Irish fruit distribution giant Fyffes has bounced back into the black over the past year, posting a €20.7million profit and reversing a €170million loss it posted the previous year during the height of the Covid pandemic, since he had to cope with considerable impairments.
yffes, one of the world’s largest fresh produce distributors, is owned by the Japanese conglomerate Sumitomo.
The accounts just filed for Fyffes note that his performance “improved significantly” in 2021 as the worst of the pandemic wore off.
The company said its 2020 operations were hit hard. It added that the impact on the U.S. melon business was particularly pronounced this year as the pandemic coincided with a key part of the import season when production levels failed to adjust to lower demand.
This has led to “significant fruit dumping both in the production regions and in the USA”.
Fyffes said its 2020 results were also impacted by high impairments reflecting lower forecast mid-term earnings across the group, which impacted the valuation of the carrying amount of goodwill and intangible assets for a number of the group’s recent acquisitions. No additional impairments were required in 2021.
The group, led by CEO Helge Sparsoe, added that 2021 saw a return to profitability in its melon product line, as well as an increase in sales and profitability in its core banana category.
The balance sheet shows that revenue was stable at €1.47 billion last year compared to €1.49 billion in 2020.
However, the gross profit increased from 117 million euros to 189 million euros.
Management Board remuneration fell from €11.1 million in the previous year to €3.6 million last year. The 2020 salary included €7.5 million, which was split between former chief executive David McCann and former finance director Tom Murphy when they left the group earlier this year.
Sumitomo agreed at the end of 2016 to pay 751 million euros to buy Fyffes, which was listed on the stock exchange.
The deal came two years after a proposed $1 billion merger between Chiquita and Fyffes derailed after the Cutrale and Safra groups jumped on the deal, buying Chiquita for nearly $700 million instead.
At the time of the Sumitomo deal, the McCann family owned almost 12 percent of Fyffes and reaped €87 million from the sale.
David McCann told that Irish Independent at the time Fyffes didn’t believe it needed the sale to continue competing on a global stage that has seen consolidation.
“Absolutely not,” he said. “We were not for sale. We have received an appeal and it is a transaction that is commercially compelling and also makes sense in terms of what it means to the people and to the company itself.”
He added: “It all sounds a bit cliche, but that’s how we feel about it. They seem to be good people and they seem to think the same as us.”
Earlier this year, Fyffes officially opened a new €25 million banana and ripening distribution center in Balbriggan, Co. Dublin.
At full capacity, the center supplies more than seven million bananas each week, or more than 60,000 tonnes a year, to Irish retailers, wholesalers and other food suppliers.
https://www.independent.ie/business/irish/fruit-distribution-giant-fyffes-posts-207m-profit-for-2021-42156164.html The fruit distribution giant Fyffes reports a profit of 20.7 million euros for 2021