Total Produce to pursue investment
The Dublin and London-listed fruit distributor — the former general produce arm of Fyffes — yesterday reported a stagnant set of results for the first six months of the year, of which adjusted earnings per share of 4.2c marked the only significant increase, 2% higher than the corresponding period last year.
Pre-tax profit for the period was unchanged, on a year-on-year basis, at €21.7 million.
Adjusted earnings before interest, tax and amortisation (EBITA) was down 3.5% at €26.2m and EBITDA was down 3.2% at €32.6m. Total revenue — including the group’s share of joint ventures — was unmoved at €1.33 billion, but did rise slightly when those joint venture contributions were excluded.
Operating profit was up marginally at €23.8m, but the interim dividend is unchanged from the 54c recommended this time last year.
Total chairman Carl McCann said it was “a solid performance” in the first half, “despite the temporarily difficult trading conditions in certain markets within continental Europe”.
The group, he said, “continues to actively pursue further investment opportunities in both new and existing markets”.
Since the end of June, Total has concluded a number of bolt-on acquisitions and investments with a combined spend of €14m. This included increasing its shareholding in South African produce provider, Capespan.
The Dublin-based group has a strong enough balance sheet to support further purchases and management is known to be keen on expanding further across Europe.
Management also, yesterday, reiterated (for the second time since May) its full-year earnings per share guidance of between 6.5c and 7.5c.
Yesterday’s flat figures from Total Produce follow on from its former parent, Fyffes, this week reporting a 30.4% year-on-year increase in first half profits, and a 7.5% revenue increase.
