Total Produce full-year profits up 5.6% as revenues jump 10.4%

Group says results benefited from more normalised trading conditions in Europe

The group said revenue rose 10.4 per cent to €3.45 billion from €3.12 billion for the preceding year

The group said revenue rose 10.4 per cent to €3.45 billion from €3.12 billion for the preceding year

 

Total Produce, the food distributor spun out of Fyffes, has reported pretax profits of €46.8 million for 2015, up 5.6 per cent on the €44.3 million reported a year earlier.

The group said revenue rose 10.4 per cent to €3.45 billion from €3.12 billion for the preceding year.

Total said adjusted earnings before interest, taxes, depreciation and amortisation (ebitda) was up 13.4 per cent to €82.8 million from, €73 million. The company recorded a 12 per cent increase in adjusted earnings per share to 10.58 cent from 9.45 cent in 2014.

The full-year results benefited from a stronger operational performance and more normalised trading conditions in Europe with average prices increasing on 2014 levels, Total said.

The group’s businesses in France, Ireland, Italy, the Netherlands and Spain reported combined revenue that rose 5 per cent to €1.65 billion from €1.56 billion with a 10.1 per cent increase in adjusted ebitda to €22.1million, up from €20.1 million a year earlier.

In the group’s non euro-zone European business, which includes the Czech Republic, Poland, Scandinavia and the UK, revenue increased by 7.6 per cent to €1.53 billion, from €1.43 billion in the preceding year with adjusted ebitda rising 14.4 per cent to €38.6 million form €33.8 million.

Total’s international business division, which comprises Northern America and India, saw revenue increase by 68 per cent to €321 million, as against €191 million in 2014, with adjusted ebitda jumping 19.7 per cent to €3.4million from €2.8 million.

The group has proposed a 15 per cent increase in the final dividend to 2.027 cent per share and said it “continues to actively pursue further investment opportunities and is targeting adjusted earnings per share for 2016 in the range of 10.5 to 11.5 cent per share.”

During the period under review, Total completed its fourth investment in North America with a 50 per cent investment in Gambles, a fresh produce company based in Toronto.

Gambles, which was founded in 1989 and employs over 280 staff, offers a wide range of fresh, local and imported produce that is delivered daily throughout Ontario to the retail, wholesale & food-services sectors. In 2014 it reported sales of CAD$170m (€26m).

Post year-end, the group continued its growth in North America with the acquisition of a 65 per cent interest in Progressive Produce, which is based in Los Angeles with annual sales of $200 million.