Total Produce reports 18% rise in revenues
Improved trading conditions sees the fresh food distributor revise its full year earnings target upwards
Total Produce chairman Carl McCann said that the group’s strong performance was driven by its overseas expansion programme. Photograph: Brenda Fitzsimons/THE IRISH TIMES
Revenues at food group Total Produce rose by 18.8 per cent in the first half of the year, up to €1.7 billion, as it benefited from the contribution of acquisitions and improved trading conditions. Profit before tax advanced by 14 per cent to €22.9 million, while earnings before interest, tax, depreciation and amortisation (EBITDA), was up by 7.5 per cent to €39.1 million in the six months to June 30th
Total Produce chairman Carl McCann said that the group’s strong performance was driven by its overseas expansion programme.
“The group expanded into the north American market in January 2013 with an agreement to acquire 65 per cent of the Oppenheimer group, 35 per cent initially with a commitment to acquire a further 30 per cent in 2017,” he said, adding that the group is revising upwards its full year earnings target into “the upper half of the range between 8.00 to 8.80 cent per share”.
The group’s fresh produce division reported a 19.2 per cent jump in revenue, up to €1.6 billion, with earnings up by 11 per cent to €29.8 million. Margins, at 1.85 per cent, were slightly down on the comparable period.
“Trading conditions overall were improved on the same period in 2012 with a strong performance in the Eurozone and Northern Europe offset to a lesser extent by weaker conditions in the UK,” the company said in a statement.
Eurozone revenues increased by 17.2 per cent to €775 million, due to “ the contribution of acquisitions completed in the past fifteen months and improved trading conditions in certain continental European locations”. On a like-for-like basis, revenues increased by 11 percent.
A mix of volume and average price increases, the continued introduction of new product lines and the impact of favourable currency translation in the period, saw revenues rise by 20.1 per cent in north America.
Revenues in the UK however rose by just 1.3 per cent to €248 million, due to the weakening of sterling.
The group’s healthfoods and consumer products distribution division saw revenues increase by 7.6 per cent to €56 million, due to the impact from acquisitions.
Total Produce also announced a 7.5 per cent increase in the interim dividend to 0.6095 cent per share.