Fruit distributor reports slow trading

FRUIT and vegetable distributor Total Produce has reported a slow start to trading in the current year, on the back of a tough 2009 which showed a near 5% fall in profits to just under €28.4 million.

Before exceptional items were taken into account, pre-tax profit had amounted to €40.1m, which was down by 1.8%. Total revenues fell by 3.3% to €2.43 billion and adjusted earnings per share figure of 6.47c was down by over 4% on 2008’s total.

A final dividend of 1.15c per share has been proposed, meaning 2009’s total dividend remains unchanged at 1.69c a share.

The performance for last year was described by management as “resilient against the background of a challenging economic environment and adverse currency movements”.

“The adjusted earnings per share of 6.47c is at the higher end of previously announced earnings target range and the total dividend for the year is unchanged at 1.69c per share,” Total chairman Carl McCann said.

Mr McCann also said that the company remains in a strong financial position and continues to pursue “attractive acquisition opportunities”.

With regard to further expansion, management has, in the past, made it clear that its ongoing growth strategy will focus on both the organic channel and further bolt-on acquisitions and larger scale takeovers.