Total Produce revises upwards its full year earnings targets

Tuesday 03 September 2013 18.11
Total Produce's half yearly revenues up almost 19%
Total Produce's half yearly revenues up almost 19%

Fruit and vegetable distributor Total Produce has reported higher half yearly revenues and pre-tax profits for the six months to the end of June on the back of its overseas expansion drive.

Total Produce said its revenues rose by 18.8% to €1.7 billion from €1.4 billion the same time last year. Its pre-tax profits increased by 14% to €22.9m from €20.1m

The company said its interim dividend increased by 7.5% to 0.6095 cent per share.

During the six month period, the company expanded into the North American market with a deal to buy 65% of the Oppenheimer Group. Total will initially buy 35% of the firm with a commitment to buy another 30% in 2017.

In its results statement, the company said that trading conditions are satisfactory and so it is revising upwards its full year earnings target into the upper half of the range between 8 to 8.80 cent per share.

Shares in Total Produce closed 3.9% higher in Dublin on the back of the results.

''Total Produce has continued to deliver good results in 2013, with an 18.8% increase in revenues and a 10.2% increase in earnings,'' commented the company's chief executive Carl McCann.

He said that the company's performance was driven by its overseas expansion programme.

Revenue at the company's fresh produce division rose by 19.2% in the six month period to €1.6 billion with adjusted EBITDA rising by 11.1% to €29.8m. Total Produce said that trading conditions overall improved on the same time last year with a strong performance in the euro zone and Northern Europe offset to a lesser extent by weaker conditions in the UK.

Turnover at its healthfoods and consumer produces distribution division rose by 7.6% to €56m, while net adjusted EBITDA fell to €1.6m from €1.8m the same time last year due to a change in produce mix.

During the six month period, the company sold its 25% shareholding in the Capespan Group for €21.7m. Total Produce said it invested over €17.6m in the business in the first half of the year.