Half Yearly Report

Fyffes plc

Interim Results 2011

Fyffes delivers strong first half result and confirms full year target

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

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

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

"Fyffes is pleased to report a strong increase in operating profits for the first half of the year. Trading conditions were generally positive for much of the period, particularly compared to the very difficult first half last year. Fyffes is maintaining its €20-24m target EBITA for the full year."

5 September 2011

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

Financial results and operating review

Revenue

Total revenue, including the Group's share of its joint ventures, was €56m higher (13.9%) year on year in the first half, amounting to €459m. This included the €29m first time contribution from the Group's one third stake in German distributor Van Wylick, which was acquired during the period. This business has performed broadly in line with expectations since acquisition. In addition, Fyffes has benefitted from the commencement of banana sales to this joint venture. Sales were also higher in each of the Group's product categories, driven by increases in volumes in a number of key markets.

Operating profit

Adjusted EBITA* increased 35% in the seasonally stronger first half, to €17.7m. The comparison to the same period last year is measured against the exceptionally difficult trading conditions which prevailed during the early months of 2010. The key drivers of the short term performance of Fyffes' tropical produce operations, and its banana category in particular, 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.

Fyffes performed strongly in the banana category in the first half of the year. Operating profit was €4.2m higher than the same period in 2010, when trading conditions had been adversely impacted by the prolonged period of cold weather and excess market supplies. Market volumes were lower for much of the first half in 2011 as a result of poor weather conditions in production regions. This had a positive impact on selling prices during the period, particularly in the weekly priced Continental market. Import volumes increased from May and pricing in Continental Europe has been adversely impacted in the weaker summer months. Fruit and shipping costs were higher during the first half of 2011, with bunker fuel prices in particular currently 40% up on the 2010 average, although the impact of these factors was reduced by the relative weakness of the US Dollar. Fyffes remains focused on reducing those costs it can influence and pursuing necessary increases in selling prices to offset the costs outside its control.

As anticipated, Fyffes has made further progress in the pineapple category in the first half of 2011. The Group's farming operations achieved higher yields, following completion of development work on the farm in Panama which was acquired in 2009, resulting in an increase in volumes. Trading conditions in Europe and the US were relatively difficult during the first half of the year as a result of excess market volumes. The Group achieved a close to breakeven result overall in the pineapple category in the period, similar to the previous year.

Building on the progress made in 2010, through expanded production and sourcing, the Group's US melon business increased its volumes further this year and delivered another satisfactory result in the key import season which ended in May. Market conditions were more difficult in the period, with lower average prices. The underlying trading result was down on the very strong performance in the previous year.

The Group's 40% share of the net profit after tax of Balmoral International Land plc, which is excluded from Fyffes' Adjusted EBITA, amounted to €0.4m compared to a loss of €0.9m in the same period last year, based on the most up to date valuation of its property assets. This excludes valuation losses of €1.8m set against Fyffes' revaluation reserves.

Total operating profit for the six months ended 30 June 2011, including the Group's share of Balmoral's result, amortisation and the joint ventures tax charges amounted to €16.5m, compared to €10.1m in the first half last year, an increase of 62.5%.

* Adjusted EBITA is operating profit, excluding Fyffes' 40% share of Balmoral's result and before exceptional items (if any), amortisation, interest and tax, including the equivalent share of joint ventures operating profit. The calculation of Adjusted EBITA is set out in note 2 of the accompanying interim financial information.

Financial income/expense

Net interest expense in the Group's subsidiary companies in the first half amounted to €0.3m, compared to net interest income of €0.2m in the same period last year. This reduction mainly reflects a €0.4m increase in the period in non-cash interest charges on deferred consideration liabilities and other provisions. Interest earned on the Group's cash balances in the period amounted to €0.2m, €0.1m down on the same period last year, representing a return of 1.4% on average net cash.

Profit before tax

Adjusted profit before tax amounted to €17.3m in the first half, 30.4% up on the same period last year, reflecting the increase in operating profit, less the higher interest costs. As set out in note 2 of the attached interim financial information, adjusted profit before tax excludes the Group's share of Balmoral's result, exceptional items (if any), 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. Profit before tax, before these adjustments, amounted to €16.1m, up 56.4% on the €10.3m in the same period last year.

