Total Produce profit surges 43% following acquisitions

Fresh produce firm’s profit reaches €72.5m as revenue climbs 14% to €4.29bn

Total Produce said last month it had acquired a 45 per share in Dole, in a €245 million deal.  Photograph: iStock

Total Produce said last month it had acquired a 45 per share in Dole, in a €245 million deal. Photograph: iStock

 

Pretax profit at Total Produce surged in 2017, rising 43 per cent to €72.5 million as acquisitions impacted the company’s balance sheet.

The fresh produce group, which last month announced a major deal with Dole Food Company in the United States, said revenue rose almost 14 per cent last year, reaching €4.29 billion. On a like-for-like basis, revenue was up 4 per cent on higher average pricing, with volumes remaining static.

The company said the benefit from acquisitions on revenue figures was partially offset by the impact of foreign currency movements.

Its euro zone division, which includes its Irish business along with France, Italy, the Netherlands and Spain, saw revenue fall just under 1 per cent to €1.74 million. Adjusted earnings before interest, tax and amortisation rose 4 per cent to €27 million.

Satisfactory trading conditions

The group said overall trading conditions were satisfactory, although there were some volume shortages in the first half of the year. Excluding the effect of acquisitions, like-for-like revenue rose 2 per cent on price increases.

The North American division saw overall volumes rise on a like-for-like basis, but lower pricing held back its results, a situation that was attributed to surplus product in the market and the impact of weather conditions on quality.

On February 1st, Total Produce said it had acquired a 45 per share in Dole, in a €245 million deal that is seen as a major step for the firm.

Adjusted earnings before interest, tax, depreciation and amortisation were up 10 per cent to €104.4 million. “Total Produce has delivered very positive results in 2017,” said chairman Carl McCann. The company has proposed a dividend of 2.4527 cent per share, a 10 per cent rise.

Total Produce said it was targeting continued growth in 2018, on a like-for-like basis.

The company’s share price closed in Dublin down just more than 2 per cent.