Final Results

Fyffes plc

Preliminary Results 2009

Fyffes reports strong profits for 2009

* excluding the Group's share of Blackrock's result, exceptional items, amortisation of intangibles and the Group's share of tax of its joint ventures

** excluding the Group's share of Blackrock's result, exceptional items and amortisation of intangibles

Commenting on the results, David McCann, Chairman, said:

"Fyffes delivered a strong result in 2009, its best since the change in European banana import regulations in 2005. The Group achieved the necessary increases in selling prices to offset the negative impact of higher costs and adverse exchange movements in 2009.

Trading conditions have been difficult in the first two months of 2010 as a result of the negative impact on demand and pricing of the prolonged period of exceptionally cold weather in Europe and the adverse impact of the strengthening of the US Dollar. While it is still early in the year, it is appropriate and prudent to revise the Group's target EBITA for 2010 to reflect the difficult start. Fyffes is now targeting an Adjusted EBITA for 2010 in the range €14m-€18m, which was its original target for 2009. The Group must achieve increases in average selling prices in all markets to offset the impact of unfavourable exchange rates and higher industry costs."

5 March 2010

For further information, please view the 2009 results slide presentation at www.fyffes.com or contact Brian Bell at Wilson Hartnell PR, Tel: +353-1-6690030.

Financial results and operating review

Revenue

Group Revenue amounted to €598.1m in 2009, 1.4% lower than the previous year. Banana volumes were 2.3% lower in 2009 and, while average selling prices were higher, the impact of this on sales was diluted by less favourable exchange rates on translation of UK revenues. In addition, volumes and prices were lower in the pineapple category. The cessation of activities by Nolem, the Group's former Brazilian melon joint venture, contributed to the reduction in Total Revenue, including the Group's share of its joint ventures, from €758.2m in the previous year to €726.8m in 2009.

Operating profit

Adjusted EBITA for 2009 amounted to €20.7m, an increase of 35.7% or €5.5m on the previous year. Adjusted EBITA is operating profit for the Group's tropical produce activities, excluding its 40% share of Blackrock's result, exceptional items and amortisation of intangible assets, and before interest and tax (including the equivalent share of EBITA of its joint ventures). The calculation of Adjusted EBITA is set out in note 2 of the accompanying financial information. The key drivers of performance in the Group's tropical produce operations are average selling prices, exchange rates and the costs of fruit, shipping and fuel, all of which can result in volatility in year on year profitability.

During 2009, there was a significant adverse movement in average exchange rates due to the strengthening of the US Dollar, particularly relative to Sterling. In addition, in the banana category, input costs were higher for the third successive year. Fruit costs in particular were higher year on year, driven by increases in government imposed minimum export prices. The impact of these factors was mitigated to an extent by lower fuel costs and favourable hedging. In response to these challenges, Fyffes sought and achieved the necessary increases in average selling prices across all markets. As a result, the Group delivered a strong increase in the contribution from its banana operations, reversing the reduction experienced in the previous year. Exchange rates have deteriorated further in the early part of 2010 and, as a result, Fyffes will continue to pursue further increases in selling prices in all markets.

As in the previous year, the performance of the pineapple category was impacted throughout 2009 by an uneven supply curve as a result of climatic conditions in the early part of the year. This contributed to a reduction in average selling prices year on year. The Group believes that the farm it acquired in Panama during the year will help smooth its own supply curve over time. Despite the unfavourable market conditions and the adverse exchange rate movements, Fyffes achieved a small profit on pineapples in 2009 excluding certain once-off costs, slightly ahead of the previous year.

Fyffes delivered a modest increase in profits in its winter melon category in 2009, mainly as a result of the cessation of activities by Nolem, its loss making former Brazilian joint venture. Despite difficult trading conditions in the 2008/09 import season, the Group's US winter melon business achieved a satisfactory result, although profits were lower than in the previous year.

Fyffes' 40% share of the after tax losses of Blackrock International Land plc amounted to €27.9m in 2009, as a result of a significant reduction in its net assets of c.60% following the most recent independent external valuation of its property portfolio. Fyffes' share of the reduction in Blackrock's net assets amounted to €35.9m, €8m of which has been written-off against revaluation reserves.

The total operating result for the Group, which is the Adjusted EBITA of €20.7m less the Group's share of Blackrock's result, exceptional items, amortisation charges and the Group's share of joint ventures interest and tax, amounted to a loss of €11.8m for the year, compared to a loss of €1.4m in 2008.

