Preliminary Results Y/E 31 Dec 2012

Fyffes' turnover exceeds €1 billion

Preliminary Results 2012

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

"Fyffes has delivered a very strong performance for 2012. Revenue exceeded €1 billion for the first time since demerger, driven by continued organic growth, and the result for the year also reflected further operational efficiencies, particularly in logistics. Earnings per share included the additional benefit of the shares repurchased in the second half of 2011. Trading conditions have been broadly in line with expectations in 2013 to date and the Group is maintaining its €27m-€33m target EBITA range for the year."

* These financial terms are defined on the next page.

7 March 2013

For further information, please view the 2012 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 €168m (19.7%) higher in 2012, exceeding €1 billion for the first time since the demerger of Total Produce in 2006. Group revenue, excluding Fyffes' share of its joint ventures, amounted to €784m in the year, an increase of €125m (18.9%). The strong increase in turnover in the year has been driven by further organic growth in each of the Group's product categories, combined with price inflation. In addition, c.€35m of the increase in sales related to a translation benefit on Sterling and US Dollar denominated revenues and the full year impact of the van Wylick joint venture which was acquired in March 2011.

Operating profit

Fyffes achieved a strong increase in operating profits in 2012, driven primarily by further operational efficiencies and organic growth, particularly in the banana category. Adjusted EBITDA* in 2012 amounted to €41m, up 38.4% on the previous year. Adjusted EBITA* amounted to €31.6m, up 36.1% on 2011. The calculation of Adjusted EBITA and Adjusted EBITDA is set out in note 2 of the accompanying financial information. Adjusted EBIT* amounted to €29.4m, up 44.9% year on year, reflecting a reduction in amortisation charges in 2012. 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 variability in year on year profitability.

Fyffes performed strongly in the banana category in 2012. The industry experienced continued cost inflation in the year, with higher fruit and fuel costs. In addition, there was a significant adverse movement in exchange rates in 2012 due the strength of the US Dollar, particularly relative to the euro. The impact of these negative factors was mitigated by significant operational efficiencies achieved by the Group in the year, including the reconfiguration of certain parts of its shipping logistics. Fyffes also achieved further organic growth in the banana category in 2012, with new and existing customers, reflecting the Group's service level capabilities and relative competitiveness. Market conditions were broadly favourable in 2012, particularly during the second half of the year in the weekly priced Continental market. Higher average selling prices were driven by a number of factors including higher costs, unfavourable exchange rates and supply constraints as a result of weather and other production issues in a number of key growing regions. The Group recognised an impairment charge of €2.8m in 2012 against certain tropical production assets in the banana category. Fyffes continues to pursue necessary increases in selling prices in all key markets to offset the impact of further cost inflation and unfavourable exchange rates.

In the pineapple category, the Group reported a small operating profit, slightly down on the previous year. Fyffes made some progress in the category in 2012, with volume growth in the mid-teens in percentage terms, combined with reductions in fruit and shipping costs. However, as in the banana category, exchange rates had a significant adverse impact in the year. In addition, trading conditions were less favourable in the second half of the year due to excess market volumes. The Group's own pineapple plantations accounted for 42% of Fyffes' total pineapple volumes in the year.

Fyffes' melon operations delivered a strong underlying trading result in the year, with continued volume growth as a result of the additional production assets acquired in the second half of 2011 and early 2012. Trading conditions were generally favourable in the 2011/12 US import season, due to supply constraints and warmer winter weather. Revenues were strongly ahead as a result of the combination of volume growth, higher average prices and a translation benefit. Operating costs were higher in 2012, as a result of increased shipping and fuel costs, with more fruit now being discharged on the West Coast and North East of the US, and higher production costs, including labour and depreciation.

