Fyffes H1 Pretax Profit Rises; Increases 2014 Adj. EBITA Target

(RTTNews) - Fyffes plc (FFY.L) reported pretax profit of 22.23 million euros for the 6 months to 30 June 2014, compared to 20.70 million euros, prior year. Profit to equity shareholders increased to 18.56 million euros from 18.43 million euros. Earnings per share in cents was 6.12, compared to 6.13, previous year.

Adjusted profit before tax increased to 31.0 million euros from 22.2 million euros. Adjusted earnings per share in cents was 8.85, compared to 6.36, prior year.

Adjusted EBITA increased to 31.5 million euros from 23.1 million euros.

Group revenue increased to 490.24 million euros from 475.99 million euros. Total revenue including share of joint ventures was 592.84 million euros, compared to 585.43 million euros. The Group said the increase in revenue reflects a combination of further organic growth in all product categories, particularly in pineapples and melons, largely offset by lower average prices.

The Board of Fyffes has declared an interim dividend for the year of 0.714 euro cent, an increase of 5% on the prior year.

Fyffes increased its target adjusted EBITA for the full year 2014 to the range 38 million euros-42 million euros, from prior guidance range of 30 million euros-35 million euros.

Separately, Chiquita Brands International, Inc. (CQB) and Fyffes plc announced updated anticipated annualized pre-tax cost synergies for the proposed combination of Chiquita and Fyffes. Chiquita and Fyffes have identified an additional $20 million of synergies for a total of at least $60 million in annualized pre-tax cost synergies by the end of 2016. Chiquita and Fyffes believe approximately 50% of the $60 million of synergies are achievable in the first year following the close of the merger, with the remaining synergies achieved by the end of the second year.

"As a result of our diligent and thorough integration planning efforts, Chiquita and Fyffes have identified an additional $20 million of synergies that will allow ChiquitaFyffes to deliver even more value for our shareholders and result in a combined company with stronger earnings power," said Ed Lonergan, Chiquita's CEO, and David McCann, Fyffes Executive Chairman.