Total Produce, the fruit and vegetable distributor spun off from Fyffes last year, has reported pre-tax profits of €21.5m for the first half of 2007, up 13% on the same period last year.
Sales jumped by 33% to €1.2 billion and operating profits increased by almost 15% to €23.5m. Adjusted earnings per share rose 18% to 3.62 cent. A dividend of 0.5 cent will be paid.
The company said its sales were boosted by acquisitions. It added that costs and prices for its products both rose by around 5%, but there was good organic growth in some of its markets.
As a result it has lifted its target for full-year earnings growth from a mid-single-digit to a high single-digit percentage. This is despite poor summer weather's reducing demand for its products.
Total Produce said start-up losses from a joint venture in India with the Tata Group were as expected. The companies are setting up distribution facilities in India.
The company also bought health food distributor Wholefoods Wholesale in July, adding to the purchase of UK firm Redbridge Holdings in January. It said these buys, along with future deals, would form the basis for future growth.
Shares in Total Produce closed up four cent at 70 cent in Dublin this evening.