Balmoral International Land Holdings plc ('Balmoral'), in which Fyffes retains a 40% stake, has not yet reported its 2012 results. Fyffes' share of Balmoral losses in 2011 amounted to €5.9m, including an impairment provision to write down the carrying value of its investment to €50,000. Should Balmoral report additional losses, the maximum impact for Fyffes would be a further write down of its investment from €50,000 to nil. If Balmoral reports profits, Fyffes could consider recognising its share of such profits.

The total operating profit for the Group, which is the Adjusted EBITA of €31.6m less amortisation charges and the Group's share of joint ventures interest and tax, amounted to €28.3m for the year, compared to €13.2m in the previous year (which included the €5.9m Balmoral losses).

* Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation, excluding the Group's share of Balmoral's result. Adjusted EBITA is adjusted EBITDA less depreciation charges. Adjusted EBIT is adjusted EBITA less amortisation charges. Adjusted diluted earnings per share excludes amortisation charges and related tax credits and the Group's share of Balmoral's result in previous years.

Financial expense

Net financial expense in the Group's subsidiary companies in 2012 amounted to €1.2m, compared to €0.7m in the previous year. Excluding non-cash interest costs of €0.7m (2011: €1.1m) relating to the discounting of deferred acquisition consideration and other provisions, cash interest expense amounted to €0.5m compared to interest income of €0.4m in 2011, reflecting lower average cash balances and lower interest rates year on year. The Group's share of the net financial expense of its joint ventures was €0.1m in 2012, compared to €0.2m in the previous year.

Profit before tax

Adjusted profit before tax for 2012 amounted to €30.3m, 36.2% up on the previous year, in line with the increase in EBITA. As set out in note 2 of the accompanying financial information, adjusted profit before tax excludes the 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, and, in previous years, the Group's share of Balmoral's result. Profit before tax, excluding these adjustments, amounted to €27.2m compared to €12.5m in 2011, an increase of 117%.

Taxation

An analysis of the tax charge for the year is set out in note 3 of the accompanying financial information. The underlying tax charge in 2012 was €3.9m compared to €2.9m in the previous year, equivalent to a rate of 13% (2011: 13%), when applied to the Group's adjusted profit before tax. The underlying tax charge excludes 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 2012 income statement shows a tax charge of €2.5m before these adjustments, compared to €1.3m in the previous year.

Non-controlling interests

The non-controlling interests share of profit after tax for the year amounted to €0.1m in 2012, compared to a credit of €0.2m in the previous year.

Earnings per share

The Group's adjusted diluted earnings per share in 2012 amounted to €8.82 cent, a strong 45.8% up on the previous year. This increase reflects the 36.2% increase in adjusted profit after tax combined with the full year impact of the shares repurchased during the second half of 2011. The calculation of adjusted earnings per share is set out in note 4 of the accompanying financial information. It excludes the amortisation of intangible assets and related tax credits and, in previous years, the Group's share of Balmoral's result. The diluted earnings per share after amortisation charges (and Balmoral's result in the prior year) amounted to €8.26 cent in 2012, compared to €3.53 cent in the previous year, an increase of 134%.

Dividend and share buyback

The Board is proposing to pay a final dividend for 2012 of €1.42 cent per share, up 7.6% on the previous year. Subject to shareholder approval at the forthcoming AGM, this dividend, which will be subject to Irish withholding tax rules, will be paid on 13 May 2013 to shareholders on the register on 12 April 2013. In accordance with company law and IFRS, this dividend has not been provided for in the balance sheet at 31 December 2012. Total dividends in respect of 2012 will amount to €2.07 cent, 7.5% up on the previous year and equivalent to a payout ratio of 23.5% based on adjusted earnings per share. This represents a yield of 3.5% based on Fyffes' current share price.

Fyffes will seek to renew its authority from shareholders to repurchase shares at its 2013 AGM. Subject to this authority and taking into account the Group's financial position and other investment opportunities, the company may from time to time repurchase further Fyffes plc shares in the market.

