Fruit glut hurts Geest: Arrival of dollar bananas expected to provide relief

GEEST, Britain's biggest banana importer, suffered a 28 per cent profit decline in 1992, as bumper European fruit and vegetable crops depressed prices.

Taxable profits for the 53 weeks to 2 January were pounds 20.4m, down from pounds 26.2m in the previous year, while sales were static at pounds 625m.

Bananas, which provide about a quarter of Geest's profits, were left relatively unscathed by the glut of fresh food in Europe. The pain was felt by other fresh produce, such as apples and pears, which contribute about half of Geest's profits.

Despite the downturn David Sugden, chief executive, was in buoyant mood as the company looked forward to a change in the European environment.

It reckons that its 1994 banana sales will be twice those of last year, as Latin American bananas will be able to be sold throughout Europe from 1 July.

Earnings per share fell to 20.4p from 26.3p, but Geest is raising its dividend from 7.9p to 8.1p.