Fruit distributor Total Produce has reported pre-tax profits of €29.8m for 2008, down over 10% on the figure of €33.2m reported in 2007, as it said it remained cautious for its prospects in 2009.
The company said the fall in profits was due to an exceptional charge of €4.6m connected to the closure costs of a manufacturing plant in Ireland during the year and the closure of a number of produce locations in the UK.
Revenues for the year rose by 3.5% to €2.5 billion, due mainly to contributions from the acquisitions of Haluco and Nedalpac in the Netherlands and bolt-on acquisitions made during the second half of 2007 and in 2008.
The company is recommending a final dividend of 1.15 cent per share, subject to shareholder approval at its forthcoming AGM. Total dividends for 2008 will amount to 1.69 cent per share, up 2.4% on the total 2007 dividend.
'Consumer demand is less certain and in view of the tougher economic climate, it is prudent to take a more cautious view of the prospects for 2009,' commented Chairman Carl McCann in today's results statement.
He said that company's results may also be affected by movements in other currencies against the euro.
'However, Total Produce remains positive regarding the fundamentals in its markets and its position as one of the leading fresh produce companies in Europe,' he added.
'The group is targeting a very solid earnings performance for 2009 with adjusted earnings per share in the range of 5.5 to 6.5 cent per share on 2009 target revenues of €2.6 billion', he concludes.
Shares in Total Produce closed up three cent at 22 cent in Dublin.