Balance sheet

Net funds

Fyffes increased its net cash balances by €9.8m in 2012 and closed the year with net cash of €8.6m. The Group generated strong cash flows from its operations in 2012, with operating cash flows in the year, before depreciation, amortisation and impairment charges and excluding the contribution from joint ventures, amounting to €42.3m. Total capital expenditure in the year, including leased assets of €2.9m and €2m of farming assets acquired in Guatemala, amounted to €9.2m. Other recurring payments included dividends of €5.9m, tax of €2.5m, deferred acquisition consideration of €1m and pension deficit contributions (including in relation to the MNOPF) of €3m. In addition, the Group invested €12.1m in working capital in 2012 as a result of further significant organic growth in all parts of its business.

Pension obligations

The deficit in the Group's defined benefit pension schemes, before deferred tax, increased from €21.7m at the beginning of the year to €29.6m at the end of the year. While asset values in the various schemes increased by €8.9m in 2012, liabilities increased by €16.8m as a result of the significant reduction in long term bond rates in the year.

Investment in Balmoral International Land Holdings plc ("Balmoral")

In accordance with International Financial Reporting Standards, Fyffes' 40% investment in Balmoral continues to be accounted for under equity accounting rules. During 2011, Fyffes elected to write down the carrying value of its investment to €50,000. There has been no change in this position in 2012. Balmoral continues to be actively managed and, given its extensive and well diversified portfolio of properties in Ireland, the UK and Continental Europe, remains in a position to benefit from any improvement in property market conditions.

Shareholders' funds

Shareholders' funds amounted to €135.7m at 31 December 2012, compared to €135.8m at the beginning of the year. Retained profits of €24.6m in 2012 were offset by the actuarial losses in the Group's pension schemes, the unwinding of previously recognised hedging gains, dividend payments and translation losses on non-euro denominated net assets in overseas subsidiaries and joint ventures.

Current trading

Trading conditions have been broadly in line with expectations in 2013 to date. While it is very early in the year, Fyffes is maintaining its target EBITA for 2013 in the range €27m-€33m. The Group continues to pursue necessary increases in selling prices to offset the impact of cost inflation and unfavourable exchange rates. Fyffes remains focused on achieving further growth, both organically and through strategic acquisitions and alliances.

David McCann, Chairman

on behalf of the Board

7 March 2013

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 2012

Fyffes plc

Summary Group Statement of Comprehensive Income for the year ended 31 December 2012

Summary statement of movement in equity for the year ended 31 December 2012

Fyffes plc

Summary Group Balance Sheet as at 31 December 2012

Fyffes plc

Summary Group Cash Flow Statement for the year ended 31 December 2012

Fyffes plc

Notes to Preliminary Results for the year ended 31 December 2012

1. Basis of preparation

This preliminary financial information has been derived from the Group's consolidated financial statements for the year ended 31 December 2012, which were approved by the Board of Directors on 6 March 2013, and 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 2011 annual report, none of which have changed in 2012. The Group's full financial statements and annual report will be circulated to shareholders, published on the Group's website and filed with the Irish Registrar of Companies in due course.

There were no new accounting standards which became effective for the first time in 2012 that had a material impact on the results or financial position of the Group in the year ended 31 December 2012.

The comparative financial information for the year ended 31 December 2011 presented in this preliminary results announcement represents an abbreviated version of the Group's statutory financial statements for that year, on which an unqualified audit report was issued and which have been filed with the Companies Registration Office in Dublin.

