The downturn, said Fyffes, in a statement is because sales revenues were reduced by the disposal of the Kahl and Sofiprim businesses in the second half of 2001 and early in 2002.

Operating profits were up slightly to ?63.3million before goodwill compared to ?61.6m in 2001. Trading conditions were generally slightly tougher than in 2001, although exchange rates improved in favour of the Irish multi-national.

'The result for 2002 represents a highly satisfactory performance achieved in challenging market conditions,' said McCann. 'Increased profits and strong cash flows have enabled Fyffes to enhance its leading position in European fresh produce, while at the same time increasing the resources available to pursue further group development.' Two significant acquisitions were made in 2002: 70 per cent of Czech supermarket supplier Hortim International; and 80 per cent of Internationale Fructimport, based in Hamburg.

The trading environment generally for Fyffes's produce division was reported to be slightly weaker in 2002 than in the previous year although the company said given these conditions, its performance was 'satisfactory.' And the position for bananas was broadly in line with that for the previous year.

Profits before tax were slightly down on the previous year at ?68.1m compared to ?63.5m in 2001. And adjusted, fully diluted earnings per share before goodwill and exceptional items were up 12.8 per cent to ?0.1417 'Fyffes starts 2003 with its postiion as the leading European operator enhanced by the improved performance in 2002,' said McCann. 'Supported by its strong balance sheet and continuing cash generating capabilities, the group is well placed to competeS and to take the business forward.'

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