Revenues jump 10.4% to €3.45bn at Total Produce

Shares in Dublin-based fruit distribution company Total Produce rose by nearly 3% yesterday on the back of a strong set of annual figures and the company targeting strong earnings growth for this year.

The former general produce arm of Fyffes reported revenues of €3.45bn for 2015, up 10.4% on the previous year. Pre-tax profits were up by 5.6% at €46.8m.

The strong performance was aided by the firm’s continued expansion into the North American market during the year, which continued post year-end with the purchase of a 65% stake in LA-based Progressive Produce. Total dividend was up by 15% at 2.76c per share.

Management said it is targeting adjusted fully-diluted earnings per share in the range of 10.5c to 11.5c per share. The total for last year was 10.58c per share.

Analyst Darren McKinley of Merrion Stockbrokers hailed Total Produce’s 2015 performance as “a good result”, with 5% organic sales growth and EBITDA margin improvement on the back of raised prices.

“Management have allocated the strong cash flow generation toward raising the dividend more than earnings growth, an ongoing share buyback and bolt-on acquisitions in the North American market,” he said, adding that recent acquisitions should sustain earnings for the medium-term.