Exceptional items

Net exceptional items amounted to a loss of €1.5m in 2009. An analysis of these items is set out in note 3 of the accompanying financial information and comprises:

·; Currency gains of €7.5m transferred to distributable reserves following the liquidation of a number of non-Euro denominated subsidiaries during the year, net of currency losses arising on the cessation of activities by Nolem, the Group's former winter melon joint venture in Brazil.

·; Costs of €1.6m incurred by the Group arising from the cessation of activities by Nolem.

·; Losses of €4.4m arising in a joint venture business under an onerous shipping contract.

·; An increase of €3.8m in the Group's MNOPF pension liability as a result of the most recent valuation of that scheme.

·; A gain of €0.5m in a joint venture business on the disposal of one of its properties.

·; A gain of €0.3m arising from the recharge to a joint venture business of legal costs incurred in previous years in relation to the EU Competition investigation.

Financial income

Net interest income in the Group's subsidiary companies in 2009 amounted to €0.6m, compared to €1.6m in the previous year, reflecting significantly lower average interest rates and higher non-cash discounting charges on deferred consideration liabilities and other provisions. The Group's share of the net interest expense of its joint ventures reduced from €0.9m in 2008, to €0.1m in 2009.

Profit before tax

Adjusted profit before tax for 2009 amounted to €21.2m up €5.3m from €15.9m in the previous year. As set out in note 2 of the accompanying financial information, adjusted profit before tax excludes the Group's share of Blackrock's result, exceptional items, amortisation of intangible assets and the Group's share of the tax charge of its joint ventures, which is reflected in profit before tax under IFRS rules. The loss before tax, excluding these adjustments, amounted to €11.2m.

Taxation

An analysis of the tax charge for the year is set out in note 4 of the accompanying financial information. The underlying tax charge in 2009 was €2.7m compared to a charge of €1.8m in the previous year, equivalent to a rate of 12.9% (2008: 11.1%), when applied to the Group's Adjusted Profit before Tax. The underlying tax charge excludes the tax impact of exceptional items and deferred tax credits related to the amortisation of intangible assets and includes the Group's share of tax of its joint ventures. This underlying rate is used for the purposes of calculating adjusted earnings per share. The 2009 income statement shows a tax credit of €1.3m, before these adjustments, compared to a credit of €0.3m in the previous year.

Minority interest

The minority interest share of profit after tax for 2009 amounted to €0.5m, compared to €0.3m in the previous year.

Earnings per share

Adjusted fully diluted earnings per share amounted to €5.19 cent in 2009 compared to €3.95 cent in the previous year. The calculation of adjusted earnings per share is set out in note 5 of the accompanying financial information. It excludes the Group's share of Blackrock's result, exceptional items and the amortisation of intangible assets. The fully diluted loss per share after Blackrock and exceptional items amounted to €3.03 cent in 2009, compared to earnings of €0.02 cent in the previous year.

Dividend

The Board is proposing to pay a final dividend for 2009 of 1.1 cent per share. Subject to shareholder approval at the forthcoming AGM, this dividend, which will be subject to Irish withholding tax rules, will be paid on 20 May 2010 to shareholders on the register on 16 April 2010. In accordance with company law and IFRS, this dividend has not been provided for in the balance sheet at 31 December 2009. Total dividends in respect of 2009 will amount to 1.65 cent, equivalent to a payout ratio of 31.8% based on adjusted earnings per share and an increase of 10% on the previous year.

Balance sheet

Investment in Blackrock International Land plc ('Blackrock')

In accordance with International Financial Reporting Standards, Fyffes' 40% investment in Blackrock is treated as an investment in an associated company and accounted for under equity accounting rules. Under these rules, Fyffes carries this investment at €24.1m, representing its share of Blackrock's reported net assets at 31 December 2009. This is a substantial reduction from the €60m carrying value at the beginning of the year and reflects the up-to-date independent professional valuations of its property portfolio. The market value of this investment at 31 December 2009 was €10.5m, based on its then share price of €0.045 per share. The resulting discount to net asset value of €13.6m (2008: €47.6m) has not been recognised in Fyffes' balance sheet at 31 December 2009. There has been a significant convergence between the market value of this investment and its net asset value during 2009.

Pension obligations

The deficit in the Group's defined benefit pension schemes, before deferred tax, increased from €10m at the beginning of the year to €14.5m at the end of the year. Actuarial losses amounted to €10.4m in the year driven mainly by a reduction in bond rates and an increase in forecast inflation rates, particularly in the UK. The Group has taken a number of important steps in relation to its pension exposures, including closing the schemes to new entrants and making special contributions amounting to €5.6m during the year. In addition, changes have been made to the benefits under the schemes and employee contributions have increased.

