There were stormy scenes at the annual general meeting of fruit distributor Fyffes yesterday when a shareholder castigated the board over its ties with producers in Israel. Edward Power reports.
Group chairman Mr Neil McCann robustly dismissed the charge that Fyffes is turning a blind eye to the plight of Palestinians in the occupied territories, stressing the company's commitment to ethical practices. Fruit wholesalers routinely sourced from volatile regions and it was never appropriate to take sides, Mr McCann told the meeting, which was picketed by the Ireland-Palestine Solidarity Campaign.
Reports that the board was seeking permission for a rights issue were dismissed by vice-chairman Mr Carl McCann, who said Fyffes was merely seeking approval to release shares at a future date, most likely in consideration for acquisitions. There has been speculation that the company is considering a buyout of rival Chiquita. The motion was passed by a strong majority.
The weakening US currency had benefited the group, which sources 64 per cent of produce in the dollar region. So far-flung are its activities, however, that the rising strength of the euro will inevitably have a deleterious impact on some operations, Mr McCann said.
Fyffes commitment to growth by acquisition leaves it strongly placed to withstand slipping demand for fruit, the chairman explained.
"During the year, we invested over €60 million in developing the business through acquisitions and capital projects. We completed two important acquisitions last year, continuing our expansion in northern and central Europe," he said.
Shareholders approved the annual accounts and confirmed a final dividend of €3.9384 per ordinary share for year ended December 31st.
The re-election to the board of Mr David McCann, Mr Gerry Scanlan, Mr Frank Gernon, Ms Rose Hynes and Mr Declan McCourt was approved.
Directors declined to comment on the status of Fyffes insider-dealing lawsuit against former shareholder DCC and its chief executive, Mr Jim Flavin.
Fyffes posted a seven per cent rise in profits before tax, goodwill and exceptional items to €68.1 million last year. However, turnover slipped by six per cent to €1.84 billion, reflecting the disposal of a number of businesses over the previous 24 months.
Turnover included a half-year contribution from Hortim, the Czech distribution business acquired last summer. Hortim had sales of €60 million in the second half but incurred a €700,000 loss in the period.
Overall, operating profits were up by 3 per cent to €63.3 million while margins rose to 3.4 per cent from 3.1 per cent.
