Shares in Fyffes jumped after Europe's biggest tropical fruit distributor said that profits might rise by up to 30% thanks to brisk demand in Continental markets.

The Irish-based group, which is celebrating the 80^th anniversary of its brand this year, had braced investors for a potential drop in operating profits from an underlying E15.3m in 2008, sapped by higher costs and a weaker euro.

However, the group revealed it was on target to more than make up for a 20% rise in costs through price rises and currency hedging.

"Market conditions have been generally favourable in recent months, particularly in Continental Europe," Fyffes said.

The group raised to E16m-20m, from E14m-18m, its foecast for underlying operating profits this year.

Added attraction

The statement was well received by analysts, with John O'Reilly at Davy forecasting that reforms to banana trading regulations were also in Fyffes' favour.

"The prospect of a certain cut in the duties it pays on banana imports, though the timing here is not known, adds to its attractions," Mr O'Reilly said.

Fyffes shares closed up 2.7% at E0.34 in Dublin, after touching E0.38 earlier, and added 21% to 31.5p in London.