Net funds

Net funds increased to €36.6m at 31 December 2009 from €32.2m at the beginning of the year. Operating cash generated in the year amounted to €26.9m, before depreciation and impairment charges and excluding the Group's share of operating profit of its joint ventures. Significant expenditures during 2009 included the special pension contributions mentioned above and dividend payments of €5.4m. Capital expenditure in 2009, excluding the €5.6m cost of a distribution centre acquired from a joint venture in the UK which was funded by a dividend from that joint venture, amounted to €4.8m, similar to the depreciation charge for the year. The Group invested €3m in new acquisitions in 2009, including debt acquired. Net tax payments amounted to €2m in the year. There was a small €1.1m increase in working capital during the year, mainly due to an expansion in the level of activity at year end by the Group's US based winter melon business.

Shareholders' funds

Shareholders' funds amounted to €151.7m at 31 December 2009, compared to €202.4m at the beginning of the year. This decrease reflects, in particular, the €35.9m reduction in the carrying value of the Group's investment in Blackrock. It also reflects actuarial losses net of deferred tax of €10m, including the Group's share of its joint ventures, and dividend payments of €5.4m in the year.

Current trading

Fyffes indicated on 11 January 2010 that it was targeting an Adjusted EBITA* for 2010 in the range €17m-€22m. This was based on achieving necessary price increases in all key markets to counteract the impact of the adverse movement in exchange rates and further cost inflation. The exceptionally cold weather in Europe throughout the first two months of the year has had a negative impact on demand and prices in the period. In addition, there has been a significant adverse movement in exchange rates in the period due to the strengthening of the US Dollar.

As a result, the trading result of the Group in the first two months of 2010 is behind the same period last year. While it is still very early in the year, it is appropriate and prudent at this time to revise the Group's target result for 2010 to reflect the difficult start. Fyffes is now targeting an Adjusted EBITA* for 2010 in the range €14m-€18m, which is the same as the Group's original target range for 2009. This revised target does not include any potential benefit from the proposed reduction in import duty, as the timing of the final ratification of the agreement is unclear. The Group must achieve increases in average selling prices in all markets during the remainder of the year to offset the impact of the unfavourable exchange rates and higher industry costs.

* Adjusted EBITA excludes amortisation charges, the Group's 40% share of the result of Blackrock International Land plc and exceptional items.

David McCann, Chairman

on behalf of the Board

5 March 2010

Copies of this announcement are available from the Company's registered office, 29 North Anne Street, Dublin 7 and on our website at www.fyffes.com.

Fyffes plc

Summary Group Income Statement for the year ended 31 December 2009

Fyffes plc

Summary Group Statement of Comprehensive Income for the year ended 31 December 2009

Summary statement of movement in equity

Fyffes plc

Summary Group Balance Sheet as at 31 December 2009

Fyffes plc

Summary Group Cash Flow Statement for the year ended 31 December 2009

Fyffes plc

Notes to Preliminary Results for the year ended 31 December 2009

1. Basis of preparation

This preliminary financial information has been derived from the Group's consolidated financial statements for the year ended 31 December 2009 which have been prepared in accordance with the International Financial Reporting Standards (IFRS) as endorsed by the EU Commission and the accounting policies set out in the Group's 2008 annual report except as otherwise set out below.

Accounting standards applied during 2009

The Group has applied revised IAS 1 Presentation of Financial Statements (2007) which became effective as of 1 January 2009. As a result, the Group has presented both a consolidated income statement and a statement of comprehensive income in addition to a statement of changes in equity. Comparative information for year ended 31 December 2008 has been re-presented to conform with revised IAS 1. The adoption of the revised standard impacts presentation aspects but there is no impact on earnings per share.

In addition, the Group has applied IFRS 8 Operating Segments which also became effective as of 1 January 2009. This standard requires segment information to be presented in the format reviewed by the Chief Operating Decision Maker of the Group. Fyffes is currently organised into two separate operating divisions - its Tropical Produce activities and its Property activities, which comprises its 40% investment in Blackrock International Land plc.

The financial information for the year ended 31 December 2008 represents an abbreviated version of the Group's statutory financial statements on which an unqualified audit report was issued and which have been filed with the Companies Registration Office.

2. Adjusted profit before tax and EBITA

Fyffes believes that adjusted profit before tax and adjusted earnings per share (note 5 below) are the appropriate measures of the underlying performance of the Group. They exclude exceptional items, amortisation charges and the Group's share of Blackrock's results. Similarly, adjusted earnings before interest, tax, exceptional items, amortisation and Blackrock (Adjusted EBITA) is a more indicative reflection of the underlying operating result of Fyffes' tropical produce activities, and represents the basis on which the Chief Operating Decision Maker of the Group reviews performance. Financial income and expense, income taxes and certain corporate costs are managed centrally.

