher than 2014’s €40.1 million. The group’s Adjusted EBITA has increased by 200% over the last seven years, representing an compound annual growth rate of 17%.
Key performance drivers for Fyffes’ tropical produce operations have proven to be average selling prices, exchange rates and the costs of the fruit itself, as well as shipping and fuel.
Despite the US Dollar strengthening by 16% and 7% against the euro and Sterling respectively, Fyffes achieved a strong result in the banana category in 2015, with a mid-teens percentage increase in operating profits.
It continued to grow its European market shares, reporting a mid-single digit percentage increase in its banana volumes in the year.
Fyffes’ pineapple operation saw similar results for 2015. It secured increase in selling prices in most markets, something that was helped by supply constraints because of poor weather in key production region, Costa Rica.
The group’s total operating profit, which is Adjusted EBITA less exceptional items and the Group’s share of its joint ventures’ interest and tax charges, amounted to €32.5 million for the year, compared with €38.9 million in 2014.
Going forward, Fyffes initial EBITA target for 2016 is in the range of €42 million to €48 million. It is now pursuing increased in prices in all markets in response to the currently continuing strength of the US Dollar againe the euro and Sterling.
© 2016 - Checkout Magazine by Jenny Whelan.