Taxation

The underlying tax charge for the first half of the year has been estimated based on the tax rate that is expected to apply for the full year 2011. The tax charge for the period is analysed in note 3 of the accompanying financial information. Excluding the impact of deferred tax credits related to the amortisation of intangible assets and including the Group's share of tax of its joint ventures, the underlying tax charge for the half year was €2.3m (2010 half year: €1.7m), equivalent to a rate of 13% (2010 half year: 12.7%). This underlying rate is used for the purposes of calculating adjusted earnings per share. The equivalent underlying tax rate for the full year in 2010 was 13%.

Non-controlling interests

The non-controlling interest share of profit after tax for the first half amounted to €0.5m, compared to a credit of €0.1m in the same period last year.

Earnings per share

Adjusted fully diluted earnings per share, amounted to €4.41 cent in the first half, an increase of 30.5% compared to €3.38 cent in the same period last year. This increase reflects the 35% increase in Adjusted EBITA in the period and the benefit of the shares repurchased in 2010, partly offset by higher interest costs and the higher non-controlling interest charge. As set out in note 4 of the accompanying financial information, adjusted earnings per share excludes the Group's share of Balmoral's result, the amortisation of intangible assets and related tax credits. Fully diluted earnings per share, before adjustments, amounted to €4.34 cent in the period, compared to €2.75 cent in the first half last year, an increase of 57.8%.

Dividend and share repurchase

The Board has declared an interim dividend for the year of €0.605 cent per share, an increase of 10% on the prior year. This dividend, which will be subject to Irish withholding tax rules, will be paid on 19 October 2011 to shareholders on the register on 16 September 2011. In accordance with company law and IFRS, this dividend has not been provided for in the balance sheet at 30 June 2011. The Group may repurchase further Fyffes plc shares in the market, taking into account other investment opportunities.

Balance sheet

Net cash

Net cash at 30 June 2011 amounted to €32m compared to €37.1m at the beginning of the year. Cash generated from operations in the first half, comprising profit before tax, excluding the Group's share of profits in its joint ventures and before depreciation and amortisation amounted to €17.5m. Recurring expenditure during the period amounted to €9.5m, including dividends of €4m, capital expenditure of €3m, tax paid of €1.4m and pension deficit payments of €1.5m. Non-recurring investment expenditure in the period amounted to €13.1m, comprising €7.7m on acquisitions including a melon farming business in Guatemala and a one third stake in the Van Wylick distribution business in Germany, deferred consideration payments of €2.2m on prior year acquisitions and €3.2m by way of loans to suppliers to part fund their expansion and development. Cash balances are expected to reduce further during the second half of the year. The Group anticipates making further deferred consideration payments in respect of prior year acquisitions of up to €8.5m before the end of the year. In addition, the Group's US melon business sees a significant annual seasonal investment in working capital during the second half of the year.

Investment in Balmoral International Land plc ('Balmoral')

In accordance with International Financial Reporting Standards, Fyffes' 40% stake in Balmoral is treated as an investment in an associated company and accounted for under equity accounting rules. Under these rules, Fyffes' carries this investment at €10.6m, representing its share of Balmoral's reported net assets at 30 June 2011. The market value of this investment at that date was €3.7m based on Balmoral's then share price of €0.016. The resulting €6.9m discount to net asset value, which is lower than the €8.5m deficit at 31 December 2010, has not been recognised in Fyffes' balance sheet at 30 June 2011. Balmoral's shareholders have recently approved a corporate reorganisation, including the creation of a new holding company and the cancellation of its listing on the ESM and AIM markets.

Pension obligations

The deficit in the Group's defined benefit pension schemes, before deferred tax, reduced from €13.8m at the beginning of the year to €11.2m at 30 June 2011. The €3.4m reduction in asset values in the period was more than offset by a €6.1m reduction in scheme liabilities due to the increase in international bond rates. The schemes continue to be funded in line with actuarial advice and are closed to new members.

Shareholders' funds

Shareholders' funds increased to €148.7m at 30 June 2011, from €148.1m at the beginning of the year. Retained profits for the period of €14.3m were largely offset by a €6.9m non-cash loss on retranslation of the Group's Sterling and US Dollar denominated net assets, the €4m 2010 final dividend, the €1.8m set against revaluation reserves in relation to Balmoral's latest property valuation and a €1.3m negative movement in the hedging reserve.

Current trading

Trading conditions in Continental Europe were less favourable during the summer months, due to excess market supplies, but have improved in recent weeks. Fyffes is maintaining its €20-24m target Adjusted EBITA* for the full year.