3. Exceptional items

The Group incurred additional costs during the year in relation to the cessation of activities in its former Brazilian melon joint venture, Nolem, amounting to €1.6 million. Fyffes had written off its investment in and amounts owed to it by this business in the previous year.

The Trustee of the Merchant Navy Officers Pension Fund ("MNOPF") has written to employers stating that the most recent triennial valuation has resulted in a significant increase in the deficit in the scheme. Fyffes has increased the provision for its estimated share of this further deficit, giving rise to a charge in the year of €3.8 million.

The Group's joint venture, Geest, has provided in its accounts for its incremental costs under an onerous shipping contract which continues until the end of 2011. Fyffes' share of this charge in the year amounted to €4.4 million.

Currency gains or losses on the retranslation of the net assets of non-Euro denominated subsidiaries and joint ventures are recognised through the statement of comprehensive income each year. On disposal, liquidation or other termination of the activities of any such entity, the cumulative currency reserves in respect of those entities must be transferred to distributable reserves through the income statement. During the year, the Group liquidated a number of non-trading subsidiaries giving rise to the transfer to distributable reserves of cumulative currency gains of €7.5 million, net of losses of €1.8 million on the cessation of activities of the Group's Brazilian melon joint venture.

The Group's share of profit on the disposal by its Geest joint venture of one of its properties to a third party amounted to €0.5 million, net of amounts previously recognised in revaluation reserves. In addition, the Group made a net gain of €0.3 million on recharging certain costs which it incurred in previous years in relation to the EU Competition investigation to its Weichert joint venture.

The net tax impact of these exceptional items was a credit of €3.2 million (2008: net credit of €1.0 million).

Exceptional items in 2008 gave rise to a net gain of €15.5 million. This included a gain of €33 million on the successful settlement of the Group's insider dealing case against DCC plc and others. Fyffes incurred a charge of €5.8 million on the write-off of its investment in and receivables from its former Brazilian melon joint venture. The write-off of the Group's investment in a shipping business and related costs amounted to €7.5 million. The Group's share of a fine recognised in its Weichert joint venture and costs related to the EU Competition investigation amounted to €4.1 million in 2008. Other smaller items in relation to revisions to the Group's MNOPF liability and the costs of terminated acquisitions amounted to a net charge of €0.1 million in the year.

4. Corporation tax

Including the Group's share of the tax (credit)/charge of its joint ventures, amounting to a credit of €0.3m (2008: charge of €0.1m), which is netted in operating profit in accordance with IFRS, the total tax credit for the year amounted to €1.6m (2008: credit of €0.1m). Excluding the impact of deferred tax credits related to the amortisation of intangibles and the tax effect of exceptional items, the underlying tax charge for the Group for the year was €2.7m (2008: charge of €1.8m), equivalent to a rate of 12.9% (2008: 11.1%) when applied to the Group's adjusted profit before tax.

5. Earnings per share

Share options would have an anti-dilutive effect on the earnings per share calculation in 2009 and, as a result, the diluted loss per share is the same as the basic loss per share for the year. Adjusted fully diluted earnings per share

Adjusted fully diluted earnings per share is calculated to exclude the Group's share of the results of Blackrock International Land plc, exceptional items, intangible amortisation, related tax credits/charges, and the impact of share options with a dilutive effect.

6. Employee post employment benefits

The table above summarises the movements during the year in the Group's various defined benefit pension schemes in Ireland, the UK and Continental Europe. The current/past service cost is charged in the Income Statement, net of the finance income on scheme assets. The actuarial (loss) is recognised in the Statement of Comprehensive Income, in accordance with the amendment to IAS 19 Actuarial Gains and Losses, Group Plans and Disclosures. During the year, the Group made special contributions to various schemes in line with actuarial advice.

7. Dividends and share buy back

The directors have proposed a final dividend for 2009, subject to shareholder approval at the AGM of 1.1 cent per share, up 10% on the previous year. In accordance with IFRS, this dividend has not been provided for in the balance sheet at 31 December 2009.

During 2008, the Company purchased 8 million Fyffes ordinary €6 cent shares in the market at an aggregate cost of €5.4m. At 31 December 2009 and 2008, the Company and subsidiary companies held 19,021,610 Fyffes plc ordinary shares. The right to dividends on these shares has been waived and they are excluded from the calculation of earnings per share.

8. Notes supporting cash flow statement

8.1 Cash generated from operations

8.2 Cash flows from investing activities

8.3 Cash flows from financing activities

8.4 Analysis of movement in net funds in the year

9. Reconciliation of other reserves