Fyffes lifted its forecast for full-year profits, citing success in passing through higher fruit costs, which in the case of bananas are being supported by the impact of poor weather in Ecuador, the top producing country.
The Irish-based company raised by to E29m-34m, from E27m-33m, its forecast for earnings before interest, taxation and amortisation (ebita) in 2013, lifting the prospect of beating last year's E30.5m result.
The upgrade reflected confidence in the group's ability to pass on to customers dents to profits from exchange rate changes and higher fruit costs, including in the banana market, where earlier in the year Fyffes found its market muscle sapped by "extended winter weather in Europe and excess market volumes".
Cool weather tends to depress banana consumption.
In May and June, "trading conditions improved in the weekly spot market in Continental Europe," a revival which had continued, said Fyffes, the leading banana supplier to the region.
The recovery reflected "supply constraints", blamed on "weather issues which impacted production in certain regions of Central and South America".
World's top banana producers
1: Ecuador, 250m cases
2: Philippines, 150m+ cases
3: Costa Rica, 100m+ cases
4: Colombia, 90m+ cases
5: Guatemala, 75m cases
A company spokesperson told Agrimoney.com: "There were particular weather related issues in Ecuador where too much rain and lack of sun had an impact on supply."
Fyffes said it had "pursued higher selling prices in all markets to deal with higher fruit costs and adverse exchange rates", a campaign it was continuing.
The group, which grows only about 5% of the bananas it sells, is particularly exposed to changes in prices of the fruit.
The group grows some 60% of the pineapples it sells, and all of the melons.
The comments came as Fyffes unveiled a 1.3% rise to E23.1m in ebita for the first half of 2013, on revenues up 6.4% at E585.4m, including contributions from joint ventures.
The results were deemed "encouraging" by Davy Stockbrokers analyst Declan Morrissey, who deemed as "encouraging" Fyffes' organic growth in bananas and melon volumes.
At rival broker Goodbody, Liam Igoe, retating a "hold" rating on Fyffes shares, said: "We are likely to nudge up forecasts to reflect the stronger banana pricing at the end of the period which has continued into the second half, as well as the improved performance in the pineapple business."
Fyffes shares stood unchanged at E0.76 in afternoon deals in Dublin.