Total announces increase in dividend after strong first-half performance
Food distributor reports 12% rise in total revenues as pretax profits jump 28% to €35m
The food distributor, which was spun out of Fyffes in 2007, reported adjusted earnings per share that was up 10.1 per cent to 6.78 cents
Total Produce has delivered a strong first-half performance with total revenue rising 12.2 per cent to €2.15 billion from €1.9 billion as pretax profits jumped 28.6 per cent to €35.4 million.
The food distributor, which was spun out of Fyffes in 2007, reported adjusted earnings per share that was up 10.1 per cent to 6.78 cents.
Total announced a 10 per cent increase in its interim dividend to 0.8906 cent per share and said it continues to target increased full-year adjusted earnings per share in the upper half of the previously-announced range of 12 to 13 cent per share.
During the six-month period under review, the company, which said it is “actively pursuing further investment opportunities,” increased its shareholding in the Oppenheimer group from 34 per cent to 65 per cent.
Adjusted earnings before interest, taxes and amortisation (ebita) rose 12 per cent in the first-half to €42.5 million from €37.9 million.
“Trading conditions overall were satisfactory. In the early part of year, unusual weather conditions in southern Europe lead to temporary shortages of certain salad and vegetable lines. However given the group’s diversified business model this did not have a material impact,” Total said.
“Our North American division experienced relatively less favourable trading conditions in the period. While overall volumes in this division have increased on a like-for-like basis from prior year, the result was impacted by lower pricing due to greater volumes of product in the market and weather conditions that negatively impacted quality,” it added.
The group’s euro zone business, which covers Ireland, France, Italy, the Netherlands and Spain, reported a 3.8 per cent rise in revenues to €903 million with a 3.9 per cent increase in adjusted ebita to €13.8 million.
Total’s non-euro zone business, covering the Czech Republic, Poland, Scandinavia and the UK, reported a 1.4 per cent decline in revenues to €800 million with adjusted ebita rising by 11.7 per cent to €22.1 million, helped by higher average prices and the contribution of recent bolt-on acquisitions.
The group’s international division, which includes North America and India, reported an 80 per cent rise in revenues to €471 million with adjusted ebita jumping 35 per cent to €6.6 million.