H1 revenue up 8% at Total Produce

Dublin-based international fruit distribution business, Total Produce has reported an 8.2% year-on-year rise in revenue for the first half of the year, to €1.43bn.

Pre-tax profit, for the period, technically remained flat at €24.2m, but when adjusted to exclude acquisition-related charges and costs and other exceptional items, profits were actually up by 11.5%, at €30.3m.

Adjusted earnings rose by almost 12% to €42.6m and total revenue, a performance metric which takes in contribution from the company’s various associate and joint venture partnerships, was up by 9.2% to €1.73bn.

Company chairman Carl McCann called the first half performance “very strong” and added that “a stronger operational performance and recent acquisitions contributed to this earnings growth.

In February, the group completed its fourth investment in North America, with a 50% investment in Gambles, a fresh produce company based in Toronto, said Mr McCann.

Last month, Total Produce, the former general produce arm of Fyffes, upped its full-year earnings guidance by around 2.5% from a range of 9.70c-9.95c to one of 9.20c-10.20c.

It said, yesterday, that it is now targeting earnings at the top end of that range for the year.

“Updated guidance implies a 2.5% upgrade to our current forecast,” said Declan Morrissey of Davy Stockbrokers yesterday.

“It also implies flattish year-on-year earnings per share growth for the second half of 2015, which gives us further comfort around our full-year forecasts.

"The interim dividend increase of 15% will also be welcomed by holders.”