Total Produce revenues rise 8.9% as it ups stake in Grandview
Food distributor sees profits increase to €50.6m as adjusted earnings per share rise
Total has taken a further 30 per cent stake in Grandview, which trades under the names of The Oppenheimer Group and Oppy
The food distributor spun out of Fyffes in 2007, reported pretax profits that rose to €50.6 million from €46.8 million as total revenue jumped 8.9 per cent to €3.76 billion from €3.45 million a year earlier.
The company, which recorded a 14.1 per cent rise in adjusted earnings per share to 12.07 cent, said it had taken a further 30 per cent stake in Grandview, which trades under the names of The Oppenheimer Group and Oppy, for a consideration of €28.4 million (CAD$39.5 million). Following an initial acquisition of a 35 per cent stake in the firm in 2013, this brings the group’s stake in Grandview to 65 per cent after a total investment of €43.3 million.
Headquartered in Vancouver, and with sales of almost CAD$1 billion (€720 million), Oppy is a leading provider of fresh produce to its base of retail, wholesale and foodservice customers throughout North America. It recently agreed a strategic partnership with the New Zealand-based T&G Global Limited.
Total said euro zone-derived revenues in 2016, which cover the group’s businesses in Ireland, France, Italy, the Netherlands and Spain, rose 6.1 per cent to €1.75 billion with a 17 .1 per cent rise in adjusted earnings before interest, taxes and amortisation (ebita) to €26 million.
The group’s businesses in the Czech Republic, Poland, Scandinavia and the UK, saw revenues fall 1 per cent to €1.52 billion. The decline was partly attributed to a drop off in volumes in the UK in the second half of the year following the Brexit vote and the subsequent weakening of sterling.
“Overall while the decision of the UK to leave the European Union has created some macro-economic uncertainties, it is not expected to have a material impact on the Group going forward,” it said.
In Total’s international division, which covers North America and India, turnover increased to €544 million from €321 million.
Total said it made a number of fresh produce acquisitions in Europe and North America last year with a total expenditure of €60 million, including €17 million of contingent consideration. The group acquired 65 per cent of Progressive Produce, the Los Angeles based company with sales in excess of $200 million, along with further investments in a number of top quality produce companies.
It said it is continuing to “actively pursue additional acquisitions” and is targeting 2017 adjusted earnings per share in the range of 12.0 to 13.0 cent per share.”
The company has proposed a 10 per cent increase in final dividend to 2.2297 cent per share.