Banana market ripens again.
FRUIT distributor Fyffes said yesterday the market for bananas had improved significantly after half-year operating profits ripened by 44pc.Dublin-based Fyffes blamed a banana smuggling operation for a sharp fall in full-year pre-tax profits earlier in the year.
Restructuring has also paid off as Europe's largest banana retailer saw half-year operating profits push ahead to pounds 23.4m.
Chairman Neil McCann said: "The trading environment for bananas improved significantly during the first half of the year.
"Supply volumes were in line with normal market conditions following the elimination of last year's illegal imports."
In March, Fyffes said the smuggling operation had been the "single biggest factor" in a 91pc drop in pre-tax profits.
The company added it had achieved cost savings of pounds 12.4m a year from reduced costs and the rationalisation of the group's ripening and distribution operations, which involved the loss of 100 UK jobs.
However, those gains were partly offset by the impact of the continuing strength of the dollar against sterling and the euro.
Turnover rose 5.6pc to pounds 651.1m, while pre-tax profit after exceptional items lifted to pounds 18.8m from pounds 12.7m last time.
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| Title Annotation: | Business |
|---|---|
| Publication: | Daily Post (Liverpool, England) |
| Date: | Sep 11, 2001 |
| Words: | 194 |
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