Total Produce profits down 6% despite rise in revenues

Total Produce’s interim results showed a 5% increase in total revenues but profits before tax were down 6% to €20.4m.

Chairman Carl McCann, said: “Total Produce has delivered a strong performance for the first half of 2012 with a 6.7% increase in adjusted earnings per share to 4.48 cent assisted by the positive contribution of acquisitions in the past 12 months.”

Total Produce, which grows, sources, and supplies fresh produce to retailers and wholesalers, said the strong results were as a result of acquisitions over the past year that cancelled out the company’s offloading of its 50% interest in Capespan International Holdings.

Total Produce sold its half of shares in the fruit distribution business of Capespan Europe to Capespan South Africa last year to increase its stake in the South African fruit producer. This helped grow revenues in the group’s non-European business.

Revenue rose from €80m to €137m in the six months to the end of June, with adjusted EBITDA increasing from €2.2m to €3.5m.

Total Produce’s eurozone-based revenues from fresh produce fell by 0.9% to €653m. The UK division also decreased by 1.4% in the period to €253m.

The only European fresh food division to post an increase in revenue was the group’s Northern European business, which reported that revenues had increased by 2% to €327m. Adjusted EBITDA increased by 20% to €10.8m.

The company’s healthfoods and consumer products distribution division was one of its strongest performers. The division, which distributes to retail and wholesale outlets in Ireland and Britain recorded a 32% increase, taking revenues up to €52.1m.