29th Apr 2016 07:36
LONDON (Alliance News) - Fyffes PLC on Friday said it has increased its earnings guidance for 2016 following the acquisition of Canadian mushroom producer Highline Produce Ltd.
The Irish banana and fresh produce supplier bought Highline earlier this month for CAD145.0 million and said it has revised its full-year guidance based on the expected impact this will have for the nine-month period post-acquisition.
Fyffes now expects to achieve full-year earnings before interest, tax, depreciation and amortisation between EUR63 million and EUR69 million, having previously forecast EUR54 million to EUR60 million. Its Ebitda for 2015 was EUR56.1 million.
It has also increased its earnings per share guidance to between 12.8 cents and 14.5 cents, up from its prior forecast of 11.4 cents to 13.1 cents. Earnings per share in 2015 were 12.73 cents.
All figures exclude exceptional items and amortisation charges.
Fyffes said that overall the group's existing business has performed in line with expectations in 2016 so far.
"Fyffes remains confident about its future prospects, including the performance of its new mushroom business, and continues to focus on its ongoing development with a view to increasing shareholder value," Fyffes said in a statement.
Shares in Fyffes were trading down 1.7% at 120.86 pence on Friday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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