Total Produce beats forecasts

Fruit distributor Total Produce is targeting adjusted earnings per share of between 8.40c and 9.40c for 2014, having beaten forecasts with its 2013 results.

The Dublin-based firm the former general produce arm of Fyffes yesterday reported a 13% increase in full-year total revenue (which includes contribution from joint ventures and associate investments) to just over €3.17 billion — up from €2.8bn for 2012. When joint ventures are stripped out, core group revenue amounted to just under €2.64bn, still up by 8.5% on an annual basis.

A better-than-expected performance in the core fresh produce division boosted the group’s revenue and earnings per share past analyst forecasts.

Chairman Carl McCann said the growth was primarily driven by successful acquisitions completed in recent years, “including the investment in Oppenheimer in North America”.

Total completed its agreement to buy a 65% majority shareholding in the Canadian fresh produce marketing and distribution business at the beginning of last year.

Operating profit, before exceptional items, was up by over 12% to €46.9m; with pre-tax profit ahead by 32.6% at €48.2m.

A final dividend of 1.66c, up by 10% on the second half of 2012 has boosted the total dividend for 2013 to 2.27c, a 9.3% increase on the previous year.

Net debt fell from €53m to €11m and the defined benefit pension scheme’s liability from €23.7m to €3.9m.

Total’s share price closed up 4% in Dublin yesterday.