FFY.L Regulatory News (FFY)

4 Jan 2008 07:00

Fyffes PLC04 January 2008 Fyffes plc Stock Exchange Announcement Fyffes expects 2007 results to be ahead of current expectations Fyffes plc is increasing its target adjusted EBIT for the year ended 30 December2007 to €17m from €15m previously, excluding its 40% share of the results ofBlackrock International Land plc. Adjusted EPS, excluding the Group's share ofBlackrock's results, is targeted to be €4.1 cent. During the second half of theyear, the impact of the further increase in bunker fuel costs has been offset byfavourable exchange rates and higher average selling prices. Looking ahead to 2008, the tropical produce industry is facing furthersignificant inflation in all its key input costs, including fruit, shipping andfuel. Notwithstanding these factors, Fyffes is targeting a mid-single digitpercentage increase in its adjusted EBIT for 2008 on a like for like basis,excluding the anticipated positive impact of its recent entry into the US wintermelon market. This target reflects anticipated improvements in the Group'sexisting melon and pineapple operations, the benefit of more favourable averageexchange rates and achieving the required increases in average selling prices. Fyffes' medium term strategy is to double the size of its business in the fiveyears ending 2011, with 75% of this growth from acquisitions and 25%organically. In 2007, the Group made significant progress with regard to itsorganic growth targets, with a 15% increase in its core European banana volumesin the year. With regard to acquisition activity, in addition to its recentlyannounced entry into the US winter melon market, Fyffes also purchased, inDecember 2007, the remaining 50% of its pineapple production business in CostaRica, while at the same time it sold its 50% stake in a pineapple farm inGuatemala. The total investment by Fyffes in these melon and pineapplebusinesses amounted to €27m, including working capital advances of €7m. Fyffes plc 4 January 2008 For further information, please contact: Brian Bell or Andrew McLindon, Wilson Hartnell PR - Tel: +353-1-669-0030 This information is provided by RNS The company news service from the London Stock Exchange