The financial information is presented in euro, rounded to the nearest thousand. The results and cash flows of Group companies denominated in foreign currencies have been translated into euro at the average exchange rates for the period while their balance sheets have been translated at the year end rate of exchange. Adjustments arising on retranslation of the opening net assets and results for the year of these non-euro denominated operations at the year end rate of exchange are recognised directly in equity, in the currency translation reserve, net of any movements on related foreign currency borrowings, including those arising on long term intra-Group loans regarded as quasi-equity in nature. All other translation differences are recognised in the income statement. The principal non-euro currencies applicable to the Group are Sterling and the US Dollar. The average and closing rates to the euro were as follows:

2. Adjusted profit before tax, EBITA and EBITDA

Fyffes is currently organised into two separate operating divisions - Tropical Produce and Property. Fyffes' Tropical Produce operations produce and import bananas, pineapples and melons sourced in Central and South America for distribution to customers in Europe and the US. Fyffes' Property activities comprise its 40% investment in Balmoral International Land Holdings plc ("Balmoral") which is an international property development company. This preliminary results announcement presents the separate information for Balmoral under equity accounting rules in the Income Statement and the Balance Sheet and in the reconciliation above. The performance of the Tropical Produce division is reviewed by the Chief Operating Decision Maker ("CODM"), being the executive team comprising the Executive Chairman, the Chief Operating Officer and the Finance Director, based on Adjusted EBITA which, while not a term defined in IFRS, Fyffes believes is the most appropriate measure of the underlying operating result of the Group. Adjusted EBITA is earnings before interest, tax and amortisation charges, excluding exceptional items, if any, and the Group's share of Balmoral's result and including the Group's share of its joint ventures on a consistent basis. Adjusted earnings per share are presented on a similar basis in note 4 below. Adjusted EBITA reflects the results of Fyffes' Tropical Produce operations, net of all central overheads, and is the basis for the analysis of the performance of that division in the accompanying text. Financial income and expense, income tax and certain corporate overheads are managed on a centralised basis. The only inter-segmental transactions between Fyffes' Tropical Produce division and Balmoral arise because Fyffes leases a number of its distribution centres from Balmoral and Fyffes in turn sublets space in its corporate head office to Balmoral.

Balmoral has not yet reported its 2012 preliminary results. However, as Fyffes wrote down its investment in Balmoral to a nominal €50,000 value in 2011, should Balmoral report additional losses, the maximum impact for Fyffes would be a further write down of its investment from €50,000 to Nil.

3. Income tax

Including the Group's share of the tax charge of its joint ventures, amounting to €0.9m (2011: €0.9m), which is netted in operating profit in accordance with IFRS, the total tax charge for the year amounted to €3.4m (2011: €2.2m). Excluding the impact of deferred tax credits related to the amortisation of intangibles, the underlying tax charge for the Group for the year was €3.9m (2011: €2.9m), equivalent to a rate of 13% (2011: 13%) when applied to the Group's adjusted profit before tax.

4. Earnings per share

Adjusted diluted earnings per share

Adjusted diluted earnings per share is calculated to exclude the Group's share of the results of Balmoral International Land Holdings plc, intangible amortisation, related tax credits and the impact of share options with a dilutive effect, if applicable.

5. Post employment benefits

The table above summarises the movements during the year in the Group's 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 gains and losses are recognised in the Statement of Comprehensive Income, in accordance with the amendment to IAS 19 Actuarial Gains and Losses, Group Plans and Disclosures. The measurement of the Group's pension obligations is based on a number of key assumptions which are determined in consultation with independent actuaries. One key assumption is the appropriate interest rate to use in discounting the estimated future cash flows of the schemes. At 31 December 2012, the Group used a rate of 4.35% (2011: 5.2%) in respect of its euro denominated schemes and 4.15% (2011: 4.7%) in respect of its UK scheme.

6. Dividends and share buy-back

The directors have proposed a final dividend for 2012, subject to shareholder approval at the AGM of €1.42 cent per share. In accordance with IFRS, this dividend has not been provided for in the balance sheet at 31 December 2012.

In January 2012, Fyffes cancelled 5,000,000 of the treasury shares it held. At 31 December 2012, the company and subsidiary companies held 28,075,000 Fyffes plc ordinary shares (2011: 33,075,000). 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 generated from operations

7.2 Cash flows from investing activities

7.3 Cash flows from financing activities

7.4 Analysis of movement in net funds in the year

8. Reconciliation of other reserves