Fruit distribution company raises its earnings guidance

FRUIT distribution company Total Produce has reported a strong set of full-year results for 2010 — including an 18% increase in pre-tax profits and a 7% rise in revenue — and has upped its earnings guidance for 2011.

The Dublin-based company said pre-tax profits went from €28.4m to €33.6m, last year, with revenue (which includes its share of joint ventures and associate companies) going from €2.43bn to €2.6bn.Adjusted earnings per share were up from 6.47c to 6.84c and net debt decreased by just under €3m to €47.9m.

“We delivered a good 2010 performance, with a 5.7% increase in adjusted earnings per share to 6.84c. This result reflects the strength and broad base of the group’s operations against a background of tougher economic conditions in certain locations,” Total’s chairman Carl McCann said.

The company saw good revenue growth in its Scandinavian, Eastern European and Eurozone/Mainland European divisions — with its British business the only overseas division showing deterioration. There the company suffered (revenue, when measured in sterling, falling by 7%, and by 2% in euro terms to €508m) due to poor weather and difficult wholesale trading. On the positive side, however, Total managed to continue to grow its soft fruit business in Britain, seen as a key area by management.

In terms of outlook, the company’s management said it remains in a strong financial position — the earnings per share guidance, for 2011, of 6.5c-7.5c, represents a slight upturn in forecast.

There was also good news for shareholders with the company recommending a final dividend of 1.243c per share (up from 1.15c at the same point last year), which represents a 5.5% increase in the full-year dividend, to 1.783c per share. This will be voted on by shareholders at the company’s annual general meeting. The shares closed at 45 cents, up 4.6%.