Total Produce raises its full-year earnings targets

Fruit distributor Total Produce has raised its earnings target for this year and has said it is actively hunting more acquisitions.

The Dublin-based company, which is the former general produce arm of banana specialist Fyffes, yesterday told shareholders at its general meeting that it now expects earnings per share, for 2016, to come in at the upper half of its previously announced range of 10.50c to 11.50c.

The move is based on a “satisfactory” trading performance in the first four months of the year.

Having completed its €20m share buyback programme at the end of January the company also said that it may purchase more shares, as appropriate.

The board will also pay last year’s dividend of 2.027c per share — which is up 15% on the previous year — today.

The company also told shareholders that given its strong financial position it “continues to pursue attractive acquisition opportunities.”

Goodbody Stockbrokers yesterday forecasted full year earnings per share of 11.3c for Total Produce this year — in the middle of the new guidance range and 7% up on last year.

Analyst Patrick Higgins said earnings growth will be driven by Total’s recent near €1bn purchase of a controlling stake in Los Angeles-based distribution business Progressive Produce.

“The improvement in citrus pricing also underpins our positive outlook for the stock this year,” he said, noting the citrus supply shortage in Spain being supportive to European pricing levels.