Total Produce says sales ‘resilient’ despite pandemic shutdown
Comfort for analysts as fruit and veg group says sales in line with 2019
The food service industry accounts for about 20 per cent of Total Produce sales.
Fruit and veg group Total Produce said trading for the six months to June 30th was “satisfactory”, with sales remaining resilient and broadly in line with last year despite the ongoing coronavirus pandemic.
In a trading update, the produce group said its strong presence in the global fresh produce industry, combined with diversity in its operations and products, and the response from its team to the crisis had fuelled its performance over the six months.
The strong performance came despite the group’s exposure to the food service channel, which accounts for about 20 per cent of Total produce’s sales and has been among the most severely impacted by the lockdown measures.
In a note, Davy said the update, which would put interim revenues 3 per cent ahead of its analysts’ expectations, and provided comfort for its full-year forecasts.
“Recognising the unprecedented economic backdrop and the group’s exposure to locked-down (food service) channels, this is a notably strong performance and provides comfort for our full-year forecasts,” Davy analyst Roland French said in a note.
Total said it expect satisfactory results for the full year, although it noted that prediction was subject to potential uncertainties due to the Covid-19 pandemic.
“Total Produce is in a strong financial position and continues to focus on the growth and expansion of the business,” the group said.