Total Produce see revenue fall but profit rises

Revenues at fresh food distributor Total Produce declined 4.5 per cent to €1.59 billion in the six months to the end of June, against a background of less favourable conditions.

The company said volume growth was offset by price decreases in the period. Adjusted EBITA decreased by 3.7 per cent to €30.2 million in the six months, due to the effect of average price decreases, divestments and currently translation.

However, operating profit at the company increased 5.8 per cent to €27 million, compared to €25.5 million in 2013.

Pre-tax profit was up by 5.7 per cent to €24.2 million, and adjusted earnings per share increasing marginally to 4.86 cent per share.

The group continues to be cash generative, with operating cash flows of €20.6 million for the six month period.

Chairman Carl McCann said Total Produce’s growth will continue to be driven by successful acquisitions, adding that the company recently agreed to acquire the final 50 per cent of All Seasons Fruit in the Netherlands.

He said the group is maintaining a full year adjusted earnings per share guidance of 8.40 to 9.40 per share.

Although average prices decreased in the first-half of 2014, Mr McCann said the company continued to record volume growth.