Total Produce profits up 13%

IRISH fruit and veg distributor Total Produce has said it is on course to reach its target of doubling its turnover over the next five years, adding that much of its growth will come via large-scale acquisitions.

The Dublin-based company, which was formed at the beginning of last year as a spin-off from Fyffes, yesterday reported a 13.2% year-on-year rise in pre-tax profits for the first half of this year to €22 million. EBITA (earnings before interest, tax and amortisation) rose by 15% to €27.6m, while total revenue was up by 6.1% at €1.29 billion. Adjusted earnings per share rose by 13% to 4.09c. Operating profit was up by 15.6%, year-on-year, to €24.8m.

Total Produce closed unchanged at 55 cents in Dublin trading. The stock has dropped 6.8% this year, less than the 62% plunge by Fyffes, which said its August 29 annual profit would fall because of higher costs to buy and ship tropical fruit.

The proposed interim dividend of 54c per share is up by 8%. The company reiterated it is targeting mid-to-upper single digit growth in adjusted earnings per share for the year.

“Our strategy is to grow our business organically and by acquisition. We have the resources to grow significantly by completing medium and larger acquisitions and are on target to meet our previously stated ambition to double turnover over five years,” said chairman Carl McCann.

He said the company’s first half results represented “a satisfactory increase in earnings” and grew as a result of acquisitions and tight control over costs.

“The outcome has been satisfactory. Trading conditions were normal and we benefited from the restructuring programme implemented in Britain last year.”