* Adjusted EBITA excludes amortisation charges, the Group's 40% share of the results of Balmoral International Land plc and exceptional items (if any).

David McCann, Chairman

on behalf of the Board

5 September 2011

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

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Summary Group Statement of Comprehensive Income

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Summary Group Statement of Movement in Equity

Fyffes plc

Summary Group Statement of Movement in Equity (cont'd)

Fyffes plc

Summary Group Balance Sheet

Fyffes plc

Summary Group Cash Flow Statement

Fyffes plc

Notes supporting 2011 interim financial statements

1. General information and basis of preparation

The condensed consolidated interim financial statements of the Group for the half year ended 30 June 2011 are unaudited. These financial statements do not constitute the statutory financial statements that are required by Section 7 of the Companies (Amendment) Act, 1986 to be annexed to the annual return of the company. The statutory consolidated financial statements for the year ended 31 December 2010, updated for any revisions required by new accounting standards, have been annexed to the 2011 annual return and filed with the Registrar of Companies. The audit report on those statutory financial statements was unqualified.

The financial information contained in these interim financial statements has been prepared in accordance with the accounting policies set out in the last annual report for the year ended 31 December 2010, prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) as adopted by the EU Commission.

The financial information is presented in Euro, rounded to the nearest thousand. Given the seasonality of the tropical produce sector, the Group's profits are typically significantly weighted towards the first half of the year. The interim financial statements were authorised by the Board on 1 September 2011.

New accounting standards

The following new accounting standards became effective for the first time in 2011 but had no material impact on the results or the financial position of the Group in the six month period ended 30 June 2011:

·; Improvements to IFRS's (2010);

·; IAS 24 Revised - Related Party Disclosures;

·; Amendment to IAS 32 - Financial Instruments: Presentation - Classification of Rights Issues;

·; Amendment to IFRIC 14 - Prepayments of a Minimum Funding Requirement; and

·; IFRIC 19 - Extinguishing Financial Liabilities with Equity Instruments.

2. Adjusted profit before tax and EBITA

Fyffes believes that adjusted profit before tax, adjusted EBITA and adjusted earnings per share (note 4 below) are the appropriate measures of the underlying performance of the Group, excluding exceptional items and amortisation charges.

3. Taxation

Including the Group's share of the tax charge of its joint ventures of €0.7m, which is netted in operating profit in accordance with IFRS, the total tax charge for the period amounted to €2m (2010 first half: €1.1m).

Adjusting for deferred tax credits related to the amortisation of intangible assets, the underlying tax charge for the period was €2.3m (2010 first half: €1.7m), equivalent to a rate of 13% (2010 first half: 12.7%) when applied to the Group's Adjusted Profit before Tax.

The Group's underlying tax rate for the first half of the year is based on the estimated tax rate that is expected to apply for the full year. The equivalent underlying charge for the full year in 2010 was a charge of €2.8m, equal to a rate of 13%.

4. Earnings per share

Adjusted fully diluted earnings per share excludes the Group's share of Balmoral International Land plc's result, the impact of exceptional items after tax and non-controlling interests, once-off tax credits and amortisation charges on intangible assets and related deferred tax credits.

5. Employee post employment benefits

This table summarises the movements in the net deficit on 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 finance income on scheme assets. The actuarial gain/(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.

6. Dividends paid to equity shareholders

The final dividend for 2010 of 1.2 cent per share, approved by the shareholders at the Annual General Meeting on 12 May 2011, gave rise to a distribution of €4m in the period.

The directors have proposed an interim dividend for 2011 of €0.605 cent per share (2010: €0.55 cent per share), an increase of 10%. This dividend, which will be subject to Irish withholding tax rules, will be paid on 19 October 2011 to shareholders on the register at 16 September 2011. In accordance with company law and IFRS, this dividend has not been provided in the balance sheet at 30 June 2011.

At 30 June 2011 and 31 December 2010, the company and subsidiary companies held 32,075,000 Fyffes plc ordinary shares (30 June 2010: 19,021,610). The right to dividends on these shares has been waived and they are excluded from the calculation of earnings per share.

7. Notes supporting cash flow statement

7.1 Cash flows from operating activities

7.2 Cash flows from investing activities

7.3 Cash flows from financing activities

7.4 Analysis of movement in net funds in the period

8. Reconciliation of other reserves