Total Produce makes €36.1m

Fyffes spin-off Total Produce posted pretax profits of €36.1 million for 2006, up from €35 million a year earlier.

This increase was on the back of an 11 per cent jump in total revenue from €1.676 billion in 2005 to €1.861 billion.

Announcing its results yesterday, the fresh fruit and distribution group also unveiled an ambitious goal to double sales to €4 billion over the next five years. Shorter-term targets outlined by the group included mid single-digit growth for adjusted earnings per share, which reached €5.70 in 2006.

In addition, the board plans to increase dividend payments for 2007 to between 1.5 cent and 1.75 cent, although this depends on a number of factors, such as acquisition commitments.

The group said that trading for the first two months of 2007 has been in line with expectations. In January, Total Produce acquired UK fresh produce company Redbridge Holding for €23 million, and in February the group linked up with Tata with a view to creating distribution facilities for fresh produce across India.

Total Produce indicated yesterday that acquisitions will be a key driver of the group's performance. "The strategy of the company is to continue to expand the business both organically and, in particular, by acquisition," chairman Carl McCann said.

"We want to do three or four medium-sized deals each year, most likely in Europe, although we've also been looking further."

In terms of future acquisition targets, Mr McCann said the company will not "stray too far" from its core business of fresh produce and distribution.