Fyffes Ratio Analysis

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Fyffes Plc

EXECUTIVE SUMMARY
One way of determining if a company is doing well is through the use of financial ratio analysis. Not only are they used by management to measure the firm’s performance, but are used by other people interested in the performance of the company such as stockholders, bankers and investors. For the purpose of this assignment, we are going to analyze financial ratios of Fyffes plc (ISEQ: FFY), a leading international importer and distributor of tropical produce. As the interpretation as well as an understanding of financial ratios is crucial when calculating ratios, we are analyzing Fyffes from different angles. * The company’s history and recent development of the company (2006-2010) help us to understand decisions that were made through the period as well as to understand company’s financial statements at the time. * Researching about the company’s products and market position and analyzing the company’s strengths, weaknesses, opportunities and threats help us to not only place company within the right industry but also asses its chief competitors and its advantage/disadvantage over those. * Recognizing and analyzing chief competitors, Chiquita Brands International, Dole Foods Company, and Fresh Del Monte Produce, is crucial when calculating ratios as comparison with competitors is one of most popular methods when interpreting results. * The strategic group map shows that Chiquita Brands International (CQB) has the closest product range. Therefore, ration analysis data is based on the Fyffes plc’s and Chiquita Brands International, Inc.’s Consolidated Income Statement and Consolidated Balance Sheet. * At the end of this assignment, we have predicted the future share price of Fyffes plc is going to rise based on the analysis of its revenue growth trend and current health financial performance.

TABLE OF CONTENTS
INTRODUCTION……………………………………………………………………..| 4| 1. COMPANY OVERVIEW……………………………………………………..| 5| 2. THE HISTORY………………………………………………………………..| 6| 3. KEY EVENTS AND RECENT DEVELOPMENTS (2006-2011) AFFECTING THE PERFORMANCE OF THE COMPANY…………………………………| 8| 4. ANALYSIS OF COMPANY’S PRODUCTS, BUSINESS AND KEY MARKETS…………………………………………………………………….. 5.1. Company’s products and key markets…………………………………. 5.2. SWOT analysis…………………………………………………………| 111111| 5. FYFFES MAIN COMPETITORS……………………………………………..| 12| 6. FYFFES STRATEGY……………………………………………………….....| 14| 7. KEY FINANCIAL RATIO ANALYSIS……………………………………….| 16| 8. THE COMPANY’S CURRENT SHARE PRICE AND THE ESTIMATION OF THE FUTURE PRICE BASED ON THE INFORMATKION IN ITS LAST ANNUAL REPORT…………………………………………………………….| 25| 9.1. Company’s current Share price…………………………………………| 25| 9.2. Estimation of the future Share price based on last Annual report……… 9.3.1. Financial Highlights………………………………………………… 9.3.2. Company’s Operation and Market…………………………………. 9.3.3. Comparative Valuation - Food Sector……………………………..| 29303132| CONCLUSION…………………………………………………………………………| 33| | |

APPENDICES…………………………………………………………………………. * Appendix 1: Fyffes: Preliminary Results 2011………………………………… * Appendix 2: Fyffes: Group Income Statement 2006-2010……………………. * Appendix 3: Fyffes: Group Balance sheet 2006-2010…………………………. * Appendix 4: Chiquita: Consolidated Income Statement 2006-2010…………… * Appendix 5: Chiquita: Consolidated Balance Sheet 2006-2010………………..| 343536373839| BIBLIOGRAPHY…………………………………………………………………….| 40|

INTRODUCTION
One way of determining if a company is doing well is through the use of financial ratio analysis. For the purpose of this assignment we are going to analyze financial ratios of Fyffes plc (ISEQ: FFY), a leading international importer and distributor of tropical produce. In the first part of the assignment we are going to give a company overview followed by discussing the company’s recent history and developments. Next we will discuss the...
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